Bulk Packaging Industry in India

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Bulk Packaging Market in India

 Growing at around 8 to 10% per annum, the packaging Industry in India stood at INR 1920 billion in 2019-20. Bulk packaging accounts for around 46% and is mainly concerned with safe transportation of goods. Paradigm shifts in retailing, logistics, warehousing and material handling systems, in the last two decades, have influenced the developments in the bulk packaging sector. Material reduction, space saving, and light weighting have an increasingly important role in the choice of bulk packaging material both from the perspective of reducing cost as well as from increasing environmental concerns.

The bulk packaging market in India was estimated at INR 892 billion in 2019-20. Bags and sacks as well as corrugated cartons are the leading bulk packaging formats accounting for around 36% and 31% respectively of the total market.

Bulk packaging market by package type, 2019-20

Source: MCG estimate

 The bulk packaging market in India is fragmented with a few large players and several small and medium sized players. Bulk package systems have witnessed shifts in package formats with the increasingly versatile use of flexible and rigid plastics substrates. Bulk packaging systems have witnessed many advancements and shifts in the recent years. On-demand tracking of shipments is a key area of progress as customers increasingly prefer to login to the internet to easily trace the journey of the package from the time of shipment to the delivery point. Standardization of bulk packaging across industry verticals has also gained traction as this reduces handling costs and decreases the need for specialized transport.

Spurred by exports and domestic growth in the agricultural produce & foods, bulk drugs & generics, chemicals & pesticides, and petroleum & lubricants, the Indian bulk packaging market has been growing ahead of the global markets and is expected to grow strongly in the coming years.