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New Delhi: Fuelled by consumption-led growth, higher investor interest and deal activity, India’s packaging industry is expected to grow at 9% compound annual growth rate (CAGR) over the next five years, reaching US$ 92 billion by financial year 2030, a report by Avendus Capital noted.The report flagged India as the world’s fastest growing packaging market, projected to outpace GDP growth by 1.3 times, driven by rising demand from end-use segments such as food and beverages, pharmaceuticals, personal care, agriculture, durables and e-commerce, along with growing penetration of organised retail and quick commerce.Also Read: Iran war unsettles India's packaged water makers as bottles, caps get priceyAccording to the report, globally, packaging is already a US $ 1 trillion industry. “In India, per-capita plastic packaging consumption remains materially underpenetrated compared to developed markets, signalling strong headroom for growth,” it said.Rigid plastic packaging stands out as the fastest-growing segment in India, set to grow at 10.3% CAGR over the next five years, while flexible plastic packaging remains the largest segment, accounting for 27% of the market. The report attributed the growth to strong demand from packaged food, FMCG, personal care, and pharma. Beyond plastics, the report sees paper packaging gaining from the shift toward recyclable, fiber-based materials, while glass and metal packaging are expected to witness growth at 7.5% and 7% CAGR respectively, it said.Koushik Bhattacharyya, managing director and head, industrials investment banking, Avendus Capital said, “The packaging industry has emerged as one of the strongest proxies to India’s consumption growth. With rising incomes, premiumisation, and formalisation of retail and supply chains, the Indian packaging industry is structurally well-positioned to cater to a broader shift towards organised and branded consumption.”Also Read: FMCG companies weigh shrinking pack sizes, hiking prices to absorb crude shockHe further said these structural tailwinds would continue to drive deal activity, consolidation, and scale building, keeping the sector firmly on the radar of both strategic and financial investors.According to the report, in India, deal activity has remained steady over the past decade within the sector, with increasing participation from private equity and strategic investors. Financial sponsors have accounted for 76% of minority transactions and 25% of majority transactions, reflecting growing investor confidence in the sector’s long-term growth potential, it said.