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1 Trends and Opportunities in the Indian Packaging Industry Analysis of changing packaging trends in the Food, Cosmetics and Toiletries, Beverages and Other Industries Report Code: PK1152MR 1

2 Scope This report provides thorough, fact based analysis of the Packaging industry in India. The findings are supported by GlobalData's data collected using extensive secondary and primary research methodologies. Market Overview Provides an overview of the usage of different packaging materials across different industries in terms of the number of units, packaging share and growth rates during Growth in use of Pack Material by Sector Provides an overview of the shift in the utilization of various packaging materials across sectors during Trends, Case Studies and Future Outlook Provides an understanding of the ongoing packaging trends in the country convenience, affordability, multi-packs, eco-friendly etc. across the five packaging materials. The report also provides a view into the future prospects of the packaging industry. The case studies in each packaging section gives a success example highlighting the packaging innovations, strategies and best practices Key Packaging Materials Includes data and analysis number of units (Millions), volumes (Million kg/lit/units), growth rates for five packaging types viz. Rigid Plastics, Rigid Metal, Glass, Paper & Board, Flexible Packaging and Others (other than the afore mentioned five types) during It also covers: Sub-material Container Type Closure Material Closure Type Outer Material Outer Type 2 2

3 Reasons to buy Packaging companies and retailers seek the latest information on consumer trends and opportunities to formulate their sales and marketing strategies. There is also demand for authentic market data with a high level of detail. This report has been created to provide its readers with up-to-date information and analysis to uncover emerging opportunities of growth within the CPG market. As consumer product demand evolves the dynamics between different packaging types also evolves favoring some packaging types and formats and leaving others increasingly out of line with demand patterns. As a result, understanding the shifting market dynamics is key to ensuring maximum sales in the future. The differential growth across different packaging materials and formats drive fundamental shifts in the market. These differentials result from various factors such as changing consumer preferences, regulatory compliance, and innovation within the packaging market. The report is a unique combination of in-depth qualitative analysis and authoritative packaging data for the years Each packaging material has detailed data breakdown by packaging type, closure material, closure type, outer material, and outer type. Summary The Indian Packaging market was valued at 231,542.5 million units in 2016 and is estimated to grow at a CAGR of 9.2% to reach 359,421.9 million units in 2021 Flexible Packaging is the largest packaging type accounting for 159,337.4 million units in 2016, while Rigid Metal is estimated to witness the fastest CAGR of 11.5% during Strong favorable demographic factors such as increasing disposable income levels, rising consumer awareness and demand for packaged food are expected to drive the growth of packaging industry in India 3 3

4 Market Size Analysis by Pack Material and Industry Paper & Board is the leading packaging material in India The packaging market in India is characterized by strong use in the Food Industry, which makes heavy use of Paper & Board Packages, as well as Rigid Plastics. Paperboard provides manufacturers with the ability to create a wide variety of structures, customized to the product. Rigid Plastics however, offer the benefits of safe delivery and transport, and ensures the freshness of Food products such as Bakery & Cereals. Flexible Packages, providing benefits such as easy storage, light-weight, and resealability, through the zip-locks that are increasingly used in packaging Food products such as Dairy and Savory & Deli Foods. The rising number of affluent consumers and the demand for premium products drives manufacturers to launch their products in Glass bottles to add to the superiority of the products. Non-Alcoholic Beverages drive the demand for Rigid Plastic packages (PET, HDPE) as they offer the benefits of light weight and cost-effectiveness. In addition, consumers often look for products such as packaged water and juices in smaller, lower weight formats thus creating a large market for Rigid Plastics single-serve and on-the-go plastic packs. Rigid Metal finds its applications across industries, mainly Beer and Soft Drinks, in the form of Cans, while Tobacco and Tobacco products account for nearly X% of the total Paper & Board consumption. X Use of Packaging Material (in Billion pack units and Billion kg) by Industries, 2016 Market volume (Billion Kg), 2016 Industry Market size (Billion Units), 2016 X X XX X X X X X X X X Others* X X X X X X *Others include Household Care, Pet care and Paint & Stains; Tobacco. Paper & Board in Others Industry is not represented in the chart to avoid deformities in the pictorial representation. In 2016 Market Volume and Size for Paper & Board were 2,711.1 Billion Kg and Billion Units respectively. Food Alcoholic Beverages Non- Alcoholic Beverages Cosmetics & Toiletries X X X XX XX X XX XX 4 4

5 Growth Analysis by Industry - Food Dairy Food is the most growing sectors in the Food Industry Rigid Plastics and Flexible Packaging accounted for a X% share of the Indian Food Industry in 2016, and its growth during will largely driven by the increasing demand for Dairy Food and Bakery & Cereals. The rising popularity of Prepared Meals in the country will further fuel the growth of Rigid Plastics, while the improving economic scenario will drive the demand for premium Food products packaged in Glass and Rigid Metal. CAGR >X% X%-X% X%-X% X%-X% =<X% Flexible Packs Rigid Plastics Rigid Metal Glass Paper & Board Bakery & Cereals Dairy Food Ice Cream Oils & Fats, Pasta & Noodles Prepared Meals Soups Confectionery Dried Food Fish & Seafood Fruit and Vegetables Savory & Deli Foods Seasonings, Dressings & Sauces Savory Snacks Syrups & Spreads Meat Growth in use of Pack Material by Sector, Dairy Food Dried Food Ice Cream Oils and Fats Pasta & Noodles Soups Syrups & Spreads Confectionery Fish & Seafood Fruit and Vegetables Savory & Deli Foods Savory Snacks Seasonings, Dressings & Sauces Prepared Meals Bakery & Cereals Meat Dairy Food Bakery & Cereals Soups Fish & Seafood Fruit and Vegetables Syrups & Spreads Savory Snacks Savory & Deli Foods Pasta & Noodles Prepared Meals Meat Seasonings, Dressings & Sauces Confectionery Savory & Deli Foods Seasonings, Dressings & Sauces Fruit and Vegetables Syrups & Spreads Bakery & Cereals Oils and Fats Fish & Seafood Dairy Food Soups Oils and Fats Pasta & Noodles Dairy Food Ice Cream Confectionery Prepared Meals Bakery & Cereals Savory Snacks Dried Food Seasonings, Dressings & Sauces Savory & Deli Foods Fish & Seafood 5

6 Rigid Plastics Growth Analysis by Closure Material and Closure Type Rigid Plastic packs with Plastic closures witness strong demand in India million units Plastic closures are the most extensively used Closure Material for Rigid Plastics, accounting for XXX,XXX million units in 2016, and expected to reach XXX,XXX million units (X%) in 2021, growing at a CAGR of %, driven by the Soft Drinks and Food industries. Packaged Water, Juices, Carbonated Drinks and RTD Tea and Coffee generate the highest demand for these closures (mainly Screw Top format) as they provide a tight seal for the product, and prevent leakages and spills. On the other hand, Metal closures took a small share (%) in 2016, but is expected to register a strong CAGR of X% over Spirits such as Vodka and Rum will largely drive the growth of Metal Closures, as Rigid Plastic packs are expected to grow in popularity in these segments. For Closure Types, Screw Tops lead with a share of X% (XX,XXX million units) in 2016, and an expected CAGR of % during , while Film closures will grow at % during the same period. CAGR Growth Analysis by Closure Material and Closure Type (million units), Closure Material Plastic Metal million units Closure Type Screw Top Film Prize Off Others % X% % % % % 6

7 Rigid Plastics Market Size and Growth Analysis by Industry and Sector Non-Alcoholic Beverages create the major traction for Rigid Plastic packages Rigid Plastic containers are largely used in the Food Industry due to their cost-effectiveness and lightweight features. Products such as yogurt, milk, cakes, and savory foods demand Rigid Plastic containers as they ensure the safe delivery of products from farm to table, and facilitate the storage of food items in the refrigerator for longer durations. Rigid Plastic packs also find extensive usage in the Non-Alcoholic Beverages industry for products such as Packaged Water and Juices, due to convenience benefits. Alcoholic Beverages is expected to witness the highest CAGR of X% over , driven by the growth in the Still & Sparkling Wine Sector. Rigid Plastics Market Size and Growth Analysis by Industry and Sector (Billion Units), Industry Market Size by Sector (in Billion Units), 2016 & 2021 Food Alcoholic Beverages Non-Alcoholic Beverages Cosmetics & Toiletries Others* X X X X X Paints Dishwashing Products General Purpose Cleaners Textile Washing Products Bleach Others Skincare Oral Hygiene Haircare Personal Hygiene Make-Up Others Dairy Food Savory & Deli Foods Bakery & Cereals Oils and Fats Ice Cream Confectionery Meat Seasonings, Dressings & Sauces Others * Others include Household care, Pet care, Tobacco and Paint & Stains Still & Sparkling Wine Beer Spirits (Standard) Beer & Ale X Soft Drinks (Standard) XX Soft Drinks (Extended) CAGR % X% % % % 7

8 Methodology (1/4) Introduction Packaging data is based upon our extensive packaging consumption data research program. This research is far reaching, in terms of the range of products covered as well as the number of countries researched, and detailed in terms of the number of products covered and the level of packaging detail at the product category level. The program covers 171 different product categories over 11 Industries and 50 countries over 5 continents, and provides detailed information on material, sub material, type for primary container, closure, outer, and multi-packaging in all these areas. For container, closure, and outer the data includes both historical and forecast figures Overall Research Program Framework 8

9 Methodology (2/4) Stage 1: Initial Market Sizing of the Packaging Market The initial stage of research involves collecting information from multiple sources (including other in-house research programs) in order to obtain baseline data for the value and volume of the packaged consumer goods Market as well as packaging formats and shares. This provides both historical and forecast data Our sources include: Our existing databases o Robust and established consumer packaged goods information, which is itself based on extensive industry interviewing o Exhaustive Market research using online surveys into consumer behavior across 10 core countries, which provides both consumption data and consumer insights o From year 2 onwards, feedback from previous years reports Online desk research o End use Market sizing information from trade data, company data, industry sites and portals o Production, Imports, Exports, Sales information from Trade Associations, Manufacturers, Government Bodies Following this research and consolidation of findings we produce a set of baseline data, which feeds forward to the next stage 9

10 Methodology (3/4) Stage 2: Primary Research on Packaging Consumption Primary Research consists of detailed and extensive Store Checks and Industry Interviews. Store Checks are conducted by local researchers in all 50 countries covered by the program to collect current year data for primary packaging material, sub material and type, closure material and type, outer material and type, and multi-packaging material and type, with shares, across all 171 categories. A strict data format is used to collect information in a consistent manner over both geography and time. Researchers are also encouraged to comment on any formats that do not fit the prescribed definitions or any changes they notice in packaging. Alongside store checks, consultants also do product pick-ups from the key supermarkets/hypermarkets to understand and collect sub-material information for container types. Extensive interviews, carried out in local language as required, are carried out for all 50 countries and to cover all 171 categories. We speak to a variety of experts in both national and international companies including Leading Executives in packaging at both the global level and local level Marketing Managers with specific knowledge about packaging from the major manufacturers in local product category leaders Using a standardized, structured questionnaire with a facility to note ad-hoc comments, we collect Quantitative data o Current and historical Market size by volume and value o Current and historical packaging formats and shares Qualitative data o Key Market volume and value trends, and forecasts o Possible future packaging formats 10

11 Methodology (4/4) Stage 3: Analyst Review All inputs from the initial two research stages are systematically reviewed. Any information that does not appear to be robust is checked against original sources - original data sets, interview transcripts or original documentation. At this stage we may also ask for a store check or interview to be re-done, and we also use the facility of online shopping to double check for any unusual packaging combinations. Analysts review all data and consolidate into a final data set for further review. This stage of the process results in a final congruent dataset of information per country, showing all the inputs for each of the 171 categories along with the proposed outputs, including historical and forecast shares. The final dataset is a result of building information from the detailed level of packs on a shelf to an overall industry view. Stage 4: Expert Review At this stage the data is imported into a bespoke SQL database to provide enhanced data review, improved data management, and allowing publication via interactive databases so that it can be assessed against industry benchmarks and a Senior Management Review board. The Review Board then provides feedback and any suggestions for improvement. The data is then amended in line with these suggestions, re-imported in to the SQL database and re-exported to the data cube for review and feedback, again by Senior Management. This loop is repeated as often as is necessary to produce consistent and accurate data. Stage 5: Publication Once we have consistent and accurate data, the data cubes are published to our online interactive portal, the Packaging Intelligence Center, to enable interrogation by subscribers. 11

12 Table of Contents 1. Executive Summary 2. Market Overview a. Key Takeaways b. Market Size Analysis by Pack Material and Industry c. Pack unit Analysis by Industry d. Change in Number of Units by Packaging Type and Industry 3. Growth Analysis by Pack Material and Industry a. Use of Pack Material by Industry and Change in Consumption over the Forecast Period 4. Growth Analysis of Pack Material by Industry and Sector 5. Analysis by Pack Material (Rigid Plastic, Flexible Packaging, Glass, Paper & Board and Rigid Metal) a. Key Takeaways b. Sub-material and Container Type c. Closure Material and Closure Type d. Outer Material and Type e. Analysis by Industry and Sector f. Gaining and Losing Industries g. Trends h. Case Study i. Future Outlook 6. Appendix a. Data b. Definitions c. Methodology d. Trends Definitions 7. About Global Data 12

13 List of Tables Growth Analysis by Industry - Food Growth Analysis by Industry Cosmetics and Toiletries Growth Analysis by Industry Alcoholic Beverages Growth Analysis by Industry Non-Alcoholic Beverages Growth Analysis by Industry Others Rigid Plastics Key Losers and Gainers by Industry, Rigid Metal Key Losers and Gainers by Industry, Paper & Board Key Losers and Gainers by Industry, Flexible Packaging Key Losers and Gainers by Industry, Glass Packaging Key Losers and Gainers by Industry, Data Tables Definitions 13

14 List of Charts Use of Packaging Material (in billion pack units and billion kg) by Industries, 2016 Growth in use of Pack Material by Industries, Packaging Share Change by Material and Industry, 2016 & 2021 Rigid Plastics Growth Analysis by Sub-material and Container Type (Million Units), Rigid Plastics Growth Analysis by Closure Material and Closure Type (Million Units), Rigid Plastics Growth Analysis by Outer Material and Type (Million Units), Rigid Plastics Market Size and Growth Analysis by Industry and Sector (Billion Units), Rigid Metal Growth Analysis by Sub-material and Container Type (Million Units), Rigid Metal Growth Analysis by Closure Material and Closure Type (Million Units), Rigid Metal Growth Analysis by Outer Material and Type (Million Units), Rigid Metal Market Size and Growth Analysis by Industry and Sector (Billion Units), Paper & Board Growth Analysis by Sub-material and Container Type (Million Units), Paper & Board Growth Analysis by Closure Material and Closure Type (Million Units), Paper & Board Growth Analysis by Outer Material and Type (Million Units), Paper & Board Market Size and Growth Analysis by Industry and Sector (Billion Units), Flexible Growth Analysis by Sub-material and Container Type (Million Units), Flexible Growth Analysis by Closure Material and Closure Type (Million Units), Flexible Growth Analysis by Outer Material and Type (Million Units), Flexible Market Size and Growth Analysis by Industry and Sector (Billion Units), Glass Growth Analysis by Sub-material and Container Type (Million Units), Glass Growth Analysis by Closure Material and Closure Type (Million Units), Glass Growth Analysis by Outer Material and Type (Million Units), Glass Market Size and Growth Analysis by Industry and Sector (Billion Units),