India Corrugated Packaging Market Future Outlook to 2027 – Segmentation by Type of Boxes, by Structure, by Domestic and Exports, by End User

Overview

Executive Summary 
India's Corrugated Box Market on the basis of revenue, grew at a double-digit CAGR during 2016-2021. After the virus outbreak, an increase in hybrid mode usage resulted in an increase in the number of businesses entering the e-commerce market. The packing options that are typically utilized for moving products include corrugated boxes. They are made out of multi-layered paperboard sheets made from wood-derived cellulose fibers. The demand for packaging has significantly expanded in India as a result of the ongoing growth of consumer markets, particularly in the processed food, personal care, and pharmaceutical end-user industries. Packaging is one of the sectors in India that is growing the fastest. Over the past few years, the industry has been a key driver of innovation and technology, benefiting numerous manufacturing sectors, including agriculture and the fast-moving consumer goods (FMCG) sectors. 

Between June and August 2020, more than 40% of India's urban active internet users were e-commerce customers. Nearly half of these are first-time internet consumers from Tier 1 and Tier 2 cities. Amazon and Google are the two websites that new users prefer to utilize for discovery. Only 22% of India's urban active internet users had made any online purchases prior to the virus outbreak.

The number of daily orders placed across India significantly increased due to e-commerce being one of the most in-demand businesses during the epidemic. As the number of online orders expanded, so did the demand for corrugated packaging boxes. The increase in e-commerce transactions is being driven by the rise of first-time purchasers and the adoption of a digital-first approach. Social estrangement has led to a considerable rise in first-time online buyers.

There are around 22,000 businesses in India's extremely fragmented packaging sector. However, between 80% and 85% of businesses are small to medium-sized enterprises, and only 15% of the main package manufacturers account for roughly 70% of the total revenue. In India, there are 600 to 800 makers of flexible packaging, however, the majority generate less than 250 tonnes annually. 

COVID-19 Impact: The virus outbreak had a mixed effect on the India Corrugated Box sector. The ICCMA's members experienced the Covid-19 outbreak to varying degrees according to their clientele. A substantial decline in demand was felt by producers of goods for the automobile, electronics, consumer durables, and consumer discretionary industries. But an ordinary increase was seen in the factories that manufactured consumer items. However, the growth of the eCommerce sector during the COVID-19 era was quite advantageous, especially for the companies who serviced this market.

Corrugated Box Market Segmentation
By Type: India Corrugated Packaging Boxes come in four main varieties: 3PLY, 5PLY, 7PLY, and Others (9PLY). The 5-Ply type of box has taken over the market since it is now produced using completely or semi-automatic equipment, increasing the box's strength and replacing the 7-Ply and 9-Ply types of boxes. However, as a result of rising raw material costs due to the virus outbreak, consumers are switching to 3-ply corrugated boxes. 

By Distributional Channel: India's Corrugated Packaging Box market is majorly dominated by the unorganized sector led by local ginners, but in recent years the consumer is rapidly shifting toward branded players. With the rising demand for high-quality products among Indian consumers, the organized sector is expanding. 

By End User: The India corrugated packaging box market is primarily dominated by FMCG, followed by Chemical and Pharmaceuticals, Light and Electrical Products, Automobile, eCommerce, Textiles, and Others. The country's thriving e-commerce business, which is now dominated by electronics, books, and fashion, is steadily gaining popularity with everyday consumer goods like shampoo, deodorants, makeup, and even toilet cleaners.

Future Growth: The India Corrugated Packaging Box Market is expected to witness tremendous growth registering a CAGR growth of 13% from 2022-27. Specialized packaging supplies including plastic bottles, bags, and boxes will be more in demand as India becomes more industrialized. The government has also set goals for recycling and waste reduction. As a result, companies that provide eco-friendly packaging materials will have lots of room to grow as new regulations are implemented.

Scope of the Study
Makreo research has published a study on the packaging market specific to corrugated boxes titled, “India Corrugated Packaging Market Future Outlook to 2027 – Segmentation by Type of Boxes, by Structure, by Domestic and Exports, by End User”. The study evaluates corrugated packaging market demand and production facts with a detailed assessment of past and present market trends. The market has witnessed many shifts in the recent past that have impacted the profit margins of the players but also accounted for rising demand. E-commerce is an emerging sector in the country that has given a significant push to the corrugated box demand. The report is the right blend of qualitative and quantitative factors with macroeconomic and microeconomic assessment. Competition has also been studied to verify our assessment using the bottom-up approach.

India Corrugated Packaging Market Segmentation
•    India Corrugated Packaging Market

• By Type
  • 3 PLY
  • 5 PLY
  • 7 PLY
  • 9 PLY
• By Mode
  • Domestic
  • Export
• By Structure
  • Organized
  • Unorganized
• By End User
  • FMCG
  • Chemical & Pharmaceutical
  • Electrical Products
  • Automobile
  • eCommerce
  • Textile
  • Others

• Indian eCommerce Industry

Companies covered in the India Corrugated Packaging Market Report