By Rajesh Khosla, CEO, AGI Greenpac
Packaging has become a dynamic interface between businesses, consumers and the environment. India’s packaging industry exceeded ₹7.36 lakh crore (US$ 86 billion) in 2024, ranking third globally. With the smart packaging segment at US$ 456.9 million and set to grow nearly 10 % annually, and EPR rules enforcing higher recycling requirements from FY 2024-25, the sector stands at an inflection point where design, functionality and circularity will be redefined
Sustainability: The core imperative
Sustainability has become a key parameter through which packaging innovation is benchmarked. Consumer expectations, regulatory requirements, and corporate commitments are dovetailing to accelerate this shift. Packaging is increasingly being designed with its end-of-life in mind – yet in India only about 8% of plastic waste is formally recycled, underscoring the gap between design innovation and actual waste recovery. In contrast, the glass industry extensively utilizes cullet (crushed recycled glass) in bottle manufacturing, which helps reduce energy consumption, lowers raw material usage, and minimizes carbon emissions. On average, the industry is able to recycle close to 40 – 50% of cullet, including both pre-consumer and post-consumer sources—a figure that continues to rise as recycling infrastructure and collection systems improve. This reflects a gradual shift away from the traditional linear take–make–dispose model toward a more circular and sustainable packaging ecosystem.
Innovation and research have led to the rise of newer materials. But each breakthrough needs to balance durability, cost, performance, and environmental benefit. Parallelly, governments are pushing forward with Extended Producer Responsibility (EPR) legislation, requiring manufacturers to be responsible for the entire lifecycle of packaging. The implications are profound, as businesses will now need to treat packaging as a core pillar of their sustainability strategies.
Packaging goes digital
The inclusion of digitalisation is transforming packaging from a static wrapper to a dynamic interface. With the rising use of QR codes, NFC tags, and RFID chips, packaging is now becoming traceable, with authenticity checks, and is developing into a platform for consumer engagement. A quick scan can now reveal sourcing data, usage advice, recycling instructions, or immersive brand storytelling.
Especially in key sectors such as food and pharmaceuticals, smart packaging can monitor freshness, ensure regulatory compliance, and combat counterfeiting. As packaging merges with the Internet of Things, its role could extend beyond the shelf into connected ecosystems such as smart fridges, healthcare monitoring devices, or automated retail systems.
The role of Industry 4.0
Industry 4.0 is transforming the packaging sector by integrating smart technologies like IoT, AI, robotics, and digital twins to make production faster, more efficient, and sustainable. Smart sensors and data analytics enable real-time monitoring, predictive maintenance, and reduced waste, while automation and robotics improve speed and safety. Trends such as smart packaging, on-demand customization, and greater supply chain visibility are enhancing both consumer experience and brand trust. At the same time, a strong focus on sustainability is driving the use of recyclable materials and leaner designs.
Keeping the consumer front and centre
Since the end user of packaging is the consumer, their demand for an enhanced experience will influence a significant amount of design and innovation approaches. For example, the demand for convenience is seeing the rise of resealable pouches to single-serve formats suited to dynamic lifestyles. At the same time, the resurgence of minimalistic aesthetics is seeing brands adopt new design philosophies that signal authenticity and environmental awareness, appealing to younger demographics who are critical of over-packaging.
Personalisation is also coming to the fore. Advances in digital printing now make it possible to customise packaging on a large scale, which is helping brands connect with consumers at a deeper, more emotional level.
Innovation for the future
Material innovations remain at the heart of transformation. Glass, long valued for its recyclability, is being re-engineered to be lighter, stronger, and more adaptable to modern supply chains, making it a viable option beyond its traditional premium positioning. Aluminum cans, meanwhile, are emerging as the frontrunners of sustainable packaging—offering infinite recyclability, lower transportation costs due to their light weight, and strong consumer acceptance across both beverages and emerging categories like ready-to-drink coffees and functional drinks. At the same time, nanotechnology is enabling advanced barrier properties, antimicrobial coatings, and extended shelf life for perishables. These shifts signal a packaging future that balances sustainability, performance, and cost efficiency, while navigating consumer expectations and regulatory demands.
A regulatory imperative
Globally, policymakers are accelerating the pace of change through ambitious legislation, from stricter recycling and recovery targets to mandates on circularity and material efficiency. Such frameworks are pushing manufacturers to reassess material choices, reprioritize investments, and innovate across packaging and waste management systems. For businesses, compliance is no longer a ‘good to have’ but a non-negotiable requirement—and a critical differentiator for success. To stay ahead, producers will need to anticipate regulatory shifts, embed flexibility into their strategies, and adapt to evolving standards, with harmonisation across markets emerging as a decisive factor.
Opportunities and challenges ahead
The future of packaging will need a dual approach. Firstly, delivering value to businesses and consumers, and secondly, minimising environmental impact. Achieving this balance offers tremendous opportunity. Innovations in packaging can unlock new forms of consumer engagement and business growth. Meanwhile, transparency and authenticity in sustainability efforts will act as differentiators in increasingly competitive markets.
But cost pressures remain significant, particularly as sustainable materials and smart technologies often carry premiums. Recycling infrastructure is uneven across geographies, limiting the effectiveness of otherwise well-designed solutions.
Ultimately, companies that embrace packaging not as a cost centre but as a strategic enabler of brand equity and environmental stewardship will be the ones to grow.
The future of packaging is being shaped by a convergence of multiple factors. Rather than a static bystander, packaging is emerging as a dynamic factor in conversations about climate action, consumer trust, and digital transformation.
By treating sustainability as a core principle and then leveraging technology as an enabler, the packaging industry can chart a path that is not only viable but also responsible.
The road ahead will be complex, but it also holds immense potential. By balancing innovation, cost, consumer expectations, and environmental responsibility, packaging can emerge as a powerful driver of sustainable growth and brand value determine whether packaging remains a problem or becomes a powerful force for change.