New Delhi, March 24 : Indiaâ??s consumption boom is set to significantly drive the growth of the domestic packaging industry, which is projected to reach $92 billion by FY30, according to a report released on Tuesday.

The report by Avendus Capital has estimated that the Indian packaging market will grow at a CAGR of around 9 per cent over the next five years, outpacing the countryâ??s GDP growth by nearly 1.3 times.

The sector is increasingly being seen as a direct proxy for consumption trends, supported by rising incomes, urbanisation, and changing consumer preferences, it said.

Demand is being fuelled by key end-use segments such as food and beverages, pharmaceuticals, personal care, agriculture, durables, and e-commerce, along with the rapid expansion of organised retail and quick commerce platforms.

The report noted that India is currently the fastest-growing packaging market globally, even as per capita consumption remains significantly lower than developed economies, indicating strong headroom for future growth.

Among segments, rigid plastic packaging is expected to emerge as the fastest-growing category, while flexible plastic packaging continues to dominate the market share, driven by demand from FMCG and packaged food companies.

At the same time, paper-based packaging is gaining traction amid a broader shift toward recyclable and sustainable materials.

The report also pointed out that packaging is increasingly moving beyond its traditional functional role to become a key tool for branding and customer experience, especially as companies focus on premiumisation.

The report further stated that investor interest in the sector remains strong, with steady deal activity and growing participation from private equity firms.

Going forward, mergers and acquisitions are expected to play a crucial role in driving scale, enhancing capabilities, and tapping into high-growth segments, according to an analysis by Avendus Capital.

Moreover, according to another, Indiaâ??s packaged food and beverages (F&B) market is set to enter a new phase of growth, projected to expand to over $150 billion by 2030 from around $100 billion currently, driven largely by the rapid rise of quick commerce.

/IANS