Indian packaging industry is expected to grow at 9 per cent CAGR over the next five years, reaching $92 billion by FY30, according to a report released by Avendus Capital.
The growth will be driven by the consumption, rising investor interest and deal activity across segments. According to the report, India is now the world’s fastest growing packaging market, projected to outpace GDP growth by 1.3x, driven by rising demand from end-use segments such as food and beverages, pharmaceuticals, personal care, agriculture, durables and e-commerce, along with growing penetration of organised retail and quick commerce.
Koushik Bhattacharyya, managing director and head, Industrials Investment Banking, Avendus Capital, said with rising incomes, premiumisation and formalisation of retail and supply chains, the Indian packaging industry was structurally well-positioned to cater to a broader shift towards organised and branded consumption.
“We believe these structural tailwinds will continue to drive deal activity, consolidation and capability-led scale building, keeping the sector firmly on the radar of both strategic and financial investors,” he said.
The report also highlights sustainability as a major structural theme. While flexible packaging remains critical due to its low per-unit material usage, recycling rates in India are still below 10 per cent, highlighting a significant gap.
Regulatory tailwinds, including Extended Producer Responsibility (EPR) norms are accelerating the adoption of recyclable and eco-friendly materials. In response, Indian consumer companies are increasingly shifting from multilayer laminates to mono-material and recyclable structures.
