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Sector Overview

"The Indian packaging sector has emerged as a vital contributor to the nation’s economy, fueled by rapid industrialization, increasing consumer demand, and a shift towards organized retail. Valued at approximately $80 Bn, the industry has grown at a steady rate of 6-7% annually, and its prospects continue to rise with the expansion of key sectors like food and beverage, pharmaceuticals, and e-commerce. India’s vast population, urbanization trends, and changing lifestyle preferences have heightened the demand for innovative, eco-friendly, and convenient packaging solutions. This transformation is supported by technological advancements and government policies promoting sustainability and waste reduction.

For investors, the Indian packaging sector offers compelling opportunities due to its strong growth trajectory and resilience in the face of global economic fluctuations. With the burgeoning middle class driving consumption, e-commerce penetration expanding in tier-II and tier-III cities, and increasing regulatory focus on sustainable practices, the sector is primed for innovation and long-term value creation. Additionally, India’s favourable demographic profile and its cost-competitive manufacturing environment make it an attractive hub for both domestic and international players. The rise of sustainable packaging materials and digital printing solutions further underscores the sector's potential, aligning with global trends and consumer preferences. These factors make the Indian packaging industry a critical focus area for investors seeking high-growth and future-ready sectors."

45%

of the overall Indian packaging market in FY 2023 is held by plastic packaging, dominating the industry

26%

of the overall Indian packaging market in FY 2023 is comprised of paper and paperboard packaging, holding a significant share

Why Invest in Packaging

  • Rapid Market Growth

    The Indian packaging market is projected to grow from $84 Bn in 2024 to $143 Bn by 2029, reflecting a robust CAGR of 11% This growth trajectory positions India as a significant player in the global packaging industry, which is expected to grow at a slower pace

  • Diverse Opportunities Across Segments

    The sector includes various segments such as flexible packaging, rigid packaging, and paper packaging. The flexible packaging market alone is anticipated to grow by $17.49 Bn from 2024 to 2029, driven by trends in sustainability and technological advancements

  • Cost-Effectiveness

    India presents itself as an attractive destination for production and processing, the cost advantages coupled with a highly skilled workforce help enhance the potential for growth and profitability

     

  • Rising Consumer Demand

    The expanding middle class in India is driving demand for packaged goods, particularly in sectors like food and beverages. As disposable incomes rise, consumers are increasingly seeking convenience and premium products, which further fuels growth in the packaging sector

Incentives & Schemes

  • Remission of Duties and Taxes on Export Products (RoDTEP) scheme
  • Export Promotion Capital Goods (EPCG) scheme