India’s growing consumption of packaged food and demand for sustainable packaging have largely contributed to the growth of the food and beverage packaging industry. Moreover, rising e-commerce and food delivery businesses have also accelerated packaging consumption in India.

The packaging market of the food and beverage industry in India is anticipated to reach USD 86 billion by 2029. The market is booming at a CAGR of 14.8% annually.  

The majority of packaged food and beverages are driven by consumers between 18 and 40. This is giving manufacturers more opportunities to introduce new varieties. Let us uncover some of the key factors behind this market boom. 

Key Factors Helping the Boom in the Market

Now that you have received an Indian F&B packaging industry overview, take a look at the factors that are shaping the market:

●   Sustainable Packaging

Many manufacturers are moving away from traditional plastic to more eco-friendly materials. To make their products eco-friendly, they are choosing options like polylactic acid (PLA) and polyhydroxyalkanoates (PHA).

Production companies are also adopting recycling methods, such as closed-loop systems. Not only does it help to reduce waste, but it also eliminates the reliance on new raw materials.

●   Innovative Packaging Technologies 

To cater to the needs of young consumers, manufacturers are introducing state-of-the-art features in their packaging, such as freshness indicators, edible packaging and more. All the materials used in food and drink packaging align with global safety standards and FSSAI regulations.

●   Government Initiatives and Policy Impact

The Government of India has started several programs to improve the supply chains and logistics of the food and beverage sector. One of these programs is the Pradhan Mantri Kisan Sampada Yojana. It aims to aid in waste management and productivity-boosting.

Additionally, the Plastic Waste Management Rules include Extended Producer Responsibility. It allows manufacturers to take care of their products from production through to waste management and recycling.

Furthermore, the government offers tax incentives and subsidies to food and beverage companies using sustainable solutions. It is a part of the Green Packaging initiative. This encourages them to use environment-friendly packaging that meets international standards.

The Plastic Waste Management Rules also promote the gradual removal of single-use plastics and encourage the use of recyclable or compostable packaging materials.

Food and Beverage (F&B) Packaging Market Analysis  

With a focus on reducing agricultural waste and meeting the ever-evolving consumer needs, the Indian F&B packaging industry is reflecting steady growth. The sector is creating new avenues for innovative packaging solutions. These new-age possibilities not only cut down on waste but also make packaging processes more efficient.

In India, better living standards, increased wealth, and fast-paced urban lifestyles promote online food delivery and the popularity of packaged foods. Major food delivery platforms are seeing higher demand for their online food delivery services. They are striving to find ways to improve customer experience by using safe and convenient packaging.

Besides, the Government is tightening rules on plastic packaging waste to protect the environment. As a result, companies are switching to sustainable materials and practices. This shift is both challenging and beneficial, but that solely relies on how well the industry adapts to these changes.

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Industry Segmentation Study for F&B Packaging Industry 

Driven by trends like organic, natural, vegan, and GI-tagged products, the food and beverage sector in India has evolved from food sanitation to marketing to sustainability.

This vast market can be segmented depending on product type, application type, and region. Here are the details of the segmentation:

●   Product Type Segmentation

●   Primary Packaging: This refers to the packaging that is in direct contact with food or beverage. Such as:

○        Containers (Bottles, cans, cartons)

○        Flexible Packaging (Pouches, wraps, bags)

●   Secondary Packaging: This is used for packaging multiple items together, making them easier to transport. Examples are:

○        Boxes

○        Shrink Films

●   Segmentation by Applications

○        Packaged Foods:

■       Ready-to-eat meals

■       Snacks and processed foods

■       Frozen food

■       Confectionery and bakery items

○        Beverages:

■       Soft drinks

■       Dairy products (milk, yoghurt)

■       Alcoholic beverages (beer, spirits, wine)

■       Juices and health drinks

●   Regional Segmentation

The Indian F&B packaging industry also varies by region and cultural food preferences.

●   North India: Major consumption centers like Delhi, Punjab, and Haryana have a demand for packaged foods and beverages.

●   West and Central India: Maharashtra, Gujarat, Madhya Pradesh, Rajasthan, etc. are key markets for packaged snacks and beverages.

●   South India: Tamil Nadu, Karnataka, Andhra Pradesh and more have an increasing trend in packaged foods, dairy, and beverages.

●   East India: West Bengal, Assam, Odisha and others show a growing demand for processed and packaged food.

New Innovations in the Food and Packaging Industry (As per GOI)  

Research shows over 38%  of consumers opt for sustainably-packed foods and drinks, rather than traditional packaging. Businesses aim to leverage several forefront technologies to tailor revolutionary solutions. Take a look:

● Internet of Things (IoT): IoT devices elevate supply chain transparency and visibility. Real-time tracking ensures timely delivery, sustaining the freshness of food.

● AI-driven Forecasting: Since AI has the power to process extensive datasets, it can be used to forecast market demands.

● Blockchain: Blockchain imbues transparency and security in packaged food and beverage distribution. It furnishes verifiable records, promoting trust between consumers and companies.

Undoubtedly, there is a clear shift towards green packaging by using plastic-free mono-packaging materials. Various types of technologies are employed to make environment-friendly multi-purpose packaging.

This shift also affects the designs making them reusable or refillable. Current trends in biodegradable packaging include: 

● Corn Plastic: This type of plastic is made from corn kernels. It uses PLA (Polylactic Acid).  

● Bamboo: Bamboo grows quickly. Thus, it can be a great alternative to paper and plastic. Nowadays, companies are using bamboo for eco-friendly utensils like spoons, forks, knives, straws, and cups. 

● Wood and Plant Fibres: Cellulose from plants is used to make biodegradable packaging and paper. This fiber can easily be recycled into new paper products. 

● Mushroom: Eco-friendly packaging that can be made from mushrooms. This is made by mixing mycelium, the root system of mushrooms, with seed husks to create polystyrene or styrofoam packaging-like material.

How Tecnova Can Help?

Tecnova, India's most trusted management consulting firm, can help businesses source high-quality packaging materials and products from reliable Indian suppliers. We support international companies in the food and beverage industry with key consulting services, like

●   Market Research

●   Supplier Identification

●   Regulatory Assistance

●   Cost-saving strategies and more.

All this is taken care of while ensuring compliance with local regulations and international standards. Simply put, Tecnova bridges the gap between International companies and the Indian packaging market for cost-effective sourcing and innovative solutions.