The Indian flexible packaging demand is expected to grow by 10% annually up to 2022, according to a new report.
Robert Gilfillan, research analyst at PCI Wood Mackenzie, said demand for flexible packaging in the Indian market is estimated to be nearly $5.6bn in 2017 and expected future demand to grow at nearly 10% p.a. over the next five years.
“India’s complex relationship between each individual end use sector and the wider economy mean we expect to see double-digit growth in certain sectors such as meat, poultry, fish, medical and pharmaceuticals, sectors that operate almost predominantly in the organised market,” said Gilfillan.
He said tobacco was a significant market in India is tobacco, but expected to see the volume of business conducted through the unorganised sector to diminish at a fairly rapid rate as the country pushes for a more structured and formal process for industry to operate in.
“Even in 2017, our market sources have indicated that there has been significant change in the market as businesses come to terms with the introduction of the Goods and Services Tax (GST), and the financial implications of not complying.”