India Fresh Food Packaging Market - Forecasts from 2022 to 2027

The Indian fresh food packaging market is expected to grow at a CAGR of 6.92% over the forecast period. The fresh food packaging market is growing in India due to an increase in demand for dairy products. India has a major share in the global milk supply and dairy products and is going to retain its position throughout the projected period. According to the Indian budget, milk production in the country has increased from 146.3 million tonnes in 2014-15 to 198.4 million tonnes in 2019-20. The annual growth rate of milk production was 6.27 percent in 2014-15, and it has since been steadily increasing. In 2019-20, milk production increased by 5.68% over the previous year. In (2019-20), milk availability per capita was 407 grammes per day. The growing production of milk is a reason for the growing demand for fresh food packaging due to the rising need for the transportation and export of milk & dairy products safe and in protective packaging to stopping from spoilage in transit. The growing domestic consumption and exports of dairy products, combined with stringent regulations across the globe regarding compliance with packaging standards is further driving the demand for packaging solutions. The market for fresh food packaging is also growing due to the increasing consumption and production of fish in the country. According to the Indian budget, India is the world's second-largest fish producer, accounting for 7.58 percent of global production. During 2019-20, India's fish production reached an all-time high of 14.16 million metric tonnes. The fisheries sector accounts for 1.24 percent of total GVA and 7.28 percent of total agricultural GVA. During 2019-20, marine product exports totalled 1.29 million metric tonnes worth Rs 46,662 crores. Therefore, an increase in the consumption and production of fish has increased the demand for fresh food packaging. The rapid growth of the tourism sector in India due to rich heritage sites and growing investments by the government for restoring them is increasing the demand for global restaurants in the region to cater to the diverse needs of tourists. This is increasing the demand for fresh food packaging in the country.

The Indian fresh food packaging market is facing restraints due to strict government rules and regulations regarding the use of packaging materials like the ban on the use of plastic for being non-biodegradable and causing harm to the environment. The rising prices of raw materials will further increase the cost for manufacturers, resulting in a slowing of the market's growth.

The India Fresh Food Packaging market has been segmented based on material and application. By material, the market has been segmented as plastic, paper and board, glass, and metal. By application, the Indian fresh food packaging market has been classified into poultry and meat products, dairy products, produce (vegetables and fruits), seafood, and others. By material, paper and board hold a significant market share due to the strict government regulations over the use of plastic and the increase in usage of eco-friendly packaging materials. By application, seafood and dairy products accounted for a significant market share in 2020.

Competitive Insights

Prominent key market players in the Indian fresh food packaging market include Sonoco Products Company, Amcor PLC, Mondi, AS Food Packaging Greendale, and India Packaging Products Pvt. Ltd. (IPP). Because of their strong brand image and product offerings, these companies have a sizable market share. Major players in the Indian fresh food packaging market have been covered along with their relative competitive positions and strategies. The report also discusses recent deals and investments made by various market participants over the last two years.

Recent Developmentss

• Researchers at IIT Roorkee developed ethylene-scavenging functional paper from pine needle waste in July 2022, raising the possibility of future sustainable packaging materials. Because of the porous structure and active compound incorporated in the paper, this paper-based product has the ability to scavenge ethylene gas. After harvesting, fresh produce produces ethylene gas, which is responsible for the rapid ripening of fruits and vegetables. This paper-based packaging, by scavenging ethylene gas, will increase the shelf life of fresh fruits and vegetables by at least one week over the standard shelf life. It will also maintain the nutritional value of fresh produce.
• Fruit importer IG International has formed a joint venture with Mumbai-based packaging company Esquire Corrugation to produce sustainable fresh produce carton packaging in June 2022. Esquire IG intends to produce 500-1,000 tonnes of fresh produce packaging for both domestic and global markets.
• iD Fresh Food launched iD Smart Sip Tender Coconut and iD Grated Coconut in coconut in February 2020, marking India's largest fresh food brand's first effort in finding sustainable packaging solutions for a greener and healthier future.

COVID-19 impact on India Fresh Food Packaging Market

The COVID-19 pandemic had an effect on the Indian fresh food packaging market. The pandemic caused a severe scarcity of raw materials for Indian paper mills. However, the demand for nutritional drinks, fresh and healthy food increased exponentially in India. As a result, Indian corrugated cardboard box manufacturers are working to keep transport packaging flowing to manufacturers of essential products, such as packaging for food and other consumer products, medical and pharmaceutical products, tissue, and hygiene products.

Segmentation

• By Material

Plastic

Paper and Board

Glass

Metal

• By Application

Poultry and Meat Products

Dairy Products

Produce (Vegetables and Fruits)

Seafood

Others