Lack of a packaging machinery

The Indian e-commerce packaging market is expected to reach US$975.4 million by 2025, registering a CAGR of 13.8% during the period of 2020-2025. It was valued at US$451.4 million in 2019.

Owing to the rising population, increasing income levels, changing lifestyles, and growing economy, the demand for e-commerce packaging is growing in India, said a ResearchAndMarkets report the “India E-Commerce Packaging Market” on 2 Apr 2020.

However, regulation pertaining to the use of plastic and lack of exposure to good manufacturing practices is challenging the market growth.

The growth of plastic packaging in the e-commerce space is expected to be affected by the recent regulation on the ban of single-use plastics, which is expected to be enforced anytime in the future, once the discussion with all stakeholders concludes.

The other factor that is affecting the growth of the e-commerce packaging industry in India is the lack of a packaging machinery manufacturing ecosystem in the country.

Nevertheless, India is focusing more on sustainable solutions, which is increasingly becoming a business imperative, said the report.

With the growing awareness, the requirement for eco-friendly and sustainable packaging is steadily on the rise. With several billion parcels delivered every year, the threat of packaging waste is increasing due to which, the need for recyclable packaging material is on the rise.

The growing proliferation of online retailing and the emergence of omnichannel presence drives the market.

With the increase in the usage of the internet across the country, the penetration of online retailing is growing.

According to India Brand Equity Foundation (IBEF), internet users in India are expected to increase from 665.31 million, as of June 2019, to 829 million by 2021.

Furthermore, with rise of the omnichannel business model in the country, where one can shop both online and offline, has also boosted the e-commerce market.

Omnichannel retailers, such as Shoppers Stop Ltd and Infiniti Retail Limited Croma, are experiencing growth in their sales.

Moreover, they are providing faster delivery with lower shipping cost of packaging, as they can ensure delivery from their offline stores in the city.

Key vendors are: Packman Packaging, U-Pack, Ecom Packaging, Avon Pacfo Services LLP, TGI Packaging Pvt Ltd, Kapco Packaging, Total Pack, Storopack Ind Pvt Ltd, Oji India Packaging Pvt Ltd, Astron Packaging Ltd and B&B Triplewall Containers Limited.


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