Folding Carton Market Growing at 4% CAGR to hit $47B by 2020

The global market value of the packaging industry was worth $73825.3 million in 2012 which is projected to reach $25796.6 million by 2018, growing at a CAGR of 5.1%, from 2013 to 2018. India’s current share in the global packaging industry is 4.4%.
One of the major trends in the folding carton market is increase in technological innovations wherein with the use of the latest technologies and designs, vendors are launching new products to address the growing demand for folding cartons. The analysts forecast the global folding carton market to grow at a CAGR of 4.12% during the period 2016-2020.
Growing demand for packaged foods products is driving the growth of the folding carton market. This increase in demand is a result of the rise in population and increase in disposable income of consumers in many parts of the world. This will also lead to a rise in demand for folding cartons used for packaging.
The food products segment dominates the folding carton market and will account for close to 27% of market share by 2020. Increased demand for convenience foods from consumers around the globe and organized retailing has resulted in higher demand for folding cartons. Food vendors are under pressure to offer products with a long shelf life and attractive packaging to gain customer attention. The APAC region accounted for the largest market share of close to 42% during 2015.
The Indian packaging industry is rapidly growing and is spanning across various end-use segments like food and beverages, healthcare, hygiene and home-care among others. The annual turnover of Indian packaging industry is $33.8 billion and is expected to grow at 15%. There are more than 22000 companies registered in the Indian Packaging industry, of which 85% of them are MSME’s. These MSME’s are involved in low value packaging activities like filling, conversion and production.
The packaging market in India seems set for the next level of growth. Strong favourable demographics aside, factors such as increasing disposable income levels, rising consumer awareness and demand for processed food, and the multinational giants taking rapid strides in the food, beverages, cosmetics & toiletries and pharmaceuticals space, are expected to be the key drivers of this growth story. These factors are forcing both packaging suppliers and end-user industry to shift from bulk packaging to retail, and unit-level and small-sized packaging. In addition, exploding organized retail growth and newly relaxed Foreign Direct Investment (FDI) norms in retail and other sectors, augur well for packaging market in India.
The Indian packaging industry is broadly classified into rigid packaging and flexible packaging. Rigid packaging is composed of 80 percent of the market and consists of metal containers, wooden crates, plastic containers etc. Flexible packaging is composed of the remaining 20 percent and comprises of jute, cotton/plastic bags, pouches and paper.
India Folding Carton 2017 is the first ever dedicated exhibition and conference for the carton & box making industry in India and it will be held from 14-16 September 2017 @ India Expo Mart, Greater Noida, Delhi NCR. The trade show will showcase best of solutions from manufacturers and dealers of pre-press equipments, carton making machinery, printing machinery and post-print equipment. Important segments such as designing software solutions and raw materials providers will also be present during the event.