Growing at 18% per annum, Country's plastic packaging industry is expected to reach $73 billion in the next four years, says a report.
The size of the industry in India is about $32 billion, which constitutes only 4% of the global packaging industry, said the joint report by FICCI and Tata Strategic Management Group (TSMG) on plastic industry.
The per capita packaging consumption in India is quite low at 4.3 kg, compared to countries like Germany and Taiwan where it is 42 kg and 19 kg, respectively, it added.
"In the coming years it is expected to grow at 18% per annum...The overall packaging industry in India has a huge growth potential and is expected to reach $73 billion in the year 2020," the report said.
The industry is driven by key factors like rising population, increase in income levels and changing lifestyles. Demand from rural sector for packaged products is being fuelled by increasing media penetration through the means of internet and television.
"Organised retail and boom in e-commerce will fuel growth of plastic packaging and per capita consumption to be doubled in five years," the report observes.
India is a growing market for plastics and consumes about 12.8 million tonnes of plastics annually against the global consumption of 285 million tonnes per year.
The plastics and polymer consumption is growing at an average rate of 10%. About 30,000 processing units with 1,13,000 processing machines have created manufacturing capacity of 30 million tonnes per annum in India.