Indian packaging market poised for growth, metal packaging to play key role

The Indian metal packaging market is on a robust growth trajectory, projected to expand from its current valuation of approximately USD 10 to 10.5-billion to USD 13 to 13.5-billion by 2030, a CAGR of 5% to 5.5%. This optimistic outlook was shared by Ujjal Chakraborti, who is the executive in charge (Tinplate) of Tata Steel, in a recent interview with WhatPackaging? magazine. During a lunch meeting at the Trident Hotel in Mumbai, he highlighted key drivers and emerging trends within the sector.

According to Chakraborti, the growth is fueled by a confluence of factors, including increasing urbanisation, burgeoning rural demand, and aggressive export promotions. Government initiatives and India's strengthening global brand image are further contributing to the surge in packaging demand. He underscored how evolving consumer lifestyles, particularly the rise of doorstep deliveries, are making packaging an indispensable element of daily life. He said, "Lifestyle changes, such as ordering from home, are significantly contributing to packaging demand."

A major trend, according to Chakraborti, was the increasing emphasis on sustainability and circularity. Chakraborti noted that today's youth are highly aware of global warming and environmental issues, making recyclable options increasingly attractive. Metal cans, with a recyclability rate exceeding 80% and the ability to be recycled multiple times, perfectly align with this consumer demand. He said, "Tata Steel is championing circularity initiatives, including the establishment of its first steel recycling plant in Rohtak, Haryana for collecting and reprocessing recycled steel from households, among other sources."

He added, "Innovation in metal packaging is also evident in the push for light-weighting through degauging, where steel is made thinner while maintaining its integrity. This delicate balance is carefully managed through collaboration with standards bodies like BIS. Furthermore, continuous efforts are being made to reduce production costs and enhance the aesthetic appeal and stackability of metal packaging, particularly for the growing premium segment in India."

Today, metal packaging is increasingly seen as a preferred option for processed foods, offering superior barrier protection that retains taste and ensures food quality. This focus on food safety is driving significant research and development in areas like tin coating and lacquering.

Chakraborti indicated a shift towards metal packaging in industrial goods and medical applications, notably with the rise of aerosol products, which are primarily manufactured with tin. Chakraborti highlighted opportunities for premiumisation in segments like high-value spices, fresh fruits, and chocolates, where metal packaging can elevate the product's perceived value and ensure better food quality and durability.

He emphasised the steel giant's customer-centric approach, long-term relationships, and application team structure to work with customers on new designs and developments. He mentioned how the application engineers work closely with customers to understand their needs, address issues, and develop new solutions based on different applications (processed food, aerosol, paint) and industry standards.

Ujjal Chakraborti spotlighted how the global supply chain faces disruptions from factors like tariffs,  Chinese steel exports, geopolitical conflicts, and increased sea freight costs, impacting trade balances. However, domestic manufacturers are finding support from government interventions such as Quality Control Orders (QCOs), which have been applied to tinplate since 2021, helping to improve quality and protect local industries.

Chakraborti said, "Tata Steel emphasises its customer-centric approach, leveraging its application engineering teams to work closely with clients. These teams address issues, foster new designs, and adapt products to various applications and diverse country-specific standards."

Amit Agrawal, who is chief marketing and sales - Tinplate Division, touched upon the importance of educating the public about the recyclability of metal packaging. Agrawal said, "While awareness is growing, greater inter-industry dialogue and public communication are needed to counter any negative perceptions and highlight the sustainable aspects of metal packaging."

Agarwal spoke about how Tata Steel is working towards recycling tin cans to prevent the reuse of cans. He said the main aim is to establish a comprehensive supply chain for collecting, shredding, and baling tin cans for recycling. The steel giant has undertaken this project in Kolkata, and the main aim is to address the life cycle of tin cans. He said, "Steel can be recycled again and again without loss of properties. From that perspective, steel scrap is a valuable resource and an important raw material for steel-making. Recycling scrap derived from the 15 kg edible oil tin container is one such example of enabling a circular economy loop.

Agrawal said, "Initiatives like re-can are being explored to integrate the unorganised scrap supply chain and promote ethical recycling of used tin cans. This is important since it communicated the benefits of recycling metal packaging to those outside the industry."