PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1557284
PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1557284
The Indian fresh food packaging market is estimated to be around US$2.886 billion in 2024 and is anticipated to grow to US$3.520 billion by 2029 at a CAGR of 4.05%.
Food packaging is a dynamic process of preparing food for safe transportation, distribution, storage, retailing, and delivery. Various types of materials are used for packaging the food, like low and high-density polyethylene, aluminum, tin, and cardboard.
Multiple methods of food packaging are available in the market, like aspect packaging, where food products, especially liquids, are packed into previously sterilized containers and cans. Foods like soups, beans, and mais are packed into cans made of steel, tin, or aluminum. Other methods of food packaging include trays, bags, boxes, wrappers, and cartons.
The fresh food industry in India has observed a massive boost, which is majorly driven by the nation's growing agricultural produce. The nation is among the leading agricultural-producing markets in the globe. India's food and food products exports reached about US$ 55.1 billion in 2022, according to the Observatory of Economic Complexity (OEC), of which the export value of frozen meat and fresh meat was estimated to be about US$11.2 billion. The nation's horticulture production has grown significantly over the past few years, boosting the fresh food packaging industry. The Ministry of Agriculture and Farmers Welfare of India stated that the nation's production of fruits was estimated to be around 108.34 million tons in 2022 and 107.51 million tons in 2021. The vegetable production of the nation also grew by about 3 million tons in 2022, reaching 212.91 million from 209.14 million tons in 2021.
The fresh food packaging industry in India is expected to face significant obstacles to growth due to the implementation of bans and strict government policies regarding the use of packaging materials. The nation's government introduced a ban on the use of plastic material as raw material, as plastic material is a non-biodegradable material and can increase the effect on the environment. These bans on various raw materials cause the price of the raw material to rise, further slowing market growth.
The increase in the dairy and its products market is expected to boost the nation's fresh food packaging market. Dairy and its products are easily perishable products that need to be packed and shipped as quickly as possible. India is among the biggest producers of dairy in the global market. According to InvestIndia, India exported a total of 67,572.99 MT of dairy products to the world, valued at US$284.65 million, in 2022. This data also reveals that India currently can process about 126 million liters each day. The high volume of dairy processing in the nation increases the market demand for dairy packaging in the nation. Similarly, India is among the biggest suppliers of dairy products like cheese, butter, yogurts, and other frozen products in the global market. The increasing export of dairy and its related products is also expected to push the demand for the nation's fresh food packaging market.
Similarly, in 2021, the nation's marine products export was estimated at about US$7.7759 billion, which increased to about US$8.094 billion in 2022. The marine products, like shrimps, fish, and shells, among others, are processed and packed in quick succession, which prevents them from spoiling, and are shipped globally. The increase in the nation's marine product export is also expected to boost the fresh food market's growth.
India Fresh Food Packaging Market Restraints
The government of India has issued various bans regarding the use of multiple packaging materials, like plastics, for the packaging of fresh food in the nation. The government's aim in banning recycled plastic material is to ensure food safety in the nation, along with reducing the effects on the environment. The government's bans on such materials result in an increase in the cost of packaging fresh food materials in the nation, challenging the growth of the industry.