India’s packaging industry is poised for significant growth, with projections indicating a market value of $92 billion by FY30. A report by Avendus Capital forecasts a compound annual growth rate (CAGR) of around 9% over the next five years, surpassing the country’s GDP growth by 1.3 times. This growth is attributed to factors such as rising incomes, urbanization, and evolving consumer preferences, positioning the sector as a reflection of consumption trends.
The demand for packaging is being driven by various sectors including food and beverages, pharmaceuticals, personal care, agriculture, durables, and e-commerce. The expansion of organized retail and quick commerce platforms further contributes to this growth trajectory. Despite being the fastest-growing packaging market globally, India’s per capita consumption remains lower than that of developed economies, indicating substantial room for future expansion.
Rigid plastic packaging is expected to witness significant growth, while flexible plastic packaging continues to dominate the market share, fueled by demand from FMCG and packaged food companies. Simultaneously, there is a rising interest in paper-based packaging due to a shift towards recyclable and sustainable materials. Packaging has evolved beyond its traditional role to become a branding and customer experience tool, particularly as companies emphasize premiumization strategies.
Investor interest in the packaging sector remains robust, with consistent deal activity and increasing involvement from private equity firms. The future is likely to see mergers and acquisitions playing a pivotal role in scaling operations, enhancing capabilities, and tapping into high-growth segments, as highlighted in Avendus Capital’s analysis. Additionally, the packaged food and beverages (F&B) market in India is anticipated to grow to over $150 billion by 2030 from the current $100 billion, primarily driven by the rapid expansion of quick commerce.
