Advantage India
Robust
Demand
*Paper packaging market reached Rs. 1,67,110 crore (US$ 19.07 billion) as of August 2025, growing at 19.48% CAGR to reach Rs. 4,06,866 crore (US$ 46.43 billion) by 2030.
*India packaging industry valued at Rs. 7,36,092 crore (US$ 84 billion) in 2024, projected to reach Rs. 12,53,109 crore (US$ 143 billion) by 2029 at CAGR 11.00% during 2024-2029.
Innovation Towards
Sustainability
*In 2024, the Council of Scientific and Industrial Research (CSIR) has launched the National Mission on Sustainable Packaging Solutions, aiming for a net-zero future through innovation. Led by CSIR-NIIST, the initiative focuses on developing sustainable materials, recycling methods, and advanced testing facilities to enhance India's packaging sector and address environmental challenges.
Increasing
Investments
*SIG, a Swiss based packaging company, laid the foundation of first aseptic carton packs in Ahmedabad in 2023 and plan to invest a sum of Rs. 880 crore (US$ 106.02 million) over the period of 2023-2025, with additional US$ 50 million committed for Phase 2 by 2027.
*Cumulative FDI inflows stood at Rs. 10,159.90 crore (US$ 1.74 billion) in the Paper and Pulp (including paper) sector between April 2000-March 2025.
Policy
Support
*Initiatives like "Make in India" and GST reforms are bolstering the demand for advanced packaging infrastructure, creating a more conducive environment for both domestic and international players.
Industry Overview
Packaging has emerged as the fifth largest sector of the Indian economy, playing a pivotal role in driving industrial growth, innovation, and value creation across FMCG, agriculture, and food processing. Growing at a rapid 22 to 25% annually, the sector is supported by advances in technology, logistics, and rising consumer demand. India has a strong base with over 22,000 packaging units, of which 85% are SMEs, and a robust paper manufacturing ecosystem of more than 850 mills, with 526 operational, producing nearly 25 million tonnes annually. Installed capacity in paper and paperboard stands at about 5 million tonnes, with utilisation levels above 95%, reflecting both scale and efficiency.
Foreign Direct Investment (FDI) and Innovations
The government’s liberalised policies, including 100% FDI through the automatic route, continue to attract overseas investors. Between April 2000 and March 2025, the Paper and Pulp (including paper) sector received cumulative FDI inflows worth Rs. 10,159.90 crore (US$ 1.74 billion). Industry players are also investing in cutting-edge solutions. SIG, for instance, has established India’s first aseptic carton packaging facility in Ahmedabad and plans to invest Rs. 880 crore (US$ 106 million) during 2023 to 2025. Such initiatives highlight the sector’s increasing tilt toward technology-driven, sustainable, and consumer-centric packaging innovations.
Sustainability Initiatives and Market Trends
Sustainability has become central to the industry’s growth narrative. Nearly three-fourths of India’s paper production already comes from recovered paper and recycled fibre, while government measures to curb plastic use and promote eco-friendly materials are accelerating change. The Council of Scientific and Industrial Research (CSIR), through its National Mission on Sustainable Packaging Solutions, is driving research in sustainable materials, recycling technologies, and advanced testing facilities. Rising demand for food safety and quality, coupled with India’s fast-growing food processing sector, is further boosting the need for innovative and green packaging. As of September 2024, India has become the world’s third largest packaging market, surpassing Japan, with an industry size of Rs. 7,36,246 crore (US$ 86 billion).
Market Dynamics and Future Projections
The packaging industry’s growth is underpinned by India’s expanding middle class, improved supply chain infrastructure, and the rapid rise of e-commerce platforms. Increasing consumption of packaged food, projected to reach Rs. 29,563 crore (US$ 3.4 billion) by 2027, and sustained export demand are adding momentum. Imports of paper and paperboard, which rose to 9.92 lakh tonnes in FY25 (April to September), also reflect the evolving market demand for specialty and high-grade products. Looking ahead, a mix of technological advancements, sustainable practices, and favourable government policies such as Make in India and MSME-focused incentives position the sector as a key contributor to India’s manufacturing growth and its emergence as a global packaging hub.
Recent Developments
- The India paper packaging market size reached Rs. 1,57,263 crore (US$ 18.6 billion) in CY24. Looking forward, it is expected that the market will reach Rs. 2,39,277 crore (US$ 28.3 billion) by CY33, exhibiting a growth rate (CAGR) of 4.56% during 2025-2033.
- India’s food & beverage packaging market is projected to rise from Rs. 3,31,595 crore (US$ 38.30 billion) in 2025 to Rs. 4,53,625 crore (US$ 52.50 billion) in 2030, implying a CAGR of ~6.5% (Mordor Intelligence).
- Growth is driven by surging demand for processed and packaged foods, with domestic packaged-food sales expected to reach Rs. 11,02,610 crore (US$ 1.27 trillion) by 2027.
- February 2025 - Tetra Pak: Introduced packaging with 5% ISCC PLUS certified recycled polymers, aligning with April 2025 plastic-waste compliance rules.
- January 2025 - Huhtamaki India: Hosted 2nd Think Circle forum with CII to accelerate design-for-recycling standards for flexible packaging.
- January 2025 - Canpac Trends: Acquired Saptagiri Packagings, adding blister-backer cards and a Silvassa plant to strengthen western-India operations.
- December 2024 - JK Paper: Merged Horizon Packs, Securipax Packaging, and JKPL Utility Packaging; acquired Radhesham Wellpack to expand corrugated packaging capacity.
- In May 2024, Andhra Paper Ltd. signed a Rs. 125 crore (US$ 14.4 million) deal with Sweden’s Valmet AB for a tissue paper production line, following its Rs. 270 crore (US$ 31.1 million) investment approval for a 100-ton daily capacity machine at its Andhra Pradesh facility.
- Oji India Packaging Pvt Ltd inaugurated its fifth facility in the country at Sri City in Andhra Pradesh. The factory will produce corrugated boxes and packaging accessories and employ approximately 300 people in the region.
- In January 2024, Rigid plastic packaging solutions provider Mold-Tek Packaging Ltd (MTPL) opened three manufacturing facilities in Cheyyar (Tamil Nadu), Sultanpur (Telangana), and Panipat (Haryana). The facilities will increase the business’ capacity to 5,500 tons annually, bringing the overall capacity to 54,000 tons annually by FY25. The company invested about Rs. 100 crore (US$ 11.5 million) in these units.
- February 2023: Cosmetics and hair care brand Revlon developed a new package for its 'Top Speed' hair color range exclusively for the Indian market. The brand unveiled a new visual identity for products across India in the coming years.
- SIG, a Swiss based packaging company, laid the foundation of first aseptic carton packs in Ahmedabad in 2023 and plan to invest a sum of Rs. 880 crore (US$ 106.02 million) over the period of 2023-2025, with additional US$ 50 million committed for Phase 2 by 2027.
Government Initiatives
The government has launched the National Packaging initiative which focuses on the following measures to promote the sector:
- Set up guidelines and certain requirements for design and material of packaging used
- Promote the process of moving in bulk quantities
- Focus on promotion of centralized industrial activity by encouraging application of necessary and sophisticated infrastructure such as specialized logistic parks with appropriate facilities as well as packaging labs to work on designs and carry out tests
- Encourage processes to reduce packaging waste by establishing material recovery facilities (MRFs)
- Support domestic business to manufacture sophisticated packaging materials
- Develop training facilities and certified programs of the highest order to maintain availability of skilled labour
Road ahead
The outlook for India’s paper and packaging industry remains highly promising, supported by a growing population, rapid urbanisation, and rising disposable incomes. The boom in e-commerce and packaged food consumption is driving robust demand, while an increasing emphasis on sustainability is encouraging innovation in eco-friendly materials and practices.
Government initiatives such as Make in India, MSME support, and large-scale infrastructure development are expected to further strengthen manufacturing capacity and streamline supply chains. Advances in technology are enhancing efficiency and quality standards, and rising export potential is opening new avenues for global expansion.
Although challenges such as volatile raw material prices and competition from alternative materials persist, continued investments and a strong sustainability focus position the sector to consolidate its global standing and drive long-term growth.
Note: Conversion rate used in July 2025, Rs. 1 = US$ 0.012
References: Media Reports, Press Releases, Deloitte report, Department of Industrial Policy and Promotion website, India Paper Manufacturer Association (IPMA),Packaging Industry Association of India (PIAI), Indian Flexible Packaging & Folding Carton Manufacturers Association (IFCA), All India Plastic Manufacturers Association (AIPMA)
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