The Market for Paperboard Packaging in India (for Consumer Markets)

Posted By Team MCG On

Paperboard packaging has gained prominence in the last two decades, with the emergence of modern retail formats where visual appeal, shelf life and unique brand identity have taken the centre stage. Paperboard packaging offers all these advantages and more – it is consumer-friendly, provides excellent product protection, is lightweight, easy to transport &stack and easy to dispose of. Most importantly, paperboard packaging is biodegradable. With increasing consumer awareness and focus on ‘green packaging’, paperboard is gaining ground in the packaging industry.

In consumer packaging, paperboard is mainly used for the manufacture of printed folding cartons (87% of the market), liquid packaging cartons, composite containers and paper cups. The Indian paperboard packaging industry accounted for around 21% of the total consumer packaging market that was valued at INR 472 billion in 2012-13. Paperboard packaging, valued at INR 100 billion, is forecast to grow at 11.4% per annum over the next five years.

Printed folding cartons can be classified as mono cartons, lined cartons and bag-in-box cartons. Foods (branded tea, dairy products, breakfast cereals & convenience foods, spice powder, etc.) and pharmaceuticals are the major applications for printed cartons. Other key applications are personal care products, ready made garments, mobile phones & accessories, other electrical & electronic products and so on.

Printed folding cartons packaging industry in India, 2012-13 (%)
Market size : INR 100 billion

The Market for Paperboard Packaging in India (for Consumer Markets)
Source: MCG Research

Liquid packaging cartons combine paper board, films and foil and offer extended shelf life to the product packaged. Advent of liquid packaging cartons has opened up new markets in India. The entry of large brands into the fruit juice sector and dairy companies launching UHT milk and several other variants augur well for this sector. Some of the major end-use applications are fruit juices (account for 70% of the market), dairy products (milk, flavoured and soy milk, lassi), edible oil, tomato puree, etc. Recently, liquor (whisky) has been introduced in liquid cartons.

Some of the major converters of printed folding cartons include ITC (Printing & Packaging Div.), Borkar Packaging Pvt. Ltd., Rollatainers Ltd., Parksons Packaging, TCPL Packaging Ltd., Bharat Box Ltd. and International Print-O-Pac Ltd. in India. Tetra Pak is a major producer of liquid cartons in India.