India Extruded Plastic Market is projected to grow at a CAGR of 4.00% to attain a market size of US$803.515 million by 2027, from US$610.480 million in 2020.
The major factors driving the market growth are rising demand for plastic packaging from e-commerce and the food and beverage sector of India, growth in the construction sector of the country, rising government initiatives, expansion of energy generation infrastructure, and growing demand from agriculture sector of the country. Additionally, rising investments in the residential construction sector of the country will further drive the overall market growth in the coming years. Additionally, the expansion of end-user industries and growing product innovations by key market players are projected to create lucrative opportunities for overall market growth. However, the COVID-19 pandemic and government regulations on plastic ban have severely affected the overall market growth. The market is segmented into- By Type, By End-User Industry.
India Extruded Plastic Market Drivers:
The growing population and high disposable income have increased the demand for extruded plastic across the E-commerce packaging industry in the country. The packaging sector is one of the fastest-growing markets due to the e-commerce boom. In the last decade, the total packaging consumption has surged by 200 percent, from 4.3 kilograms per person per annum (pppa) to 8.6 kg pppa (Source: Indian Institute of Packaging). Annually, India consumes around 12.8 million metric tons of plastics every year (Source: ASSOCHAM). Recent innovations and developments taken by key players will further boost market growth. For instance, Dow Packaging has come into an agreement with Specialty Plastics (P&SP) and Lucro Plastecycle, which is an Indian recycling firm for the development and commercialisation of polyethene (PE) film solutions made from recycled plastic in India. Moreover, the growing demand for rigid plastic packaging across the food and beverage sector of the country will further drive market growth in the coming years. The sales of dairy products, jams, fruits and vegetables, soft drinks, etc., are rising, which has witnessed the high growth for small-sized plastic containers, which in turn, is anticipated to drive the overall market growth across the country.
India Extruded Plastic Market: By End-User Industry
The growing infrastructure in the country is expected to drive the overall market growth during the forecast period. Government initiatives such as Bharatmala Pariyojana and PM Gati Shakti Master Plan are anticipated to drive the demand for extruded plastic across the construction sector of the country, which will further drive the overall market growth. For instance, the country's government has announced the launch of the Bharatmala Pariyojana program, which is focused on improving the efficiency of freight and passenger movement by developing economic corridors, feeder routes, border, and international connectivity roads, greenfield expressways, and port connectivity roads, etc. Under PM Gati Shakti Master Plan, the national highway network of the country would be expanded by 25,000 kilometres, for which the government has invested INR 20,000 crore in the construction sector of India. Furthermore, the increase in housing demand and luxury apartments in cities like Mumbai and Bangalore is expected to drive the overall market growth during the forecast period. Major companies in the construction sector of India are making collaborations, innovations, and acquisitions in the market, which is projected to contribute to the overall market growth significantly. For instance, an Indian hotel company has come into collaboration with TATA Projects Limited for the construction of its new ginger hotel in Maharashtra. In total, 371- rooms will be built-up in over 19,000 sq meters. The latest construction technologies and techniques will be used to construct the hotel. Additionally, the 100 smart cities mission initiative to improve the quality of life of people in the country will further contribute to the overall market growth.
The COVID-19 pandemic has slowed down the overall market growth in the country. During the COVID-19 pandemic, the construction sector of the country was severely affected due to supply chain disruptions, and many projects were halted in 2020 because of a lack of investments and lockdown regulations, due to which there was less consumption of construction materials and decreased demand for extruded plastic. However, there was a high demand for plastic packaging solutions in the e-commerce sector of the country. Because of the nationwide lockdown, consumers were mainly dependent on online shopping, which has given a boon to the e-commerce sector of the country. The market is still in the growing phase and is expected to surge in the coming years as well.
The market has been analyzed through the following segments:
Amber Group India
Plasopan Engrs. (India) Pvt. Ltd.
S.M. Extrusions Pvt. Ltd.
All our studies come with 2 months of analyst support.
We are in compliance with the global privacy laws.