Mespack’s Anthony D’souza anticipates trends in 2024

Growth and projections in the Indian packaging market

Currently evaluated at USD 76-billion in 2023, the Indian packaging sector is expected to notch USD 128-billion by 2028 at a CAGR of 11.06%. And, a robust projection suggests an impressive CAGR of 26.7% from 2020 to 2025.

Commenting on the Indian food and beverage packaging industry, D’souza sheds light on trends driving this sector are urbanisation, rising disposable incomes and evolving consumption patterns. This industry will reach USD 86-billion by 2029 at a CAGR of 14.8%.

Laminates and flexible packaging emerge as the fastest-growing segments, with the paper packaging sector, constituting 63% of total paper demand. A notable trend in flexible packaging is stand-up pouches, especially for processed foods.

D’souza said, “The surge in packaging is fueled by the expanding consumer markets in processed food, personal care and pharmaceuticals. Recognised as one of India's fastest-growing sectors, packaging drives technological innovation across various domains, including agriculture and FMCG.”

“Contributing factors include population growth, higher incomes, changing lifestyles and preferences, intensifying the demand for innovative packaging solutions. Moreover, increased media penetration in rural areas through the internet and television underscores the packaging industry's pivotal role in shaping consumer preferences and market dynamics,” he added.

Government initiatives

D’souza mentioned, “The Indian government has launched a comprehensive national effort aimed at enhancing the packaging sector. The initiative involves the development of guidelines for packaging design and materials, promoting efficient bulk transportation methods and actively addressing the challenge of reducing packaging waste.”

In addition, centralised industrial activities are gaining impetus with the establishment of specialised logistic parks and packaging laboratories dedicated to design and testing.

Furthermore, the Indian government aims to improve the efficiency and competitiveness of the packaging sector and to contribute to the broader objective of promoting sustainability and environmentally responsible practices within the industry.

Introduction of EPR regulations and policies

In an environment where precision, agility, and responsiveness hold utmost importance, companies rely on Extended Producer's Responsibility (EPR) regulations as a guiding framework to navigate intricate workflows. 

D’souza emphasised, “As the flexible packaging sector transforms, complying with EPR regulations emerges as a strategic necessity, contributing to the development of a resilient and forward-thinking business ecosystem. Companies that adopt and integrate these regulations position themselves not only for regulatory compliance but also for heightened efficiency, minimised risks and a competitive advantage in the continually evolving marketplace.”

Packaging industry outlook in 2024

Post-Covid-19, there's a surge in demand for natural food ingredients, fueled by FSSAI regulations on nutraceuticals and organics. Packaging, evolving from protection to marketing and sustainability, adapts to trends like natural, organic, vegan, and GI-tagged products. 

“The Rs 20,000-crore annual market shift from loose to packaged items reflects this change. Embracing sustainability, the industry favours plastic-free and mono-packaging materials,” said D’souza.

To align with consumer preferences, focus on innovation, particularly in organic and health foods, is crucial. A noticeable trend towards paper, flexible and sustainable packaging, featuring natural materials like bamboo and plant fibres, caters to an ageing population's demand for convenient and sustainable packaging.