Packaging Industry in India

COVID-19 impact on packaging

The economic impact of COVID-19 has resulted in severe income drops for many Indian consumers, with a dramatic decline in discretionary spending. The situation has led to downtrading across the board.

COVID-19 country impact

India’s lockdown came into effect from 25 March 2020. All forms of movement were restricted for consumers apart from those classified as essential workers, including medical workers, police and grocery shop owners.

Small sizes in food packaging formats gain ground in 2019 as consumers seek to limit waste and show greater interest in trial purchases

Smaller pack sizes grew in popularity in 2019 as manufacturers looked to penetrate rural markets in India with a large part of demand coming from rural markets. For example, Amul introduced smaller pack sizes in response to rural residents who feel that larger packs are not consumed in one go and can therefore end up being wasted.

Bottled water sales support rise of PET in soft drinks packaging in 2019

Increased interest in personal health has led to higher demand for bottled water which underpinned the dominance and rising share of PET in overall soft drinks packaging in 2019. Much of the increased demand for bottled water has been at the expense of products with high levels of added sugar as well as those which contain non-natural ingredients.

Metal’s growth in alcoholic drinks propelled by experimental expansion from players in 2019

While glass remained the dominant pack type for alcoholic drinks due to its traditional use, its premium appeal and the bottle return schemes that are in place in many parts of the country, demand is began to slowly shift away from the packaging material. The move has been spurred by industry players’ experimentation with different pack types as they sought to reach out to new consumer bases while expanding the range of consumption occasions across all alcoholic drinks categories.

Small and mini formats in beauty and personal care hold multi-level appeal in 2019

Smaller pack sizes continued to benefit from changing lifestyles and preferences, with demand driven by several factors which have moved beyond carry-on luggage requirements. Indian consumers have generally become more interested in beauty and personal care products presented in convenient formats.

Flexible packaging remains popular with price-sensitive consumers in 2019, while rigid formats gain ground with high earners

Flexible packaging continued to be popular across multiple home care categories. The highest proportion of sales in the format was accounted for by laundry care products such as powder detergent and bar detergent in 2019, where flexible plastic and paper remained prevalent.

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