Live from PlastIndia: How packaging is fueling India’s FMCG sector
At Bharat Mandapam, the air is thick with more than just the hum of high-speed extrusion lines — there is a sense of a gold rush in the making.
06 Feb 2026 | 166 Views | By WhatPackaging? Team
While the global economy faces headwinds, the Indian FMCG and packaged food sectors are moving at a velocity that has turned a plastic pouch into valuable real estate in the country. The numbers being discussed in the exhibition corridors are staggering.
India’s FMCG sector, valued at approximately USD 245.39-billion in 2024, is not only growing; it is exploding. With a projected CAGR of 27%, the industry is on a collision course with a USD 615.87-billion valuation by 2029. Driving this surge is a USD 107-billion packaged food market, where shifting urban lifestyles and the rise of quick Commerce have made instant the only speed that matters.
At this year’s PlastIndia, the conversation has shifted from “can we make it?” to “how can we move it?” In a market as geographically vast and price-sensitive as India, the packaging is the silent hero of the balance sheet. Exhibitors are showcasing innovations focused on what the industry calls the five pillars of profitability: low cost of production, ease of transport, stackability, zero breakage, and high-barrier shelf life.
“The Indian consumer remains extremely value-conscious,” noted one exhibitor specialising in multi-layer films. “But the brand owners are now looking for the sweet spot — packaging that is light enough to slash transit costs but strong enough to survive the bumpy last-mile delivery of a 10-minute grocery app.”
However, the USD 600-billion dream faces a hurdle: the regulatory gauntlet. As of early 2026, the Ministry of Environment’s Extended Producer Responsibility (EPR) mandates have moved from suggestion to strict enforcement. The industry is currently grappling with the 2025-26 targets, which require brand owners to integrate at least 30% recycled content into rigid packaging and ensure 100% recyclability across their portfolios.
The tension at PlastIndia is clear. On one hand, manufacturers are chasing the high-volume demand from the food delivery and FMCG sectors. On the other hand, they must navigate a maze of Plastic Waste Management (PWM) rules that threaten heavy environmental compensation (EC) for non-compliance.
As the food delivery sub-segment emerges as a gross-output powerhouse, the plastic packaging industry is finding itself at a crossroads. To feed a USD 600-billion FMCG market, the packaging industry must innovate at the speed of a startup while complying with the rigour of a global environmental watchdog. For those who can bridge the gap between price sensitivity and sustainability, the rewards are unprecedented.