India Rigid Plastic Packaging Market Outlook to 2028

India Rigid Plastic Packaging Market Overview

The India Rigid Plastic Packaging Market was valued at USD 8.2 billion. This expansion is driven by rising demand for durable and lightweight packaging in industries like food & beverage, pharmaceuticals, and consumer goods. Additionally, the shift towards sustainable packaging and increasing consumption of packaged goods further fuel market growth.

Major players in the market are Amcor Limited, RPC Group Plc, Berry Global, Inc., Graham Packaging Company, and Sonoco Products Company. These players maintain a strong presence in India, offering a wide range of rigid plastic packaging solutions, including bottles, containers, and closures. Their strategic expansions and innovations in sustainable packaging materials have strengthened their market positions.

A significant development in the India Rigid Plastic Packaging market is Amcor's recent investment of USD 100 million in India to expand its sustainable packaging production lines. This investment, announced in 2023, reflects the growing demand for eco-friendly packaging solutions and supports the company's goal to offer fully recyclable or reusable packaging by 2025.

The Maharashtra, dominates the market due to the region's strong industrial base, particularly in FMCG and pharmaceuticals, which are major consumers of rigid plastic packaging. Additionally, the proximity to major ports in Mumbai facilitates smoother logistics and export operations.

India Rigid Plastic Packaging Market Segmentation

The market is segmented into various factors like product, material, and region.

By Product: The market is segmented by product into bottles and jars, trays, containers, and closures. Bottles and jars held the dominant market share due to their widespread use in the food & beverage and personal care industries. Their dominance is attributed to the increasing consumption of packaged drinks and personal care products.

By Material: The market is segmented by material into PET (Polyethylene Terephthalate), PE (Polyethylene), and PP (Polypropylene). PET dominated the market due to its extensive application in beverage bottles and personal care products. PET is favored for its strength, clarity, and recyclability, which aligns with the growing preference for eco-friendly packaging materials.

By Region: The market is segmented by region into North, South, East, and West. Western India led the largest market share due to the region's strong industrial base and easy access to export channels. The presence of leading FMCG and pharmaceutical manufacturers in states like Maharashtra and Gujarat further consolidates the regions dominance.

India Rigid Plastic Packaging Market Competitive Landscape

Company

Establishment Year

Headquarters

Amcor Limited

1860

Zurich, Switzerland

RPC Group Plc

1991

Northamptonshire, UK

Berry Global, Inc.

1967

Indiana, USA

Graham Packaging

1970

Pennsylvania, USA

Sonoco Products Co.

1899

South Carolina, USA

Amcor Limited: In August 2023, Amcor acquired the Phoenix Flexibles plant in Gujarat, India, as part of its strategy to expand its flexible packaging production. The plant generates an annual revenue of approximately USD 20 million and is expected to enhance Amcor's capabilities in high-value sectors like food, home care, and personal care, supporting their long-term growth in the Indian market.

Berry Global, Inc.: In October 2023, Berry Global launched 20- and 25-liter containers made with 35% recycled HDPE, receiving UN approval for hazardous liquid transportation. These containers cater to chemicals, automotive, and agricultural sectors, aligning with sustainability goals while maintaining performance. The development supports companies in meeting upcoming regulations for recycled content in packaging.

India Rigid Plastic Packaging Market Analysis

Market Growth Drivers

Increased Demand from the FMCG Sector: In 2024, the demand for rigid plastic packaging in the FMCG sector reached over 14 billion units, largely driven by rising consumption of packaged food and beverages. The growing preference for convenient, durable packaging solutions by FMCG manufacturers has resulted in higher production volumes of rigid plastic packaging. According to government data, India's packaged food industry is expected to grow in the next five years, further boosting demand for rigid plastic packaging.

Pharmaceutical Industry Expansion: The Indian pharmaceutical market, which generated revenues exceeding USD 50 billion in 2024, relies heavily on rigid plastic packaging for medicine bottles, vials, and syringes. This growth in the pharmaceutical industry, driven by an aging population and increased healthcare access, continues to support the expansion of rigid plastic packaging. The governments focus on strengthening the domestic pharma sector under initiatives like Make in India further stimulates packaging demand.

Rise of E-commerce and Retail: The Indian e-commerce market, continues to accelerate the demand for protective and tamper-proof rigid plastic packaging. With online retail booming across sectors like electronics, cosmetics, and consumer goods, companies are increasingly adopting rigid plastic solutions to ensure safe transportation and product integrity, making this sector a critical driver of market growth.

Market Challenges

Environmental Concerns Over Plastic Waste: India faces a mounting plastic waste problem, with over 4 million tonnes of plastic waste ending up in landfills annually as of 2024. This has triggered growing environmental concerns, prompting stricter government regulations and consumer preferences for alternative, biodegradable packaging solutions. The shift in consumer behavior poses a long-term challenge for the rigid plastic packaging industry.

Rising Raw Material Costs: In 2024, the price of key raw materials such as polyethylene (PE) and polypropylene (PP) rose, creating cost pressures for rigid plastic packaging manufacturers. These fluctuating prices, driven by global oil prices and supply chain disruptions, affect profit margins and limit the ability of smaller companies to compete in the market.

Government Initiatives

Atmanirbhar Bharat Initiative: The Atmanirbhar Bharat Abhiyan, launched by the Indian government in May 2020, is a comprehensive economic stimulus package worth 20 lakh crore (approximately USD 268 billion), aimed at promoting self-reliance. This initiative focuses on five pillars: Economy, Infrastructure, System, Vibrant Demography, and Demand, constituting about 10% of India's GDP. This funding aims to promote indigenous production of raw materials for rigid plastic packaging and reduce the industrys dependence on imports.

Production Linked Incentive (PLI) Scheme for Plastics: The Indian government is considering a Production Linked Incentive (PLI) scheme for the plastic manufacturing sector, aimed at substituting imports worth 37,500 crore (approximately USD 4.5 billion). This initiative could create around 500,000 jobs and require an investment of 1.5 lakh crore (approximately USD 18 billion) in domestic production.

India Rigid Plastic Packaging Market Future Outlook

Future trends include a shift toward biodegradable materials, advanced manufacturing technologies, increased adoption of circular economy practices, and stricter government regulations on plastic waste management.

Future Market Trends

Shift to Biodegradable Materials: By 2028, the use of biodegradable rigid plastics in India is expected to rise, with over 4 million tonnes of biodegradable packaging materials produced annually. This trend will be driven by stringent environmental regulations and growing consumer awareness about plastic waste reduction.

Increased Government Regulations on Plastic Waste: India is expected to introduce more stringent regulations regarding plastic waste management by 2026, focusing on reducing plastic waste by over 10 million tonnes annually. These regulations will promote the adoption of sustainable rigid plastic packaging solutions, driving innovation and eco-friendly practices across industries.
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