Clocking a compounded annual growth rate (CAGR) of about 16 per cent, the packaged food market in India is expected to have crossed $51.5 million (mn) mark in 2015 as against $25 million in 2010, noted a recent ASSOCHAM-TechSci Research joint study.
“In wake of the increasing disposable incomes and growing number of nuclear families, market share of packaged food in processed food market is expected to marginally increase to about 29 per cent in 2016 from about 28 per cent in 2015,” according to the study titled ‘Dynamics involved in multi-layered food packaging,’ conducted by The Associated Chambers of Commerce and Industry of India (ASSOCHAM) jointly with TechSci Research.
Food and beverage packaging market in India was estimated at about $16 billion (bn) as of 2015 from about $12 bn in 2010 and registered a CAGR of over six per cent.
With a size of over $4 bn, the plastic food packaging market currently accounts for lion’s share of about 63 per cent in India’s total plastic packaging market which is currently valued at about $7 bn, highlighted the ASSOCHAM-TechSci Research study.
Market for multilayer plastic food packaging is currently estimated at about $1 bn which is about 22 per cent of India’s total plastic food packaging industry, however, in the total food and beverages packaging market, multilayer plastic food packaging accounts for over six per cent share in value terms.
“Growing usage of packaging material in various food service outlets together with increasing demand for packaged beverage and expanding working class population has given impetus to food packaging industry in India,” said Mr D.S. Rawat, secretary general of ASSOCHAM while releasing the findings of the study.
In terms of share, metallic and other packaging material accounts for about half of India’s overall food and beverages packaging market followed by printed cartons and rigid packaging (28 per cent) and flexible packaging material like food packaging laminates and packaging foils (24 per cent), highlighted the ASSOCHAM-TechSci Research study.