The Indian printing and packaging industry is rebounding strongly after the COVID-19 downturn, with strong growth in the packaging sector and growth in commercial printing. In India, Ahmedabad-based Letra Graphix has installed the Gallus Labelfire, a hybrid label press, the first of its kind in 2023. With its digital printing capabilities and wide range of application options, Letra opens up a new dimension in the expansion of its printing technology.
Letra has won national and international acclaim for its labels printed using flexo technology, and in 2023 the company won an award for its digital printing capabilities. For a company that has always been about flexo, this digital award marks a shift in how people think about digital printing technology. “This award highlights the growing importance of digital printing as a viable option for businesses looking for high-quality, efficient and cost-effective printing solutions,” said Nirav Shah, Managing Director of Letra.
Around 2020, after the first wave of COVID-19, Narendra Paruchuri, chairman of Pragati Group, a Hyderabad-based printing and packaging company, was asked if he saw commercial printing as a growth market. He replied: “I don’t think so. However, Pragati still has potential in the commercial printing segment. This is because we have added technology in the packaging printing business that can add significant value to high-end coffee table books. If buyers want to add value in books , brochures or catalogs, we can provide these solutions. This is the advantage of Pragati.”
According to Paruchuri, the right technology can help commercial printing be profitable. India is one of the largest commercial printing markets in the Asia-Pacific region. The market size is US$33.2 billion in 2022 and is expected to reach US$41.6 billion by 2028, with a growth rate (CAGR) of 3.4% from 2023 to 2028.
Similarly, the Indian packaging market size is currently estimated at US$71.9 billion, and according to the Indian Institute of Packaging, Mumbai, the packaging industry is expected to grow to US$130 billion by 2028, registering a compound annual growth rate of 12.6%.
Folding carton
Today, the Indian folding carton packaging sector is worth US$2.4 billion and is expected to reach US$4.1 billion by 2025, growing at a CAGR of 9.7%. This market is highly fragmented with a large number of players across India. There are approximately 3,300 units in the industry, with SMEs accounting for a considerable market share.
Although the offset printing process is used to produce single-layer cartons, industry discussions show that narrow-web flexo printing is also used for carton printing. Users include well-known companies such as Pragati Pack, ITek, Zircon Technologies and Any Graphics. The narrow-web flexo process that produces single-layer cartons is often used for small cartons made from a single layer of corrugated or cardboard materials because the process provides high-speed printing and cost-effective short-run printing.
One trend driving the growth of single-wall carton applications in the industry is the growing demand for premium packaging solutions. Another experiment is using value-added barrier layers and heat-sealing papers as alternatives to plastic. Suppliers of such paper-based materials work with flexible packaging converters and brand owners who are keen to provide sustainable solutions such as printed bags.
The sheetfed offset press market in India has approximately 1,500 new printing presses. Between April 2023 and March 2024, 69 printing presses were imported, with Komori Printing leading the market with 49 printing presses, followed by Heidelberg and RMGT with 7 printing presses each, and Koenig & Bauer with 49 printing presses. 5 units, Manroland has 1 unit. India imports nearly 2,000 second-hand printing machines every year.
Flexible packaging
According to the Times of India, the Indian flexible packaging market was worth US$8.4 billion in 2020 and is expected to reach US$12.3 billion by 2025, with a compound annual growth rate of 8%. Gravure still dominates. However, in the past five years, the number of satellite flexo printing machines in India has grown linearly. This means that approximately 15 satellite flexo presses are installed each year. Experts believe that compared with other processes, the sustainability of satellite flexo printing is the key to investment.
“Flexo excels in key areas such as tool development, logistics, waste reduction, power consumption and the use of toluene-free inks. Advantages in quick order changes and ink weights further contribute to its sustainability. As the industry continues to evolve, Flexo printing is paving the way for greener and more environmentally friendly printing solutions,” said an industry expert. Another reason for this shift is government regulations, recyclability and sustainability.
Label
The label market in India has been growing in recent years due to the increasing demand for labels for various products. India's label printing industry is worth US$2.3 billion and is expected to grow to US$3.6 billion by 2025, growing at a CAGR of 7.3%. Per capita label consumption in India has grown from 0.25 square meters in 2008 to about 1 square meter in 2023.
Label production includes pressure-sensitive labels (70%), shrink and stretch sleeves (12%), wet glue labels (10%) and in-mold labels (8%), produced by approximately 700 label printers. Run one or more flexo presses of 6-8 units. There are approximately 1,800 flexo printing machines, 40 of which will be installed in 2023. Likewise, there are 77 digital presses, 37 of which will be installed in 2023 and one hybrid press (Gallus Labelfire).
Industries driving label growth are food and beverage (55%), cosmetics and personal care (17%), home care (15%), e-commerce (10%) and chemicals (3%). There are 26-27 label paper manufacturers in India, the largest of which is Avery Dennison. However, some international multinational manufacturers supply labels to India but do not produce label paper in India.
corrugated carton
In 2023, the Indian corrugated box market size will reach US$7.1 billion. It is expected to reach US$16.9 billion by 2032, with a compound annual growth rate of 10.1%. Rising usage in the food and beverage industry for improved safety, booming e-commerce industry, and favorable government initiatives are some of the key factors driving the market. For example, today, 5% of India's population uses corrugated boxes. If this proportion increases to 10% in the future, India will produce trillions of cartons.
In 2014, the annual production of corrugated boxes in India was 4.6 million tons. Interestingly, 5 factories with captive consumption of more than 15,000 TPA produce 10% of India’s cartons. Today, the corrugated box industry consists of 10,000 small, medium and large corrugated box manufacturers.
Currently, India produces approximately 7-8 million tons of kraft paper. 95% of the cartons in India are ordinary yellow cardboard boxes, and 5% are die-cut or full-color cartons. It is estimated that 200-300 companies control 50% of the market. 5,000-6,000 companies process 200-600 tons of cartons per month, and about 50-70 companies have fully automated factories.
One of the factors contributing to the growth of corrugated boxes is the shift in contribution from rural to urban areas. Normally, the ratio of rural to urban contribution in India was 40:60, now it is almost 50:50. "Part of the reason for the growth of e-commerce has to do with the shift from urban to rural demand. Over the years, various economic initiatives have boosted growth in rural India. Most brand owners are now focusing on rural demand." The entire packaging industry is helping to re- Designing packaging for the rural market,” said Cyrus Modi, chairman and managing director of Horizon Pack, one of India’s top corrugated manufacturers, and president of the Indian Corrugated Carton Manufacturers Association (ICCMA).
publishing
A report "The Present, Future and Future of Indian Publishing Industry" released by the Publishers Association of India and EY-Parthenon estimates that the market value of the Indian publishing industry in 2019 was approximately US$6.25 billion and will reach US$10 billion by 2024. Neeraj Jain, managing director of Scholastic, the world's largest children's book publisher, was part of the report team.
Elsewhere in the publishing industry, the report revealed that India has the second-largest publishing infrastructure after China. Publishing is one of the largest media-related industries in India in terms of revenue, larger than print media, digital media, film entertainment, radio and music.
The number of students at the school level is about 250 million, and the number of students at the higher education level is more than 3,500. These students mainly rely on books as a learning medium. Therefore, the Indian publishing industry is an integral part of the Indian education system. Most importantly, print books currently dominate the Indian publishing landscape (90%). Digital formats only account for a small share, accounting for 8%-10% of the market share.
“E-books are on the rise, but not as fast as we thought, even during these difficult times. Our view on this is that e-books can help increase the number of readers in society, which will be beneficial in the long run. Books, both paper and digital, have a very positive impact,” said Neeraj Jain.
digital printing
Print on demand was launched in India in the late 1990s. Some believe that printing on demand began around 1999 with Xerox's Safida. However, it took another decade for it to become mainstream in the industry.
The print-on-demand business started in 2003, but the turning point came in 2018, according to an industry veteran who has worked with two of the most prominent digital press manufacturers. "I don't think 2010 or 2012 was the turning point. Things started looking up when the Indian government imposed a ban on imports of refurbished machines in 2017. After that, the wholesale market started booming," he said.
In recent years, digital printing technology has become a popular choice for short-run jobs and variable data printing. Relevant data shows that by 2023, the number of digital printing presses will reach 2,300. The projected revenue from sales of equipment in 2023 is around Rs 450 crore, which is said to be the highest in a year. Furthermore, further growth is expected in 2024.
There are four main reasons for this shift. First, the number of machines increases. Secondly, the output of each machine increases. Third, this year is the year of drupa printing, and many new technologies and products will be launched during this year. Finally, more attention is paid to binding.
growth areas
Indian printing and packaging industry players see several potential growth areas in the future. One of the biggest areas is the growing demand for sustainable packaging solutions. As consumer awareness of eco-friendly packaging increases, players are looking to provide sustainable solutions that meet market needs. For example, biodegradable packaging materials, recycled materials and reusable packaging. Another growth area is smart packaging, which integrates technologies such as RFID, NFC and QR codes.
Another area of potential growth is the growing demand for digital printing solutions. With the rise of e-commerce, players are looking to provide solutions that meet the needs of online retailers, such as personalized packaging and print-on-demand. However, in India, it is not the big brands (whose digital packaging purchase volume is less than 2%) but the startups (approximately 130,000) that require small amounts of packaging materials.
in conclusion
Despite growth opportunities, the Indian printing and packaging industry faces several challenges. Manu Choudhary of CDC Printing in Kolkata, who said his company's profits increased by 50%-100% year-on-year in 2018-2019, said he designed CARMA (a homophone of the word karma, referring to the principle of cause and effect) to fully Realize the potential of print products and emerging technologies.
All businesses around the world are made up of different processes. All processes should include the following five steps: CARMA – Create, Adapt, Roll Out, Measure and Accountable. “We are all experts at creating. It is only in the next four areas that some of us fail and blame the failure on external factors such as people, government, competition, customers, etc., when our success is truly and It just depends on CARMA," Chowdhury said.
Today is the age of disruption. How quickly one can adapt and realign business models and processes to current requirements will set Indian printing companies apart. This is exactly what the CDC has demonstrated over the past few years.