India Packaging Market Surges to $92 Billion by FY30: Avendus Report

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AuthorVihaan Mehta|Published at:
India Packaging Market Surges to $92 Billion by FY30: Avendus Report
Overview

India's packaging industry is expected to nearly double to $92 billion by FY30, growing at an average of 9% per year. A report by Avendus Capital points to strong consumer demand, increased investor interest, and growth in key sectors like food, pharma, and e-commerce as major drivers. This growth trajectory positions India as the world's fastest-expanding packaging market.

India's Packaging Market Set for Major Expansion

India's packaging industry is set for significant expansion, with Avendus Capital forecasting a market value of US$92 billion by FY30. The sector is projected to grow at a 9% compound annual growth rate (CAGR) over the next five years, positioning India as the world's fastest-growing packaging market and outpacing overall GDP growth.

What's Driving Packaging Demand

Demand is escalating across key sectors such as food and beverages, pharmaceuticals, personal care, agriculture, durables, and e-commerce. Growth is further fueled by the increasing presence of organized retail and the rise of quick commerce. The report also notes that India's per-capita plastic packaging consumption is significantly lower than in developed countries, indicating substantial room for future market development.

Growth Across Packaging Types & Investor Interest

Rigid plastic packaging is forecast to grow fastest at a 10.3% CAGR. Flexible plastic packaging, which is the largest segment at 27% of the market, continues to see strong demand from packaged food, FMCG, personal care, and pharmaceutical companies. Paper packaging is gaining popularity as companies shift towards recyclable, fiber-based materials. Glass and metal packaging are expected to grow at 7.5% and 7% CAGR, respectively.

Investor Interest Expected to Continue

Koushik Bhattacharyya, Managing Director at Avendus Capital, noted that the packaging industry serves as a key indicator of India's consumption trends. He explained that rising incomes, a shift towards premium products, and the formalization of retail and supply chains are creating favorable conditions for the sector. These ongoing trends are expected to support continued deal activity and consolidation, attracting both strategic and financial investors. Private equity firms have shown considerable interest, participating in 76% of minority transactions and 25% of majority transactions over the past decade.

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