India’s Liquid Packaging Market has been gaining good momentum in the last four years due to the rapid growth in the consumer market, especially in Food and Beverages, Pharma, Liquor, Personal Care, and Household Care.
Based on Ken Research’s study on the Liquid Packaging sector of India, a shift towards sustainable packaging is expected to rise in the coming years. Here is a glimpse of how the material used for packaging, polymers will become the new normal in the packaging segment over the next few years.
1. The Indian liquid packaging market is over 37K crore industry registering growth of 7% in last 3 years
2. Players enjoy the freedom of switching the packaging materials of their products due to the variation in the price per unit
Pricing analysis between different packaging materials
- From a pricing/cost aspect, glass and metal cans can be easily considered by the customers to be substitutable/interchangeable. For instance, the cost of procuring glass packaging materials for packaging 200 ML of Thums Up by Coca-Cola stands at around INR 8. While the cost of procuring metal cans for packaging 200 ML of soft drinks by Coca-Cola stands at around INR 10. Thus, there is no significant difference from a pricing standpoint for companies like Coca-Cola that sells liquid in different packaging materials (glass, PET, metal).
- In fact, the price of PET bottles is much cheaper than that of glass bottles and is sold at around INR 3.5 per bottle. Thus, companies enjoy the liberty to switch between suppliers based on their requirement for packaging materials.
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3. Due to cost convenience and sustainability reasons, not only Coca-Cola but Alcoholic beverages, which traditionally relied on glass packaging are also slowly moving to PET and tetra packs.
Use Cases of same liquid being packaged in glass and other packaging materials
4. Pharma and beverage companies are also more invested in sustainable packaging solutions due to environmental concerns
Use Cases of same liquid being packaged in glass and other packaging materials
5. As a result, the Glass packaging segment is losing its market share to Metal and Tetra Pak, enabling sustainable packaging-the future of India’s Liquid Packaging sector.
The Future of Liquid Packaging
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