The India sustainable packaging market ( size reached USD 10,226.21 Million in 2025 and is projected to grow to USD 17,732.87 Million by 2034. The market is expected to register a CAGR of 6.31% during the forecast period of 2026–2034. Growth is driven by stringent government regulations mandating extended producer responsibility and recycled content, as well as rising corporate commitments and consumer awareness pushing the adoption of biodegradable, compostable, and recyclable packaging solutions. The report presents a thorough review featuring the India sustainable packaging market growth, share, trends, and research of the industry.

STUDY ASSUMPTION YEARS

• Base Year: 2025
• Historical Year/Period: 2020-2025
• Forecast Year/Period: 2026-2034

INDIA SUSTAINABLE PACKAGING MARKET KEY TAKEAWAYS

• Current Market Size: USD 10,226.21 Million in 2025
• CAGR: 6.31%
• Forecast Period: 2026-2034
• The Indian government has implemented comprehensive regulations such as the Plastic Waste Management Amendment Rules (July 2025) requiring QR code traceability and 30% recycled content by 2025.
• National R&D initiatives like the National Mission on Sustainable Packaging Solutions (launched July 2024) focus on developing indigenous eco-friendly materials and traceability technologies.
• Corporate commitments toward 100% recyclable packaging are rising, supported by increasing consumer demand for sustainable alternatives.
• The government’s ban on single-use plastics (2022) and FSSAI regulations (March 2025) allowing rPET use in food contact materials further intensify market growth.

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MARKET TRENDS

Government Regulatory Push and Extended Producer Responsibility

The Indian government is actively reshaping the sustainable packaging sector through stringent regulations. The Plastic Waste Management Amendment Rules introduced in July 2025 mandate QR code traceability on all plastic packaging and require producers to incorporate at least 30% recycled content by 2025. These Extended Producer Responsibility provisions hold producers accountable for the collection and recycling of packaging waste equivalent to their market introduction, creating a fundamental shift in packaging design and material selection. The regulatory environment is further supported by the 2022 ban on single-use plastics, accelerating the demand for sustainable alternatives and promoting investment in recycling infrastructure.

National R&D Initiatives Encouraging Innovation in Sustainable Materials

Launched in July 2024, the Council of Scientific and Industrial Research’s National Mission on Sustainable Packaging Solutions brings together multiple CSIR labs and industry partners to innovate indigenous alternatives to multilayer packaging, PET and glass bottles, and new biobased, biodegradable materials. The mission addresses issues such as microplastics found in human tissues, and develops blockchain-based traceability solutions. This collaborative national effort positions India as a leader in sustainable packaging innovation, facilitating rapid commercialization of lab-developed eco-friendly materials and smart packaging technologies, especially for the food industry.

Rising Corporate Commitments and Consumer Demand for Eco-Friendly Packaging Solutions

Major multinational corporations in India are pledging to transition to 100% recyclable packaging for their product portfolios. Consumer awareness about environmental issues like plastic pollution and climate change is growing, particularly among millennials and Gen Z, who prefer biodegradable, recyclable, and compostable packaging materials. The beverage sector exemplifies this shift with adoption of biodegradable bottles, recycled plastics, and paper cartons to meet regulations and consumer demands. Sustainable packaging now influences brand perception, customer loyalty, and competitiveness in a green-conscious marketplace, making it a strategic business imperative.

MARKET GROWTH FACTORS

Stringent Government Regulations

The market growth is spurred by rigorous regulatory frameworks such as the Plastic Waste Management Amendment Rules effective July 2025 requiring brands to incorporate 30% recyclables and enabling traceability through QR codes. Earlier bans on single-use plastics in 2022 contribute to accelerating demand for sustainable packaging. Additionally, FSSAI’s 2025 regulations permitting rPET plastics in food packaging stimulate innovation and investment in compliance-driven eco-friendly packaging solutions across industries.

National R&D Support for Indigenous Innovations

The National Mission on Sustainable Packaging Solutions initiated in 2024 by CSIR facilitates the development of bio-based, biodegradable, and blockchain traceability technologies. This research focus on alternatives to conventional plastics and multilayer packaging fosters innovation addressing environmental challenges like microplastics. The collaborative commercialization framework strengthens the supply of market-ready sustainable packaging solutions, which is a key growth driver.

Corporate and Consumer Sustainability Commitments

Rising corporate sustainability pledges targeting 100% recyclable packaging and growing eco-conscious consumer bases, particularly millennials and Gen Z, drive market expansion. Companies in sectors like beverages are adopting biodegradable and recycled material packaging responsive to environmental concerns and compliance. This shift from CSR initiatives to strategic imperatives stimulates brand loyalty and competitive advantage, fueling continuous demand growth.

MARKET SEGMENTATION

Material Insights:

• Plastics
• Paper and Paperboard
• Glass
• Metal

The market segmentation by material includes plastics, paper and paperboard, glass, and metal, each analyzed in detail for their market contributions and trends.

Type Insights:

• Rigid
• Flexible

The type segmentation comprises rigid and flexible packaging, providing insights into demand patterns and industry applications.

Packaging Format Insights:

• Primary Packaging
• Secondary Packaging
• Tertiary Packaging

Segmented by packaging format, covering primary, secondary, and tertiary packaging with detailed market analysis for each.

Process Insights:

• Recyclable
• Reusable
• Biodegradable

Process segmentation categorizes packaging into recyclable, reusable, and biodegradable types, reflecting evolving eco-friendly practices.

Application Insights:

• Food and Beverages
• Personal Care and Cosmetics
• Healthcare
• Others

Market segmentation by application includes food and beverages, personal care and cosmetics, healthcare, and other sectors, describing usage trends.

Regional Insights:

• North India
• West and Central India
• South India
• East and Northeast India

Regional market analysis covers North India, West and Central India, South India, and East and Northeast India, highlighting geographical trends.

REGIONAL INSIGHTS

South India is a significant regional market highlighted by the inauguration of Oji India Packaging's largest manufacturing plant in Andhra Pradesh with an annual capacity of 100 million square meters of corrugated boxes, signaling robust demand growth in South India. The region benefits from expanding industrial infrastructure and increasing adoption of sustainable packaging solutions, reinforcing South India’s prominence in the overall market.

RECENT DEVELOPMENTS & NEWS

In March 2025, Oji India Packaging Private Limited inaugurated its fifth and largest plant in Sri City, Andhra Pradesh. The 43,000 sqm facility with 100 million square meters annual capacity produces heavy-duty boxes and sustainable packaging, serving various industries and meeting South India's growing demand. In October 2024, ITC Packaging partnered with UK-based Frugalpac to introduce the Frugal Bottle, a sustainable paper bottle made from 94% recycled paperboard, in India and South Asia. This bottle is five times lighter than glass, reduces carbon emissions by 84%, and achieves a water footprint four times lower than traditional glass bottles.

KEY PLAYERS

• Oji India Packaging Private Limited
• ITC Packaging
• Frugalpac

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