Packaging Industry Projected to Grow at 9% CAGR, Reaching $92 Billion by FY 2030

Indian Packaging Industry to Reach $92 Billion by FY30, Driven by 9% CAGR Growth

The packaging industry in India is poised to experience significant growth, with a projected Compound Annual Growth Rate (CAGR) of 9% over the next five years, reaching a value of $92 billion by FY30. This growth is driven by the country's consumption-led economy, with India emerging as the world's fastest-growing packaging market.

Key Drivers of Growth

The growth is attributed to rising demand from various end-use segments, including food and beverages, pharmaceuticals, personal care, agriculture, durables, and e-commerce, as well as increasing penetration of organised retail and quick commerce. The industry has also been driven by the formalisation of retail and supply chains, leading to a broader shift towards organised and branded consumption.

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Global Packaging Industry Outlook

The global packaging industry is already a $1 trillion market, making it one of the largest manufacturing ecosystems. The industry is expected to witness growth, driven by various substrates, including paper, plastics, metals, glass, and composites.

Indian Packaging Substrate Growth

In India, per capita plastic packaging consumption remains underpenetrated compared to developed markets, indicating strong headroom for growth. Among substrates, Rigid Plastic Packaging (RPP) is expected to grow at a CAGR of 10.3% annually over the next five years, driven by its durability, cost efficiency, and suitability for mass distribution.

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Deal Activity and Investment

The packaging industry is expected to witness significant deal activity, consolidation, and capability-led scale building, driven by structural tailwinds. Financial sponsors have accounted for 76% of minority transactions and 25% of majority transactions, reflecting growing investor confidence in the sector's long-term growth potential. M&A is expected to play a key role in driving scale, enhancing capabilities, and enabling entry into high-growth segments and geographies.