The India Packaging Market is expected to reach $ 204.81 Bn by 2025, registering a CAGR of 26.7% during the period of 2020-2025.

  • The fastest growing packaging segments are laminates and flexible packaging, especially PET and woven sacks.
  • The Indian packaging industry has made a mark with its exports that comprise flattened cans, printed sheets and components, crown cork, lug caps, plastic film laminates, craft paper, paper board and packaging machinery, while the imports include tinplate, coating and lining compounds and others.
  • Over the last few years Packaging Industry is an important sector driving technology and innovation growth in the country and adding value to the various manufacturing sectors including agriculture and FMCG segments.
  • Growth in this sector is primarily driven by factors like growing pharmaceutical, food processing, manufacturing industry, FMCG, healthcare sector and ancillary in the emerging economies like China, India, Brazil, Russia and few other East European countries.
  • Indian paper industry remains largely a fragmented sector. It consists of small, medium and large paper mills, having production ranging from 5 to 2000 Tonnes per day.
  • Packaging is currently the 5th largest sector of Indian economy.
  • India is a net exporter of packaging products and the largest exporter of sub-segments— Biaxially-oriented Polyethylene Terephthalate (BOPET) & Flexible Intermediate Bulk Container (FIBC).

100% FDI is permitted under the automatic route in Paper & Packaging industries in India.

For further details, please refer FDI Policy

  • %

    Share of Wood in total production

  • %

    Share of Agro in total production

  • %

    Share of Waste Paper Mill in total production

The industry structure comprises of more than 900 paper units, with an installed capacity of nearly 4,990 Thousand Tonnes.

As on Mar 2023 around 553 mills are operational with a total operating capacity of around 25.61 MT.

Total production for the year of 2022-23 stood at 4,824 Thousand Tonnes. 

Industry Scenario

In India, per capita consumption of paper is about 15-16 kg, which is much lower than the world average (57 kg in 2020).

Strong favorable demographics, increasing disposable income levels, rising consumer awareness and demand for processed food have been prime factors behind the surge in demand of plastic packaging.

India Specific Key Facts for Paper and Packaging: 

  • In term of value, $3179.24 Mn of paper, paperboard & newsprint was exported in 2021-22, as against $1940.94 Mn in the previous year. This added nearly $1238.30 Mn (in terms of percentage it is 63% growth) in the nation growth. 
  • It has been recorded that most of the new green or brown field projects are coming in Packaging Grade Sector and most of them are based on Recycled Fibre, hence, total share of RCF paper-based mills are exponentially increasing. 
  • 70% paper and board is contributed by non-wood sectors of the Industry.
  • Focus States of Paper: Andhra Pradesh, Karnataka, Maharashtra, and Gujarat

Mergers & Acquisitions transactions in the sector are on the rise signaling the interest of institutional investors in the sector


  • Rising Consumer Demand

    40% of India’s population will be living in urban areas by 2025 up from 31% in 2010 which will lead to increasing consumption of FMCG and packaged food products.

  • Increasing investments in End-user Industries

    Growing investments in food processing, personal care, and pharmaceutical industries have created opportunities for packaging market expansion.


Industrial Land Bank Portal

GIS - based map displaying available infrastructure for setting up business operations in the state.

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Investment Opportunities in Paper & Packaging

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    Asked Questions

    Is it mandatory for the name of the company to be indicative of the nature of its business?

    No, it is not mandatory for the name to be indicative of the nature of its business.

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