The sector encapsulates diverse components like rigid and flexible packaging, which includes paper-based and metal packaging. 85% of the more than 22,000 packaging units in India are SMEs

Metro India News | Hyderabad 

The packaging sector in India is undergoing significant transformation, driven by various trends and market dynamics. As of April 2025, the industry was anticipated to blossom considerably, with India’s packaging market projected to grow to INR 8,620 billion by 2028, exhibiting a compound annual growth rate (CAGR) of over 6.7%.

The sector encapsulates diverse components like rigid and flexible packaging, which includes paper-based and metal packaging.  Approximately 85% of the more than 22,000 packaging units in India are Small and Medium Enterprises (SMEs).

Notably, while India’s per capita paper consumption remains low at approximately 15-16 kilograms compared to the global average of 57 kilograms, the sector provides employment for around 500,000 people directly, with an additional 1.5 million jobs supported indirectly.

Government policies, such as the Plastic Waste Management Rules and initiatives supporting sustainable practices, effectively catalyze innovations within the industry. The surge in e-commerce is a key contributor to the anticipated growth of the carton industry, poised to climb from USD 440 billion in 2024 to over USD 770 billion by 2033. Upcoming regulations and bans on single-use plastics will drive innovation and sustainability in packaging.

Key Insights

India’s per capita packaging consumption is markedly lower than the global average, indicating substantial growth potential in the packaging sector. As urbanization accelerates and average household incomes rise, consumer demand for packaged goods is expected to skyrocket. This creates vast opportunities for both local and international players to enter and innovate within the market.

This approach not only benefits the environment but could future-proof businesses against impending regulations. While the packaging sector shows steady revenue growth driven by enhanced consumer demand and innovation, companies face cost pressures from raw material fluctuations and regulatory compliance.

Industry players need to develop strategies for cost optimization and sustainability while maintaining competitive pricing to preserve margins. Companies pursuing automation, data analytics, and Internet of Things (IoT) applications stand ready against their competition, providing tailored solutions that align with consumer needs while improving operational efficiencies.