Packaging

Unpacking Opportunities, Challenges, and Strategic Pathways for the Packaging Sector

The packaging sector plays an important role in branding, shelf life extension, supply chains, consumer products, and exports—especially in fast-growing regions. Today, it also plays a growing role in supporting sustainability, tracking product information, and engaging consumers. There are great potential in eco-friendly jute packaging, food and beverage packaging, use of digital technology, and export growth through MSMEs. However, there are challenges like limited use of new technology, weak infrastructure, lack of skilled workers, mismatched regulations, and poor waste management. 

Worldwide, the packaging industry is changing due to environmental concerns, digital technology (like smart packaging), and the growth of online shopping. Environmental concerns are pushing companies to replace plastic with eco-friendly options like biopolymers, paper, and materials made from farm waste. At the same time, digital technology is adding smart features to packaging—like freshness indicators, QR codes, and sensors connected to the internet—to improve safety, transparency, and customer interaction. The industry is expected to keep growing, especially in the area of sustainable packaging. In 2023, the global sustainable packaging market was valued at USD 272.93 billion and is expected to grow a lot by 2030.

In India, packaging is one of the fastest-growing industries and is expected to grow more than four times its 2019 value by 2025, driven by higher consumer spending, the rise of online shopping, and higher demand for processed food and healthcare products.

The food and beverage packaging segment are growing especially quickly, about 14.8% each year and is expected to reach USD 86 billion by 2029.

West Bengal, known for jute, food processing, tea, and growing manufacturing hubs, is now at a key stage where it can use packaging to add value and promote sustainability. This paper synthesizes global, national, and regional developments to explore the opportunities and challenges encountered by the packaging sector in West Bengal.

In West Bengal, the packaging sector offers both big opportunities and some challenges. West Bengal’s mix of industries—like food processing, pharmaceuticals, jute, tea, and seafood and many MSMEs— create steady demand for packaging for both local use and exports and makes it a good place to develop and apply new packaging solutions that is innovative, eco-friendly, and efficient. The State is also working to improve manufacturing, support MSMEs, and build industry clusters, which helps create more opportunities in packaging. However, there are still problems like slow adoption of new technology, poor infrastructure, complicated regulations, and a lack of skilled workers. With its good location, strong agriculture and industry base, and active small businesses, West Bengal is in a special position where both opportunities and challenges co- exist in the packaging sector.

The packaging sector plays an important role in branding, shelf life extension, supply chains, consumer products, and exports—especially in fast-growing regions. Today, it also plays a growing role in supporting sustainability, tracking product information, and engaging consumers. There are great potential in eco-friendly jute packaging, food and beverage packaging, use of digital technology, and export growth through MSMEs. However, there are challenges like limited use of new technology, weak infrastructure, lack of skilled workers, mismatched regulations, and poor waste management. 

Worldwide, the packaging industry is changing due to environmental concerns, digital technology (like smart packaging), and the growth of online shopping. Environmental concerns are pushing companies to replace plastic with eco-friendly options like biopolymers, paper, and materials made from farm waste. At the same time, digital technology is adding smart features to packaging—like freshness indicators, QR codes, and sensors connected to the internet—to improve safety, transparency, and customer interaction. The industry is expected to keep growing, especially in the area of sustainable packaging. In 2023, the global sustainable packaging market was valued at USD 272.93 billion and is expected to grow a lot by 2030.

In India, packaging is one of the fastest-growing industries and is expected to grow more than four times its 2019 value by 2025, driven by higher consumer spending, the rise of online shopping, and higher demand for processed food and healthcare products.

The food and beverage packaging segment are growing especially quickly, about 14.8% each year and is expected to reach USD 86 billion by 2029.

West Bengal, known for jute, food processing, tea, and growing manufacturing hubs, is now at a key stage where it can use packaging to add value and promote sustainability. This paper synthesizes global, national, and regional developments to explore the opportunities and challenges encountered by the packaging sector in West Bengal.

In West Bengal, the packaging sector offers both big opportunities and some challenges. West Bengal’s mix of industries—like food processing, pharmaceuticals, jute, tea, and seafood and many MSMEs— create steady demand for packaging for both local use and exports and makes it a good place to develop and apply new packaging solutions that is innovative, eco-friendly, and efficient. The State is also working to improve manufacturing, support MSMEs, and build industry clusters, which helps create more opportunities in packaging. However, there are still problems like slow adoption of new technology, poor infrastructure, complicated regulations, and a lack of skilled workers. With its good location, strong agriculture and industry base, and active small businesses, West Bengal is in a special position where both opportunities and challenges co- exist in the packaging sector.

 

Overview

The global packaging industry is changing quickly due to new technologies, stricter environmental rules, and shifting consumer choices. Key factors behind this growth include the rise of online shopping, growing focus on sustainability, and increasing demand for smart packaging. Today’s industrial packaging is influenced by automation, the need to track products, and circular economy goals. However, ongoing problems are also many – shortage of skilled workers, changing raw material costs, unstable supply chains, and a lack of sustainable options that can be used on a large scale. Further environmental impact of packaging waste in developing countries need for solutions tailored to each region.

 

Global Trends in Packaging

Modern packaging is no longer just a simple cover, it is becoming smart, eco-friendly, and connected to the digital life of a product. Smart packaging uses sensors, indicators, and internet-connected features to track freshness, check authenticity, and ensure smooth supply chain operations, while also creating new business opportunities. Sustainability is just as important—companies are working to use fewer materials, switch to biodegradable options, and support recycling. Around the world, automation and robotics (including collaborative robots or cobots) are being used to solve problems like slow output, lack of flexibility, and heavy dependence on manual labor in packaging. Technologies like robotic palletizing and packaging robots help improve efficiency and handle different types of products at the same time.

 

Indian Packaging Sector: Macro Context

India’s packaging market is growing fast, fueled by the rise of e-commerce, higher food and drink consumption, increasing incomes, and a stronger focus on exports. Industry estimates say the packaging materials market in India could reach over USD 66.6 billion by 2030, with growing interest in sustainable and smart packaging. To support this shift, India launched a national challenge in 2025 to encourage startups and students to develop eco-friendly packaging solutions. For example, IIT Madras has developed biodegradable packaging made from agricultural waste and mycelium, which can replace traditional foam and reduce environmental harm while making use of waste. India’s packaging sector faces several challenges, including slow adoption of new technology, no standardized eco-friendly supply chains, uneven capabilities among MSMEs, poor waste management, and the difficulty of keeping costs low while meeting environmental rules.

 

Regional/State-Level Context: West Bengal

With its large customer base, rich natural resources, and skilled workforce, West Bengal has the potential to become a key player in India’s next phase of industrial growth. The state acts as a gateway to the East and Northeast, which together contribute 18.38% of India’s GDP. Its location also makes it ideal for trade with neighbouring countries like Bangladesh, Nepal, Bhutan, and Myanmar, as well as Southeast Asia—offering access to both domestic and international markets.

Building a strong industrial base can help West Bengal shift from an agriculture-focused economy to one driven by manufacturing. This would reduce over-reliance on the service sector, which has contributed to income inequality. The manufacturing sector also provides better job opportunities for those currently in agriculture or unemployed, especially semi- skilled workers. In addition, its positive impact on both agriculture and services can help create a strong and self-sustaining economic cycle—something the state urgently needs to solve its current challenges.

West Bengal has several well-established industrial zones like the Hooghly Industrial Belt and Kolkata Leather Complex, along with newer areas such as Jangal Sundari Karmanagari and Andal in Burdwan, which are boosting industrial growth and increasing demand for packaging. Kolkata and surrounding districts have a high need for flexible packaging, PET bottles, trays, and eco-friendly containers. According to DPIIT data, West Bengal ranked 3rd in Industrial Entrepreneurs Memorandum (IEM) intentions, with proposals worth ₹39,133 crore by November 2024. This shows strong interest in manufacturing, including industries related to packaging. Key sectors like food, dairy, beverages, cosmetics, pharmaceuticals, and retail are growing markets for packaging companies, especially those offering sustainable and flexible packaging.

The national focus on eco-friendly materials, recycling, and the circular economy is also creating new opportunities for West Bengal companies to develop products like recycled paperboard and biodegradable packaging.

A case study on packaging showed that consumers often make purchasing decisions based on packaging, especially in the fast-moving consumer goods (FMCG) sector, where decisions are made quickly. Since packaging is often the first thing a buyer notices, it can strongly influence what they choose to buy. The study, done with a consumer from West Bengal, found that consumers fall into different groups based on how much packaging affects their choices, and that different packaging features influence each group in different ways.

West Bengal has several advantages that support the growth of the packaging sector. As a traditional global leader in Jute, the state is well-positioned to shift toward eco-friendly packaging materials, especially those that are biodegradable and fiber-based—meeting the growing demand for sustainable solutions. Its strong food processing and tea industries also drive the need for safe, high-quality, and attractive packaging to help with branding and exports. In addition, MSMEs, which are a key part of the state’s economy, are being supported through government programs like the Cluster Development Programme to improve their productivity, competitiveness, and ability to grow.

State economic reports show that West Bengal is investing in industrial infrastructure and working to keep businesses from relocating. The mix of long-standing industries like jute and tea, new manufacturing activity, and supportive government policies creates a strong foundation where packaging can play a key role in adding value and driving growth. However, surveys at the district level and studies on MSMEs reveal ongoing issues, such as limited access to modern technology, weak market connections, and a lack of readiness for exports.

Despite a rich body of national and global literature, research specific to West Bengal’s packaging sector remains sparse, warranting the current investigation.

 

Revitalizing West Bengal’s Packaging Sector

Opportunities

1. Sustainable Packaging and Local Material Advantage: West Bengal’s dominance in jute production positions it to become a hub for eco-friendly packaging. Rising environmental awareness and policy support are pushing the shift toward biodegradable and compostable materials like jute, bagasse, banana fiber, and water hyacinth as an alternative to single-use plastics. Sectors like food processing and tea (Darjeeling, Dooars) require sustainable, high-quality packaging for branding, shelf life, and export compliance—creating strong market pull and innovation potential.
2. MSME Development, Cluster Strength, and Export Readiness: The state is a leading producer of rice, fish, jute, and vegetables. Government schemes like PMFME and ODOP have propelled demand for low-cost, locally viable packaging. Thus, the state’s agro-based economy and wide MSME presence are central to packaging sector growth. These efforts help smaller packaging firms scale up, meet export standards, and link more efficiently with food processing and upstream sectors, where global interest is growing.
3. Technology Support, Digitization, and Automation: Packaging in West Bengal is evolving with smart technologies such as sensors, indicators, and digital traceability. These tools upgrade traditional supply chains, especially in tea and perishables. Adoption of robotic palletization and packing automation in regional manufacturing centres can reduce waste, improve flexibility, and help address labour constraints in packaging operations (especially for export-oriented goods). Institutions like the Indian Institute of Packaging (IIP), Kolkata and other polytechnics offer technical education in packaging, contributing to the availability of trained manpower and industry-academia linkage.
4. Strategic Location and Policy Momentum: West Bengal serves as the gateway to northeastern India and Southeast Asia and neighbouring countries (Bangladesh, Bhutan, Nepal, Myanmar). With a strong port infrastructure (Kolkata and Haldia ports), the state offers significant export potential for packaged goods in tea, seafood, and processed food. Budgetary allocations, industrial infrastructure development, and explicit state interest in retaining and growing manufacturing signal a supportive macro-environment to nurture packaging as a strategic sub-sector.
5. E-commerce and Consumer-Driven Innovation: The rise of e-commerce, direct-to-consumer (D2C) brands, and increasing disposable incomes has boosted demand for attractive, personalized packaging. Startups are innovating in areas like food-safe inks, ergonomic designs, and new pouching formats to meet evolving consumer expectations in the retail and FMCG space.

 

Challenges

1. Technology and Innovation Gaps: Many small packaging businesses in West Bengal still don’t have access to modern machines like robotic palletizers, RFID systems, or smart packaging tools. Unlike states such as Maharashtra or Gujarat, West Bengal lacks major R&D hubs for packaging innovation. Even though new global technologies are available, local firms face problems in adopting or customizing them due to low awareness, limited resources, and a shortage of skilled workers in areas like design, automation, and sustainability.
2. Regulatory and Compliance Challenges: Small firms often find it difficult to follow complex rules set by agencies like FSSAI, BIS, and EPR. They lack the technical knowledge needed to meet food safety, export, or eco-friendly standards. Navigating all these regulations and certifications increases costs and delays, especially for businesses that don’t have dedicated compliance teams.
3. Weak Infrastructure and Disconnected Supply Chains: Many areas in the state, especially semi-urban zones, still face poor logistics, expensive transport, and limited warehousing—making it hard to manage perishable goods. Also, the packaging sector lacks well-integrated supplier networks and quality control systems across districts, which affects efficiency and limits its ability to meet global standards.
4. High Costs and Challenges with Sustainable Packaging: Prices for key packaging materials—like polymers, aluminum, paperboard, and inks—keep changing. Affordable local alternatives are scarce, especially for advanced needs like barrier films. Shifting to eco-friendly materials also adds upfront costs and requires redesigning the supply chain, which is a big challenge for smaller firms. Balancing cost, performance, and sustainability is not easy.
5. Low Market Visibility and Branding Power: Many packaging companies in West Bengal operate behind the scenes as suppliers to big industries like tea and specialty foods. But they don’t have strong branding or visibility, which limits how much value they can capture—even though they are part of high-potential sectors.

 

Table 1 shows the mapping between opportunities and challenges for packaging sector in West Bengal.

Table 1: Opportunities–Challenges Matrix for West Bengal Packaging Sector

Opportunity Area	Key Enablers	Corresponding Challenges	Strategic Levers
Jute-based sustainable packaging	Abundant raw material, global eco demand, policy push	Technology adaptation, quality consistency	R&D collaboration, brand certification, cluster-level standardization
Food & beverage / tea packaging	Export markets, value addition, state branding support	Compliance complexity, cold chain gaps	Integrated packaging- design centres, export facilitation cells
Smart packaging	Global innovation trends, traceability needs	High cost, lack of skills	Pilot public–private labs, subsidies for SME digital upgrades
MSME cluster export integration	Cluster development programs, government incentives	Fragmented supply chain, visibility	Shared infrastructure, collective marketing, digital B2B platforms
Automation & efficiency	Robotics solutions available	Capital intensity, resistance to change	Leasing models, capacity-building workshops
Sustainability transition	National challenges / innovation initiatives	Cost, circularity implementation	Green financing, eco-labelling schemes

 

Areas of Opportunities for Entrepreneurs in Packaging Industry

West Bengal’s strategic location, abundant agri-industrial output, and policy support create an attractive landscape for setting up packaging material manufacturing and service-based units. Entrepreneurs can tap into this momentum through the following business opportunities:

 

1. Jute-Based Eco-Friendly Packaging Units

• Scope: West Bengal is India’s largest jute-producing state, making it ideal for setting up jute bag manufacturing units (grocery bags, courier covers, seed bags, bulk bags). 
• Investment: ₹40–60 lakh (small-to-medium scale); scalable through cluster-based development. 
• Raw Material: Locally sourced raw jute, jute composite fabrics, jute–polymer blends. 
• Target Markets: Retail, agri-input packaging, exports, and government procurement (e.g., PDS). 

 

2. Flexible Packaging (Plastic, Foil, and Paper Laminates)

• Scope: Demand driven by FMCG, snacks, dairy, and personal care sectors. 
• Business Types: 
  • Lamination and pouching units. 
  • Zipper pouch, vacuum-sealed pack, stand-up pouch production. 

• Investment: ₹2–5 crore depending on automation level. 
• Growth Area: Personalized and small-batch packaging for MSME food processors under schemes like PMFME.

 

3. Thermoformed Packaging for Food and Pharma

• Scope: Trays, blisters, and containers for bakery, sweets, seafood, and pharmaceutical items. 
• Materials: PET, HIPS, PP (with increasing demand for recycled options). 
• Investment: ₹30 lakh–₹1 crore for a medium-sized plant. 
• Location Advantage: Kolkata–Howrah–Hooghly belt sees high demand from small and large food units.

 

4. Paper-Based Packaging and Corrugated Boxes

• Scope: Corrugated box units for e-commerce, electronics, tea, garments, and seafood sectors. 
• Raw Material: Kraft paper (some availability locally), paperboard, duplex board. 
• Investment: ₹1–3 crore for semi-automatic plant. 
• Clusters to Target: Dankuni, Barasat, Siliguri, Malda (with strong logistics support)

 

5. Agro-Waste & Natural Fibre Packaging (Innovative Segment)

• Scope: Specialized packaging for seafood, cut fruits, vegetables, and ready-to-eat meals. 
• Business Types: 
  • Supply of MAP pouches and trays. 
  • Gas flushing and sealing machines. 

• Market Access: Ready demand in Haldia, Midnapore, and Malda for export-oriented units.

 

Support Ecosystem & Levers 

The packaging industry in West Bengal has strong advantages like traditional materials (such as jute), rising demand in food, beverage, and tea, and new trends like smart and eco-friendly packaging. But if there is no strong link between new innovations (like green materials and digital tools) and the small businesses or export markets that use them, the State may not fully benefit from these opportunities. Key strategic insights include:

 

a) Innovation and Technology Advancement

• Set up Packaging Innovation Zones through joint efforts by the government and private players.
• Support development of new materials like jute-polymer blends and bio-based films.
• Encourage MSMEs to use automation and digital tools by offering incentives.
• Promote shared innovation hubs at the cluster level — including R&D labs, quality testing centers, and branding support — to reduce costs and boost access to markets.
• Combine eco-friendly packaging materials with smart features (like digital traceability) to create products that stand out in global markets (e.g., for tea exports).

 

b) Policy and Governance

• Introduce a state-level sustainable packaging policy that aligns with national rules like EPR (Extended Producer Responsibility).
• Create a continuous feedback loop between packaging firms and the government, so policies are regularly updated based on industry needs—especially for funding automation and promoting green practices.
• Policy Push: Promotion of Cluster development under MSME schemes, WB Industrial Policy, ODOP packaging support.

 

c) Skills and Industry-Academia Linkages

• Strengthen ties between academic institutions and industry, such as through internships, consultancy, and research with packaging institutes and engineering colleges.
• Skill Development through IIP Kolkata, ITIs, and polytechnics offering packaging courses. 
• Launch training programs to build skills in packaging design, understanding regulations, and operating automated systems—especially for the current workforce and youth.

 

d) Export Orientation

• Ports of Haldia and Kolkata need to facilitate seafood, tea, and agro-export packaging needs.

 

Way Forward

West Bengal’s packaging sector has a lot of promise, but also faces serious challenges. The state’s strong industrial and agricultural base makes it well-suited to become a major packaging hub—especially if it focuses on eco-friendly practices, innovation, and skill-building. But to reach that goal, it must fix issues like poor infrastructure, complex rules, and weak supply chains. To unlock its full potential, a joint effort is needed from the government, private companies, and educational institutions.

The State already has the right ingredients for growth: natural eco-friendly materials like jute, strong demand from sectors like food and tea, support from MSME clusters, and a growing need for sustainable and export-ready packaging. The key challenge is turning this potential into action by improving technology, infrastructure, and skills. This study offers a clear roadmap for how policymakers, businesses, and researchers can work together to build a strong, green, and competitive packaging industry based on West Bengal’s unique strengths.