The country’s packaging industry is growing at an annual rate of more than 15 per cent,driven by high demand for processed food and other consumer areas says a study.
According to a review study released by industry chamber Assocham and investment and business research agency Aranca here today,the packaging industry is presently valued at USD 15.6 billion (about Rs 85,000 crore).
The key drivers of the growth are increasing disposable income,rising consumer awareness and demand for processed food. Besides,the multinational giants are taking rapid strides in the food,beverages,cosmetics,toiletries and pharmaceuticals space,it added.
The study said the sector holds great opportunities for large players,however,there are challenges due to lack of regularity clarity arising from multiple legislations that define the sector.
There is a need to meet more stringent packaging norms laid down by the entry of global players such as Walmart and the rising consumer awareness on sustainable packaging which requires a shift towards green materials,it said,stressing upon the need for more investments in research and development.
According to industry estimates,there are more than 22,000 registered packaging companies in India of which more than 85 per cent are small and medium units.
The organised sector in India accounts for about 50 per cent of the volumes,while,the balance is highly fragmented and distributed,the study said.