Indian Packaging Market 2025-2035

Indian Packaging Market Size, Share & Trends Analysis Report by Material Type (Plastic, Paper & Paperboard, Glass, Metal and Others), by Packaging Type (Flexible Packaging, Rigid Packaging, and Semi-Rigid Packaging), and by End-User (Food & Beverage, Pharmaceutical & Healthcare, Industrial, Cosmetics and Personal Care, Electronics and Other), Forecast Period (2025-2035)

Industry Overview

Indian packaging market was valued at $104.3 billion in 2024 and is projected to reach $306.7 billion in 2035, growing at a CAGR of 10.4% during the forecast period (2025-2035). Packaging is experiencing massive growth in India owing to the rise of the e-commerce industry, growth in pharmaceuticals & healthcare, rising urbanization & shifting consumer lifestyles, technological advancements & smart packaging, and robust government policies & foreign investment. Being the fifth largest sector of the Indian economy, packaging is a crucial segment in driving industrial growth and hence innovation. In response to sustainability demands, India's packaging industry is shifting to more environmentally friendly techniques and materials. Policies aimed at reducing plastic packaging and encouraging sustainable production are driving significant transformation across the industry. Furthermore, the industry's emphasis on food safety and quality complements the rising food processing sector, increasing the need for novel packaging solutions. In September 2024, India surpassed Japan to become the third-largest packaging market, with an industry worth more than Rs. 7,36,246 crore ($86 billion).

Market Dynamics

E-Commerce Boom: India's Expanding Online Shopping Base

India had the third-largest online shopping base, after China and the US, with 150 million in FY21 and predicted to reach 350 million by FY26. Regulatory rules that penalize difficult-to-recycle materials, combined with rapid advancements in automation and fit-to-product design software, are driving demand for smarter, lighter, and more sustainable packaging. Material substitution toward paper, bioplastics, and mono-material flexible films is accelerating as brands comply with new recycled-content standards while maintaining product protection in omnichannel logistics networks. Furthermore, the increasing collaborations between traditional goods retailers and e-commerce platforms are improving product accessibility and increasing the demand for specialized, secure, and tailored packaging solutions, promoting the growth of the Indian packaging market. For instance, in November 2024, Decathlon announced a strategic partnership with Myntra. This collaboration allows Decathlon to tap into Myntra's extensive network, covering almost 98% of serviceable pin codes across India. It will help Decathlon expand its reach in tier I, II, and III cities, with a special focus on emerging sports markets like Northeast India.

Increasing in Foreign Direct Investment (FDI) and Innovations

The government's progressive policies, such as allowing 100% FDI through the automatic route, have boosted foreign investment in the packaging sector. From April 2000 to December 2024, FDI inflows in Paper and Pulp (including paper products) reached Rs. 10,127 crore ($1.74 billion), demonstrating investor confidence in India's packaging landscape. Innovative efforts, such as SIG's development of the first aseptic carton packs in Ahmedabad, demonstrate the industry's drive to technological progress and sustainability. Through plans to invest Rs. 880 crores ($106.02 million) during 2023 and 2025, SIG illustrates the industry's drive towards innovative solutions.

Market Segmentation

• Based on the material type, the market is segmented into plastic, paper & paperboard, glass, metal, and others.
• Based on the packaging type, the market is segmented into flexible packaging, rigid packaging, and semi-rigid packaging.
• Based on the end-user, the market is segmented into food & beverage, pharmaceutical & healthcare, industrial, cosmetics and personal care, electronics, and other.

Food and Beverage Segment to Lead the Market with the Largest Share

Indian food and beverage market growth, driven by increasing disposable incomes, urbanization, and changing consumer patterns, is significantly boosting demand for innovative packaging solutions. The growth encourages innovation across materials, formats, and sustainability, boosting the overall packaging market. According to industry body PHD Chamber of Commerce and Industry (PHDCCI), the market size of India's food processing sector is expected to more than double to Rs. 60,40,300 crore ($700 billion) in 2030, up from Rs. 26,49,103 crore ($307 billion) in 2023. Furthermore, India is the third-largest alcoholic beverage market globally. There are 12 joint venture businesses with a licensed capacity of 33,919 kilolitres per year to manufacture grain-based alcoholic drinks. Around 56 units are manufacturing beer under license from the Government of India. Indian spirits are becoming more and more popular globally, which offers a growth opportunity. Considering a goal of $1 billion in revenue from exports over the next several years, the Agricultural and Processed Food Export Development Authority (APEDA) intends to market Indian alcoholic and non-alcoholic beverages internationally. As part of the "Make in India" campaign, APEDA has been working to boost Indian spirits exports to important international markets. In terms of exporting alcoholic beverages, India is now ranked 40th across the globe.

Paper & Paperboard: Growth in Domestic Consumption Segment

India is one of the top 15 paper-producing nations globally, and its paper sector accounts for around 5% of global paper production. Considering domestic consumption of packaging paper and paperboard increasing by 8.2% in 2023-2024, India continues to lead the global paper market. In FY25 (April-September), imports of paper and paperboard increased by 3.5% to 9,92,000 tons. This shows an opportunity to make investments in Indian-made paper goods. The nation's significant potential to produce paper and paperboard is demonstrated by the 861 paper mills with 526 operational units. In addition, bottles made of paper have grown more and more popular as a green packaging alternative, which encourages paper-based alternatives in India. This shift reflects a growing desire for eco-friendly plastic alternatives as well as an increased awareness of environmental issues. For instance, in October 2024, Frugalpac signed a letter of intent with ITC's limited-packaging and printing business to bring paper Frugal Bottles to India in a collaboration to decarbonize the drinks industry. Through their partnership with ITC's Packaging & Printing Business, Frugalpac will increase and promote the demand for paper bottles in India.

Market Players Outlook

The major companies operating in the Indian packaging market include UFlex Ltd., TCPL Packaging Ltd., Hindusthan National Glass & Industries Ltd. (HNGIL), Gerresheimer AG, EPL Ltd., among others. Market players are leveraging partnerships, collaborations, mergers, and acquisition strategies for business expansion and innovative product development to maintain their market positioning.

Recent Developments

• In January 2024, Rigid plastic packaging solutions provider Mold-Tek Packaging Ltd (MTPL) opened three manufacturing sites in Cheyyar (Tamil Nadu), Sultanpur (Telangana), and Panipat (Haryana). The facilities will raise the business's capacity to 5,500 tons annually, bringing the total capacity to 54,000 tons annually by FY25. These units received an investment of approximately Rs. 100 crore ($11.5 million).

The Report Covers:

• Market value data analysis of 2024 and forecast to 2035.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the India packaging market. Based on the availability of data, information related to new products and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying 'who-stands-where' in the market.