2016 Total Packaging Market Size (million units):

268,960

2011-16 Total Packaging Historic CAGR:

9.9%

2016-21 Total Packaging Forecast CAGR:

7.1%

• Packaging continued to register positive performance in India during 2016. Growth was driven by the recovering economy and falling inflation.
• Various new packaging formats were launched during the year, though not all were successful, as consumers remained price-conscious and continued to seek value for money. This increased demand for bulk packs, multipacks and smaller packaging, and discounting remained prevalent.
• Beauty and personal care packaging were influenced by the need for convenience.

• Polarization in pack sizes remains the major trend in food and beverages packaging.  Multi-packs and larger pack sizes benefit from a growing affluence, which leads Indian consumers to make fewer trips to the grocery. This trend is evident in most food and beverage categories, but most obvious in categories of juice, tea, dairy, rice, and edible oils.
• In other categories, sales move towards smaller formats due to price inflation, making products less affordable for low-income households. Several smaller packs keeps food fresher for longer than one larger pack, an important consideration as increasing numbers of people go grocery shopping fortnightly or monthly.
• In alcoholic drinks, polarization is most evident. 1,000ml PET bottles grew in beer, with total unit volumes rising 47% CAGR. 51% total unit volume growth was recorded in 1,000ml PET bottles in beer, suggesting even higher growth rates during the forecast period.
• Across packaged food, traditional packing materials such as glass and metal are being abandoned in favor of flexible packaging, which offers reduced costs and are lighter and space-efficient. This trend is now spreading to processed meat and seafood, and processed fruit and vegetables, yet records the strongest growth rates in baby food.

• India regulates cosmetic manufacturing, requiring a license and production in the presence of qualified technical staff.
• Health warnings for tobacco products Cigarette packs must have three warnings and three pictorial warnings, and a separate warning plus four pictorial warnings on all smokeless tobacco products with health warnings to cover 85% of of all cigarette packs.
• Food scandal prompts review of labelling guidelines for packaged food After issues emerged with Nestlé’s Maggi brand in 2015, the Food Safety and Standards Authority of India (FSSAI) issued guidelines to ensure quality and food safety and security.

• Swachh Bharat (Clean India) initiative To increase awareness of recycling, waste reduction, cleanliness, and the environmental impacts of failing to adopt recycling. The government sought assistance of leading industries to achieve the target by 2019.
• Eco-friendly beauty and personal care products become prevalent Social media plays a crucial role in boosting awareness of recycling and eco-friendly products. The accelerated substantially towards the end of the review period and most products are now widely online.
• Rising awareness of recycling and waste segregation The second half of the review period saw numerous state governments and municipal authorities launch waste segregation initiatives to promote the segregation of waste into paper, plastic, metal and wet and promote recycling.

• Rising affluence spurs premium packaging. Premium products are seen across categories in beauty and personal care, packaged food, confectionery, alcoholic drinks, and soft and hot drinks, with status signaled through prestigious packaging with more emphasis on glass bottles and high-end HDPE bottles.  Labelling is brighter with dark and metallic colors and matte finishes. The economy is expected to continue performing strongly for the foreseeable future.
• Natural, herbal, and Ayurvedic products influence packaging Growth in demand for beauty and personal care products with natural, herbal or Ayurvedic positioning influences packaging and labelling trends. Products with explicit Ayurvedic positioning experienced a significant increase in demand over the course of the review period, with ingredients such as turmeric, sandalwood, aloe vera, henna, seaweed and amla trending as brands highlight ingredients on their packaging.