The Indian food and beverage packaging industry, which is experiencing an impressive annual growth rate of 14.8 per cent, is on track to achieve a remarkable milestone by reaching USD 86 billion by 2029. This growth is attributed to swift urbanization, escalating disposable incomes, and evolving consumption patterns within the country. The All-India Food Processors Association has highlighted these trends, emphasizing the substantial impact they have on the industry’s expansion.
The aftermath of the COVID-19 pandemic has spurred an increased demand for natural food ingredients, providing a substantial boost to the sector. The sector is also being propelled by the novel regulations introduced by the Food Safety and Standards Authority of India (FSSAI) for nutraceuticals and organic foods. The role of packaging has transformed from mere protection to encompassing marketing and sustainability strategies. Emerging trends such as natural, organic, vegan, and GI-tagged products are significantly reshaping the industry’s landscape. Prabodh Halde, Chairman of the All-India Food Processors Association’s Western Region, underscored these points during a statement at the conclusion of the Food Ingredients (Fi India) and ProPak India events.
The organized packaged ingredient market, currently valued at approximately Rs 20,000 crore annually, reflects a shift from loose commodities to packaged products. Halde presented these insights during the 17th edition of Food Ingredients (Fi India) and the 5th edition of ProPak India, organized by Informa Markets in India from August 17–19.
The events garnered substantial participation, with over 230 exhibitors and more than 1,000 brands at Fi India and 85 exhibitors and over 300 brands at ProPak India. Notably, international exhibitors from various countries, including the Netherlands, Denmark, France, Belgium, the USA, Poland, Japan, Hong Kong, Singapore, and Thailand, also took part in the exhibitions.
Halde emphasized, “The Indian food and beverage packaging industry’s current value stands at USD 32 billion in 2022, with projections indicating a remarkable CAGR of 14.8 per cent to reach USD 86 billion by 2029. The industry’s commitment to sustainability is exemplified by the shift towards plastic-free and mono-packaging materials.”
Anticipated to generate nine million jobs by 2024, the industry is set to witness exponential growth. By 2030, India’s annual household consumption is poised to quadruple, establishing the nation as the fifth-largest consumer globally. The industry’s overall size, currently estimated at USD 322 billion, is projected to surge to USD 543 billion by 2025, exhibiting a CAGR of 14.6 per cent.
To adapt to evolving consumer preferences, the industry should focus on innovating and developing new products, particularly within the organic and health food categories. Halde elaborated that the sector’s vision for the next five to ten years should encompass increasing its contribution to the country’s GDP from the current 8 per cent to an impressive 20 per cent.