India Molded Pulp Packaging Market Size, Share & Trends Analysis Report By Source (Wood, Non-wood), By Pulp Type (Recycled, Virgin), By Technology (Thermoformed, Processed), By Application, And Segment Forecasts, 2020 - 2028

Report Overview

The India molded pulp packaging market size was valued at USD 240.6 million in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 12.1% from 2020 to 2028. Molded pulp packaging products are expected to gain popularity in the country on account of increasing awareness about waste management and recycling coupled with increased demand for sustainable packaging. The rising trend of on-the-go, single-serve, and ready-to-eat food products is expected to be one of the key factors fueling market growth. In addition, growing demand from customers as well as foodservice operators for sustainable packaging products including trays, clamshells, and containers among others is anticipated to further enhance the market growth. Stringent regulations concerning single-use plastics are expected to enhance the growth of the market in India over the forecast period.

In 2021, the Ministry of Environment, Forest, and Climate Change has unveiled draft amendments to the Plastic Waste Management Rules that propose to ban several categories of single-use plastics. The amendments are intended to reduce plastic waste generation and eliminate single-use plastic by July 1, 2022. As a result, sustainable packaging manufacturers are expected to witness rapid growth in the coming years. Thick wall pulp packaging products are manufactured through an open mold and require oven drying.

The products manufactured using this technique have a smooth surface on one side and an unfinished surface on the other side and are commonly used in end caps or trays for packaging industrial products. The raw material is the key factor influencing the texture, color, and performance of the packaging. Molded pulp packaging products are made from cellulose fibers mixed with water, which forms an aggregate called the pulp. The common sources of cellulose fibers are recycled paper, recycled cardboard, and natural fibers.

Natural fibers, such as bamboo, straw, and bagasse, are gaining high demand for manufacturing such products. In India, a majority of the manufacturers catering to the foodservice industry prefer baggage on account of its easy availability and stable price structure, unlike wood pulp. A major share of recycled pulp-based molded pulp packaging manufacturers in India is small-scale & unorganized and cater to egg and fruit packaging applications. Increasing prices of paper waste in India is expected to act as a key barrier to the growth of market players.

Source Insights

The wood pulp source segment accounted for a revenue share of over 74% in 2020. In India, hardwood used by the pulp and paper industry is generally sourced from eucalyptus. Other hardwood pulp sources include Poplar, birch, and maple. India imports hardwood pulp from Asian countries, especially Indonesia and Malaysia. Softwood has a high cost compared to hardwood and non-wood pulps, thus limiting its application in the market in India. It is observed that the prices of virgin wood pulp are increasing significantly, especially after the COVID-19 pandemic.

The wood pulp segment witnessed a growth of over 40%, in terms of price. Such factors are expected to limit the growth of wood-based products over the projected period. Packaging materials, such as foodservice disposables, directly come in contact with food items and thus, need to be manufactured only from virgin pulp, thereby, driving the demand for non-wood pulp in this application. A few Indian manufacturers mix bagasse with virgin wood pulp to improve the strength of the final product for manufacturing tableware products. With the rising concerns about deforestation, the demand for non-wood pulp is expected to grow at a fast pace.

Pulp Type Insights

Virgin pulp accounted for the largest revenue share of 56.39% in 2020, on the back of its superior processability and appearance compared to its other counterparts. Virgin hardwood pulp is preferred for applications where rigidity is a key parameter. Manufacturers often mix these raw materials in different quantities to get the desired products, keeping the pricing factor into consideration. Virgin softwood pulp is the most desirable raw material for manufacturing molded packaging products, however, its actual usage in application areas is limited due to its high cost.

Recycled pulp is also gaining momentum in the Indian market owing to the increasing efforts for recycling waste or discarded paper. The increasing importance of sustainability and awareness regarding deforestation and plastic landfills are likely to support the growth of recycled pulp for packaging applications. Energy consumption required for processing recycled pulp is lower compared to virgin pulp; however, recycled pulp involves various chemicals that can have environmental impacts. This is likely to be an area of concern for the manufacturers dealing with recycled pulp.

Technology Insights

Transfer molded packaging accounted for the largest revenue share of 54.06% in 2020. It is popular among all the molded pulp packaging types owing to its properties like high weight tolerance and strength. The products manufactured using this technology are gaining momentum in food packaging applications owing to their air permeability and hygroscopic properties.

Thermoformed molded packaging is anticipated to witness the fastest CAGR over the forecast period. Over the recent years, thermoformed molded pulp packaging products are standing as an alternative for thermoformed plastic packaging products. A shifting trend from plastic thermoformed packaging to eco-friendly packaging has been observed in the country, which is expected to support the segment growth during the forecast period.

Application Insights

The foodservice segment accounted for the largest revenue share of 56.32% in 2020 owing to the increased awareness among consumers regarding health and environmental hazards associated with plastic products, which compelled market players in the foodservice industry to invest in biodegradable packaging solutions. The growth of the online food-tech industry in India, increasing demand for eco-friendly packaging, and upcoming positive government outlook for sustainable packaging are expected to show high potential for disposable packaging solutions in the Indian market.

The electronics manufacturing companies are focusing on consumer experience while unboxing the products. Increasing consumer attention towards sustainable packaging coupled with government regulations has been pushing electronics companies to opt for environmentally friendly packaging solutions. Electronic giants, such as Samsung and HP, have already started using molded pulp packaging products for a few of their product ranges.

The demand for these products in India is in a nascent stage. The lack of awareness regarding the products and underdeveloped waste disposable systems at healthcare facilities are the key factors limiting the use of molded pulp disposable products. Furthermore, the availability of labor with minimal wages and lack of importance for hygiene are hampering the demand for single-use disposable products in medical applications.

Key Companies & Market Share Insights

The market is unorganized and is characterized by the significant presence of small- and medium-scale players. Companies offer a wide range of products that are available in a variety of shapes, sizes, and colors. Moreover, manufacturers also offer customized products to clients for use in electronics and industrial applications based on their specific requirements. However, most of the companies dealing in foodservice products do not caterto other industries, such as electronics and healthcare, as different machinery/molds are required to manufacturedifferent products. Some of the prominent players in the India molded pulp packaging market include:

• Shree Kias Pack

• Neeyog Packaging

• Pulp2pack

• SR Pulp

• Maspack Ltd.

• Rajdhani Polypacks

• Yash Pakka Ltd.

• Ecoware

• Discover India Packaging

• Dinearth Eco-Friendly Tableware

• Prosper Universal Pvt.Ltd.

• SM Group

• KSP Fibre Products Pvt. Ltd.

India Molded Pulp Packaging Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the country level and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the India molded pulp packaging market report on the basis of source, pulp type, technology, and application:

• Source Outlook (Revenue, USD Million, 2017 - 2028)

  • Wood Pulp

  • Non-wood Pulp

• Pulp Type Outlook (Revenue, USD Million, 2017 - 2028)

  • Recycled

  • Virgin

• Technology Outlook (Revenue, USD Million, 2017 - 2028)

  • Thick wall

  • Transfer wall

  • Thermoformed

  • Processed

• Application Outlook (Revenue, USD Million, 2017 - 2028)

  • Food Service

  • Electronics

  • Healthcare

  • Industrial

  • Others