Surging from a $50.5 billion market today to an anticipated $107.9 billion by 2029, India's packaging industry isn't just growing—it's fundamentally reshaping the nation's economic landscape.
Key Takeaways
- The Indian packaging industry market size was valued at USD 50.5 billion in 2023 and is projected to reach USD 107.9 billion by 2029, growing at a CAGR of 13.2%.
- India's packaging sector contributed 4% to the manufacturing GDP in FY2023, employing over 7 million people directly and indirectly.
- The rigid packaging segment in India accounted for 42% of the total packaging market revenue in 2023, valued at USD 21.2 billion.
- Corrugated box production capacity in India stands at 10 million tonnes per annum as of 2023.
- India produced 1.2 million tonnes of flexible films in 2022-23, with capacity utilization at 85%.
- PET resin production for packaging in India reached 1.05 million tonnes in FY2023.
- FMCG sector consumed 45% of India's total packaging output in 2023, equating to 12.5 million tonnes.
- Pharmaceutical packaging demand in India reached 350,000 tonnes in 2023, growing at 12% CAGR.
- Food and beverage industry accounted for 38% of flexible packaging consumption at 5.8 million tonnes in 2023.
- India's packaging exports grew 22% to USD 2.1 billion in FY2024, with flexible packaging leading at 55% share.
- Packaging imports into India totaled USD 4.8 billion in 2023, primarily machinery and specialty films.
- Flexible packaging exports from India reached USD 1.15 billion in 2023, targeting US and EU markets.
- 65% of Indian packaging industry adopted sustainable materials by 2023, up from 40% in 2019.
- Recycled plastic usage in packaging reached 25% in India by 2023.
- Biodegradable packaging market grew at 28% CAGR to USD 1.2 billion in 2023.
India's packaging industry is booming due to strong demand across major sectors.
Consumption and Demand
- FMCG sector consumed 45% of India's total packaging output in 2023, equating to 12.5 million tonnes.
- Pharmaceutical packaging demand in India reached 350,000 tonnes in 2023, growing at 12% CAGR.
- Food and beverage industry accounted for 38% of flexible packaging consumption at 5.8 million tonnes in 2023.
- E-commerce packaging demand surged 25% to 1.2 million tonnes in FY2023.
- India's retail sector used 3.4 million tonnes of corrugated packaging in 2022-23.
- Personal care products consumed 800,000 tonnes of plastic packaging in 2023.
- Dairy industry packaging consumption stood at 450,000 tonnes annually in 2023.
- Automotive sector used 250,000 tonnes of metal and plastic packaging in FY2023.
- Export-oriented units consumed 2.1 million tonnes of packaging materials in 2023.
- Household and consumer goods sector demanded 4.5 million tonnes of paper packaging in 2023.
- Beverages sector consumed 28% of total packaging, 7.8 million tonnes in 2023.
- Tobacco packaging demand 180,000 tonnes in FY2023.
- Electronics packaging used 950,000 tonnes of rigid packaging in 2023.
- Chemicals industry consumed 1.1 million tonnes of plastic drums in 2023.
- Bakery products packaging at 650,000 tonnes annually.
- Confectionery sector used 320,000 tonnes of flexible packaging.
- Poultry packaging demand grew to 200,000 tonnes in 2023.
- Textile exports packaging 1.5 million tonnes corrugated.
- Fruits and vegetables flexible packaging 900,000 tonnes in 2023.
Consumption and Demand Interpretation
India’s economy is so thoroughly wrapped, packed, and boxed up that if the packaging sector took a day off, the entire subcontinent would quite literally fall apart.
Exports and Imports
- India's packaging exports grew 22% to USD 2.1 billion in FY2024, with flexible packaging leading at 55% share.
- Packaging imports into India totaled USD 4.8 billion in 2023, primarily machinery and specialty films.
- Flexible packaging exports from India reached USD 1.15 billion in 2023, targeting US and EU markets.
- Paper and board packaging exports hit USD 450 million in FY2023.
- Plastic packaging import dependency reduced to 15% in 2023, with imports at USD 1.2 billion.
- Metal packaging exports from India grew 18% to USD 320 million in 2023.
- Glass packaging exports stood at USD 150 million in FY2023, mainly to Middle East.
- India imported 120,000 tonnes of aluminum foil for packaging in 2023.
- Corrugated packaging exports reached USD 280 million in 2023.
- PET preforms imports declined 10% to USD 500 million in FY2023.
- Packaging imports from China USD 2.3 billion in 2023.
- Engineering goods exports used USD 450 million packaging in 2023.
- Ready-to-eat food packaging exports USD 120 million.
- Imports of packaging machinery USD 850 million in FY2023.
- Gems and jewelry packaging exports USD 50 million.
- Spices packaging exports grew 15% to USD 80 million.
- Leather goods packaging imports USD 30 million.
- Handicrafts sector packaging exports USD 65 million in 2023.
- Pharmaceutical packaging exports USD 250 million.
Exports and Imports Interpretation
While India's packaging industry brilliantly wraps up a 22% export boom to become a global contender, its own domestic market remains stubbornly addicted to imported machinery and specialty films, creating a trade narrative that's both confidently outgoing and curiously reliant.
Market Size and Growth
- The Indian packaging industry market size was valued at USD 50.5 billion in 2023 and is projected to reach USD 107.9 billion by 2029, growing at a CAGR of 13.2%.
- India's packaging sector contributed 4% to the manufacturing GDP in FY2023, employing over 7 million people directly and indirectly.
- The rigid packaging segment in India accounted for 42% of the total packaging market revenue in 2023, valued at USD 21.2 billion.
- Flexible packaging market in India expanded from USD 10.8 billion in 2020 to USD 15.7 billion in 2023 at a CAGR of 13.3%.
- India's paper and paperboard packaging sector grew by 12.5% YoY in 2022-23, reaching INR 1.2 lakh crore in value terms.
- The overall Indian packaging industry is expected to grow at 15% CAGR through 2028, driven by e-commerce and FMCG sectors.
- Plastic packaging in India held 45% market share in 2023, valued at USD 22.7 billion.
- India's packaging exports reached USD 1.8 billion in FY2023, up 20% from previous year.
- The metal packaging segment market size in India was USD 4.2 billion in 2023, projected to grow at 10.8% CAGR to 2030.
- Glass packaging industry in India valued at USD 3.1 billion in FY2023, with 8% growth rate.
- The Indian packaging industry market size was valued at USD 75.4 billion in FY2022 and expected to grow to USD 204 billion by FY2028 at 18.2% CAGR.
- Rigid plastics segment contributed USD 18.3 billion to the market in 2023.
- Flexible packaging CAGR projected at 16.5% from 2023-2030 in India.
- India's folding carton market valued at INR 45,000 crore in 2023.
- Packaging industry GDP contribution expected to rise to 6% by 2027.
- Employment in packaging sector reached 8.5 million in 2023.
- India's packaging market third largest in Asia after China and Japan in 2023.
- Sachet packaging segment grew 20% to USD 2.5 billion in 2023.
- Aerosol packaging market in India USD 1.1 billion in 2023.
Market Size and Growth Interpretation
India's packaging industry isn't just wrapping goods; it's wrapping up massive economic growth, millions of jobs, and a future so bright you'll need a seriously durable box to put it in.
Production and Capacity
- Corrugated box production capacity in India stands at 10 million tonnes per annum as of 2023.
- India produced 1.2 million tonnes of flexible films in 2022-23, with capacity utilization at 85%.
- PET resin production for packaging in India reached 1.05 million tonnes in FY2023.
- Paperboard production in India was 7.5 million tonnes in 2023, 60% used for packaging.
- India's plastic packaging production grew 14% YoY to 8.9 million tonnes in 2022-23.
- Capacity for multilayer flexible packaging films in India is 1.8 million tonnes annually.
- Aluminum foil production for packaging reached 250,000 tonnes in India in 2023.
- Glass container production capacity in India is 2.5 million tonnes per year as of 2023.
- India's rigid plastic packaging production hit 4.2 million tonnes in FY2023.
- Carton board manufacturing capacity expanded to 1.1 million tonnes in 2023.
- India produced 9.5 million tonnes of plastics for packaging in 2023.
- Capacity for BOPP films in India is 900,000 tonnes per annum.
- HDPE for packaging production at 2.8 million tonnes in FY2023.
- Kraft paper production for packaging 4.2 million tonnes in 2023.
- Injection molding capacity for packaging at 3.5 million tonnes annually.
- Blow molding production capacity 1.9 million tonnes in India 2023.
- Duplex board capacity expanded to 850,000 tonnes in 2023.
- Tinplate production for cans 450,000 tonnes per year.
- Thermoform packaging production 1.2 million tonnes in 2023.
- Laminated tubes production capacity 150,000 tonnes annually.
Production and Capacity Interpretation
India's packaging industry is essentially staging a materialistic opera, where plastics are singing a bold, growing aria, paper products provide the sturdy chorus, and every other material from glass to aluminum is vying for a solo, all to ensure whatever we buy arrives with a dramatic (and well-protected) flourish.
Trends and Innovations
- 65% of Indian packaging industry adopted sustainable materials by 2023, up from 40% in 2019.
- Recycled plastic usage in packaging reached 25% in India by 2023.
- Biodegradable packaging market grew at 28% CAGR to USD 1.2 billion in 2023.
- Smart packaging adoption in pharma sector increased to 15% of total packaging in 2023.
- 40% growth in barrier films usage for food packaging in India since 2020.
- Nanotechnology in packaging projected to capture 5% market share by 2025.
- E-commerce drove 30% adoption of lightweight packaging innovations in 2023.
- 55% of companies invested in automation for packaging lines in 2023.
- 72% of flexible packaging now recyclable in India as per 2023 standards.
- Active packaging market size USD 450 million in 2023, CAGR 22%.
- 3D printing for packaging prototypes adopted by 25% firms.
- Paper-based alternatives to plastic grew 35% in adoption.
- RFID tags in packaging increased 40% in logistics sector.
- Compostable packaging sales up 50% to INR 5,000 crore.
- AI-driven packaging design tools used by 30% companies.
- Edible coatings innovation piloted in 10% food packaging.
- Circular economy initiatives covered 45% of industry waste.
Trends and Innovations Interpretation
The Indian packaging industry, in a surprisingly swift and data-rich pivot, is rapidly evolving from a linear "make-use-dispose" model into a sophisticated, tech-infused loop of sustainability, where recycled plastics mingle with barrier films, smart labels whisper to logistics networks, and a hungry 65% of the sector now bets on materials Mother Nature would approve of.
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