New Delhi, Jan 19 (ANI): According to a report prepared by FICCI and Tata Strategic Management Group (TSMG) on plastic industry titled ‘Plastic Packaging – The Sustainable Choice’, packaging is one of the fastest growing industries and comprise of 42 percent of packaging with the combination of rigid and flexible plastics in packaging.
It has grown higher than GDP in most of the countries. In developing country like India, it grew at a CAGR of 16 percent in the last five years and touched USD 32 bn in FY 15. The Indian packaging industry constitutes 4 percent of the global packaging industry. The per capita packaging consumption in India is quite low at 4.3 kgs, compared to countries like Germany and Taiwan where it is 42 kgs and 19 kgs respectively.
Overall, the Indian packaging industry is valued at over USD 32 bn and offers employment to more than 10 lakh people across the country through 10,000 firms approx.
In the coming years it is expected to grow at 18 percent p.a. wherein, the flexible packaging is expected to grow at 25 percent p.a. and rigid packaging to grow at 15 percent p.a. The overall packaging industry in India has a huge growth potential and is expected to reach USD 73 Bn in the year 2020.
In India, the industry is driven by key factors like rising population, increase in income levels and changing lifestyles. Growth prospects of end-user segments are leading to rise in the demand of the plastic packaging industry. Demand from rural sector for packaged products is being fuelled by the increasing media penetration through the means of internet and television.
Out of 30,000 processing units, about 75 percent are in the small-scale sector. The small-scale sector, however, accounts for only about 25 percent of polymer consumption. The industry also consumes recycled plastic, which constitutes about 30 percent of total consumption.
Challenges and Risks:
However, there are quite a few challenges and risks. High inflation rate and rising prices, lack of skilled workforce, difficulty in procuring raw material due to weak infrastructure, growing environmental concern, effective recycling of mixed plastic waste and plastic recovery are some of the issues plaguing the industry.
Going ahead recycling and reuse of plastics will be an important step towards fostering innovation and sustainability. Also increased awareness through help of industry groups and Government could help address some of these challenges.
Further, India is emerging as the most favored destination for organized retail destination in the world. And also the presence of E-commerce is expanding rapidly and is bringing around a revolution in the retail industry.
Retailers are now leveraging digital retail channels thereby enabling wider reach out to customers with less amount of money spent on real estate. Therefore, organized retail and boom in e-commerce offers huge potential for future growth of retailing in India which in turn is pushing the growth of packaging sector. (ANI)