Packaging sector seen growing faster than GDP, to reach $92 bn by FY30

New Delhi: India’s packaging industry is poised for robust expansion, with the market projected to reach $92 billion by FY30, driven by a sustained consumption boom, according to a report by Avendus Capital.

The sector is expected to grow at a compound annual growth rate (CAGR) of around 9 per cent over the next five years, outpacing the country’s GDP growth by nearly 1.3 times. Rising incomes, rapid urbanisation and evolving consumer preferences are positioning packaging as a key proxy for consumption trends.

Demand is being propelled by end-use sectors such as food and beverages, pharmaceuticals, personal care, agriculture, consumer durables and e-commerce. The expansion of organised retail and quick commerce platforms is further accelerating growth. Flexible plastic packaging continues to dominate the market, particularly due to strong demand from FMCG and packaged food companies. However, rigid plastics are expected to be the fastest-growing segment. At the same time, paper-based packaging is gaining traction amid increasing focus on sustainability and recyclability.

Packaging is also evolving beyond its functional role, emerging as a critical tool for branding and enhancing customer experience, especially with the rise of premium products.

Investor interest remains strong, with steady deal activity and increasing participation from private equity players. Mergers and acquisitions are expected to play a key role in scaling operations and tapping high-growth segments.

Separately, India’s packaged food and beverages market is projected to exceed $150 billion by 2030, supported by the rapid rise of quick commerce.