Beverage packaging market in India

Posted By Team MCG On


Increasing consumption of beverages coupled with the rising need for convenience is driving the market for beverage packaging in India. The Indian beverage packaging market is exhibiting robust growth with sustainable packaging being the need of the hour. Beverages accounted for 21% of the total consumer packaging market in 2014. Demand for consumer packaging from the beverage sector is expected to grow marginally ahead of other user sectors at around 12% till 2017. Main contributors to this growth include bottled water, fruit-based beverages and Carbonated Soft Drinks (CSD).

Beverage packaging: Break up by type (2014)

Beverage pack mark Pie chart

Rigid plastics and glass are the major materials used for packaging beverages, accounting for 70% of the market.PET is the major rigid plastic packaging substrate used to pack a wide range of beverages including CSD; fruit based beverages, bottled water. Commonly used pack sizes range from 250 ml to 2 litres PET bottles. An estimated 55% of the packaged water market is accounted by bottles while the rest was accounted by bulk packaging and pouches.

Wine and IMFL accounted for close to 60% of the demand for glass packaging in the beverage segment followed by beer at around 25%.Other major user includes carbonated soft drinks. Glass packaging for fruit-based drink sector is forecast to grow with a CAGR of 6.0% from 2012-13 to 2017-18. Parle Agro has launched its flagship brand Frootiin returnable glass bottles.

Paperboard packaging for beverages is primarily used to pack liquid milk and fruit juices & drinks. More recently, liquid cartons have expanded usageto include milk-based beverages and buttermilk among others.

The aluminium beverage can market in India is witnessing a growth rate of 20-21% p.a. CSD market which accounted for just around 30% of the beverage can demand during 2008-09 has witnessed high growth, presently accounting for over 60% of the total demand. Aluminium beverage cans of capacities 250 ml, 330 ml and 500 ml are commonly used.

Beverage sector including bottled water, CSD, fruit drinks and flavoured milk is the largest user of caps and closures. ROPP (Roll-on Pilfer-proof) Caps are used for glass, plastic and metal containers. Major user segments include alcoholic beverages accounting for over 50%. ROPP caps are multi-coloured and are broadly categorised as printed caps, top embossed caps, knurl-embossed chamfered caps and side-embossed chamfered caps.

Currently, Flexible packaging has limited usage in organised beverage packaging market in India and is expected to grow in the coming years.