The global packaging and logistics industry is projected to reach about USD 9.5 trillion in 2026 and expand to nearly USD 15.7 trillion by 2035, registering a CAGR of 5.7%.
The packaging & logistics sector is undergoing rapid transformation driven by smart warehousing, digital supply chains, and e-commerce acceleration. Industry 4.0 technologies such as warehouse management systems (WMS), RFID tracking, artificial intelligence (AI), Big Data analytics, and the Internet of Things (IoT) are redefining logistics operations. Smart warehouses use automation, robotics, predictive analytics, and real-time inventory visibility to enhance order accuracy, reduce manual intervention, optimize resource allocation, and improve fulfillment speed. As omnichannel retail and last-mile delivery networks expand, digital logistics ecosystems are becoming critical for operational efficiency, cost control, and customer satisfaction.
Further, sustainability has evolved from a branding exercise to a regulatory and operational necessity. Governments around the world are tightening environmental compliance standards, particularly around plastic waste, carbon emissions, and circular economy targets. As packaging companies are now required to provide transparent disclosures regarding recycled content percentages, material composition, recyclability instructions, and lifecycle environmental impact. Eco-friendly packaging solutions extend beyond recyclable corrugated boxes to include mono-material films, compostable mailers, FSC-certified paper, water-based adhesives, and biodegradable cushioning alternatives. Sustainable packaging not only reduces environmental footprint but also strengthens brand equity, as research indicates that a majority of consumers prefer environmentally responsible packaging, even at a premium price point. For logistics operators, lightweight and optimized packaging designs help reduce transportation emissions and improve supply chain sustainability metrics.
E-commerce growth continues to amplify the strategic importance of packaging design and logistics efficiency. Packaging now shapes brand perception, unboxing experiences, product protection, and shipping economics simultaneously. Protective yet minimalistic designs help reduce dimensional weight costs while ensuring product integrity during transit. Automation-enabled fulfillment centers depends on standardized, right-sized packaging formats to streamline picking, packing, and dispatch processes. Technologies like autonomous mobile robots (AMRs), AI-driven demand forecasting, and real-time shipment tracking enhance warehouse throughput and delivery reliability. For instance, replacing plastic fillers with paper-based honeycomb structures, reduces waste while maintaining product safety, reinforcing both operational efficiency and sustainability goals across the supply chain.
In India, the sector is witnessing strong policy and investment momentum. According to the India Brand Equity Foundation (IBEF), the Council of Scientific and Industrial Research (CSIR) launched the National Mission on Sustainable Packaging Solutions to promote recyclable materials, advanced testing facilities, and low-impact packaging technologies. Global players are also expanding local capacity; for instance, SIG Group has invested in aseptic carton manufacturing infrastructure to strengthen domestic production. Increase in foreign direct investment inflows in paper, pulp, and packaging segments further highlight India’s growing role in the global packaging ecosystem. Collectively, smart logistics infrastructure, sustainable material innovation, regulatory support, and digital transformation are positioning the packaging and logistics industry for sustained growth through 2035.
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