Packaging industry to grow at CAGR of 12.3%

MUMBAI: The country's packaging industry is expected to grow at a compounded annual growth rate of 12.3 percent over the next 4 to 5 years, far ahead of the average growth rate in other global markets.

"The packaging industry is expected to grow at CAGR of 12.3 percent during the next 4 to 5 years to become the 4th largest global market, with sales of USD 42.7 billion," Union Minister of State for Commerce and Industry D Purandeswari said after inaugurating Indiapack-2013 exhibition here.

India was the 6th largest packaging market in the world in 2011 with sales of USD 24.6 billion.

India's growth rate would be far higher than the world average growth of 6 percent per annum in the next few years, Purandeswari said.

The 4-day Indiapack 2013 has 11 exhibitors from US, Poland China, Germany, Netherlands, Denmark, Australia, Japan and Taiwan besides about 120 exhibitors from state governments.

Director of the Indian Institute of Packaging N C Saha said there are about 22,000 packaging companies in the country, comprising of raw material manufacturers to machinery suppliers to ancillary material out of which about 85 percent of them are MSMEs.