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INDIAN PACKAGING INDUSTRY

The Indian packaging industry is expected to become the fourth-largest packaging
market in the world, with revenues of US $ 43.7 billion in 2016, growing at a CAGR of
12.3% during the forecast period.
Flexible plastic packaging is the fastest-growing packaging category in India,
achieving a CAGR of 16.6%. TechNavio's analysts forecast the Global Flexible Plastic
Packaging market will grow at a CAGR of 4.86 percent over the period 2014-2019.
The beverage packaging market is set to grow in the next 10 years at a fairly flat
rate, particularly in Asia and South America. Visiongain's analysis indicates that the
global beverage packaging market will reach a value of $105.24bn in 2014.
India's per capita annual packaging expenditure was US$20 in 2011, which is
significantly lower than the top 20 market average of US $ 347.6. The low per capita
expenditure offers a huge business opportunity for packaging companies
India's retail growth and increased consumption of consumer products is driving the
demand for packaging in the country. The Indian food processing market is one of
the largest in the world in terms of production, consumption and growth prospects.
The large growing middle class, liberalisation and organised retail sector are the
catalysts to growth in packaging.
The highest demand for packaging and associated equipment comes from food
processing industry (50 %) and pharmaceutical industry (25 %). Laminated
products including form-fill-seal pouches, laminated tubes and tetra packs are
growing at around 30 percent p.a.
Indian packaging machinery imports are $ 125 million.
Despite the Indian packaging industry undergoing some consolidation, it is still
fragmented, especially following the introduction of new companies in the country
Growth drivers:
• India is the world's 2nd largest producer of food next to China
• It is the 2nd largest vegetable and 3rd largest fruit producer in the world
• Food processing sector has nearly doubled to 13.7% during the last four years.
• It ranks second only to Japan in inland sector fish production and produces
about 6.57 million metric tonne fish every year.
• Of the world's total annual spice trade of 850,000 tonnes, India accounts for 44
per cent in quantity and 36 per cent in value
• The beer market in India is pegged around 12 million hectoliters.
India Retail Facts Total Retail: Rs.2,000,000 crore (Rs.20,000 billion)
Modern retail size: Rs.1,64,000 crore (Rs.1,640 billion): 8.2 per cent of total retail
Employment in modern retail: 10 direct employment in retail and 100 indirect
employment per Rs.1 crore (Rs.10 million) sales
Total employment in modern retail: 1.65 million
Estimated indirect employment in modern retail: 16.5 million
Dependence on modern retail: Over 18 million people.
India is geared to be in fast growth track providing immense opportunity and growth
potential.
Source: Research and Markets, www.indiapackagingshow.com other industry estimates.

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