India’s packaging industry projected to reach US$ 92 billion by FY30, Avendus report
- IBEF
- March 27, 2026
India’s packaging industry has tremendous scope to grow, and the sector is likely to touch Rs. 8.50 lakh crore (US$ 92 billion) by the end of FY30, as per a recent report by Avendus Capital. The sector has the potential to grow at a compound annual growth rate (CAGR) of about 9% during the next five years, outperforming the overall GDP growth rate. The industry is also closely correlated to consumption patterns and has seen the benefit of increasing consumption in the key end-use industries of food and beverages, pharmaceuticals, personal care, agriculture, consumer durables, and e-commerce, among others. The increasing presence of organised retail and quick commerce is also boosting the demand for packaging materials.
India is currently among the fastest-growing packaging markets globally, with significant growth potential due to relatively low per capita packaging consumption compared to developed economies. The sector is undergoing structural transformation, with packaging increasingly playing a role beyond product protection to include branding, customer experience, and supply chain efficiency. Among segments, rigid plastic packaging is expected to be the fastest growing, while flexible packaging continues to dominate market share due to strong demand from the FMCG and food sectors. Sustainability is also emerging as a key growth driver, with increasing adoption of recyclable and eco-friendly materials supported by regulatory measures such as Extended Producer Responsibility (EPR) norms. Strong participation from private equity and strategic investors highlights the sector’s attractiveness, positioning it for continued expansion and innovation.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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