India’s packaging sector to reach USD 92-billion by FY30: Avendus

India’s packaging industry is set to expand at a CAGR of around 9% over the next five years, reaching USD 92-billion by FY30, according to a report by Avendus Capital. The sector is emerging as a key proxy for the country’s consumption-led growth, attracting rising investor interest and deal activity across segments.

The report positions India as the world’s fastest growing packaging market, expected to outpace GDP growth by 1.3x. Demand is being driven by food and beverages, pharmaceuticals, personal care, agriculture, durables, and e-commerce, alongside the rapid expansion of organised retail and quick commerce.

Despite its scale, the sector retains strong headroom for growth. India’s per-capita plastic packaging consumption remains significantly lower than developed markets, at nearly one-seventh of the US and one-fourth of Europe.

Rigid plastic packaging is projected to be the fastest-growing segment, with a CAGR of 10.3%, supported by durability and cost efficiency. Flexible packaging continues to dominate with a 27% market share, while paper, glass, and metal packaging are expected to grow steadily as sustainability gains prominence.

Koushik Bhattacharyya, managing director and head of industrials investment banking at Avendus Capital, said packaging has evolved beyond a functional role to become a key enabler of branding and customer experience, supported by rising incomes and the formalisation of retail.

Sustainability remains a defining theme. With recycling rates below 10%, regulatory measures such as extended producer responsibility are accelerating the shift towards recyclable materials, including mono-material structures.

The report also highlights sustained deal activity, with financial investors accounting for 76% of minority transactions. As the industry evolves, M&A is expected to play a central role in driving scale and capability expansion.