1.  The Indian liquid packaging market can be divided into five major categories with an overall growth of 9% between FY’19 and FY’22

The Indian Liquid Packaging Industry is fragmented with a large number of unorganized player operating in the market. The packaging industry has been segmented on the basis of type of packaging such as Tetra Pak, Glass, Metal, PET and others. Currently, the liquid packaging market in India has grown at a CAGR of 7% over the last four years, majorly due to the increasing demand from the end user market, which drives the demand for liquid packaging including firms from F&B, Pharma, Liquor, Personal Care, Household Care and Industrial sector.

2.  Factors influencing entry into liquid packaging and glass packaging space

Factors influencing entry into the liquid packaging space include government regulations, capital requirements, etc. For instance, government regulations, regarding the use of plastics, are posing challenges for the new market players, such as the government of India is mulling a ban on the single-use plastics. However, favorable policy framework, like the Laghu Udyog Scheme and other existing government schemes on MSMEs, are facilitating entry of the new players.

There are three major factors that are required for setting up a glass plant:

The Technology and Equipment, which are available off the self
Raw Material accessibility.
Reliable Electricity, Fuel Supply, which are required for continuous operation.

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3.  Market dynamics indicating more preference for packaging materials like that of Tetra Pak and PET bottles

In retailing, as trends like drone delivery come into being, Tetra Pak will hold an advantage over glass and tin packaging as “packaging is lighter” . In terms of Co2 emission at the production stage, Tetra Pak cartons are the winner, followed by plastic, then aluminum, and then glass is the worst. Almost all households in India dump their waste in a single bin instead of segregating glass, metal, paper wastes and hence all these end up in landfills thereby making it difficult to get glass culets.

Ragpickers in India picks up a bottle of glass and a bottle of plastic, the bottle of glass is around 400gm; the bottle of plastic is around 40gm. So, the economics of rag-picking or economics of recyclability doesn’t favor glass.

For more insights on the market intelligence, refer to the link below:-

https://www.kenresearch.com/automotive-transportation-and-warehousing/logistics-and-shipping/india-liquid-packaging-market/596200-100.html

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