2025-08-26

The pharmaceutical industry in India is on a trajectory of unprecedented growth. Valued at around USD 50 billion in FY 2023-24, with USD 23.5 billion from domestic consumption and USD 26.5 billion from exports, India is one of the world’s largest producers of medications and therapeutic solutions, ranking 3rd globally by volume and 14th by value of production.

This surge has not happened in isolation. It creates a chain reaction across supporting industries - and packaging is among the most critical. What was once seen as a back-end function is now central to how the pharmaceutical industry ensures safety, scalability, and sustainability.

Today, packaging stands at a turning point. On one hand, it must keep pace with the rapid expansion of the pharmaceutical sector; on the other, it must deliver solutions that are sustainable and responsible. What was once seen as a support function is now central to driving growth and trust in the industry.

Pharmaceutical Growth: The Catalyst for Packaging Evolution

India’s pharmaceutical industry is entering a new phase of expansion, driven by rising global demand for generic medicine, improved domestic healthcare access, the rapid adoption of e-pharmacies, and the strengthening of manufacturing under initiatives such as Make in India.

For packaging stakeholders, this expansion brings both opportunity and responsibility. The demand for blister packs, vials, syringes, ampoules, sachets, and tamper-proof containers continues to grow. Equally, the need for sterility, traceability, and regulatory compliance calls for manufacturers to uphold standards.

The real inflection point, however, lies beyond functionality - it lies in the transformation of packaging from a disposable component to a contributor to circular economies. In this shift, glass has re-emerged as a material of choice: it is inert, endlessly recyclable, and capable of ensuring the highest standards of safety and purity for sensitive pharmaceutical products. As the sector moves away from unsustainable, single-use composites, glass offers a bridge between uncompromising safety and genuine sustainability.

Redefining Packaging: A Shift Towards Sustainability

There is a growing worldwide scrutiny of single-use plastics and environmental waste, with more than 400 million tonnes of plastic produced annually and less than 20 percent recycled. For pharmaceutical applications, where hygiene, stability, and shelf life are paramount, this shift presents unique challenges. Nonetheless, innovation is rising to meet the moment.

Material Innovation: Modern packaging companies are actively exploring recyclable mono-materials and bio-based alternatives. High-barrier polymers with recyclability, glass containers, paper-based blister packaging, and aluminium alternatives are gaining traction in segments where traditionally multi-layered plastics dominated.

Design for Circularity: Designing packaging that is easy to recycle, reprocess, or compost is gaining ground. The principle of “design for disassembly” is being applied even in highly regulated pharma formats, where some materials traditionally posed recycling challenges.

Lifecycle Assessment and Carbon Tracking: Sustainability is increasingly measured not only by materials used, but by the total carbon footprint across the product lifecycle. Packaging companies are investing in carbon accounting tools, data analytics, and certifications to offer pharmaceutical clients complete environmental transparency. This data-driven approach helps pharma companies align packaging with Environmental, Social, and Governance (ESG) targets, which is an area of growing importance for global compliance and investor confidence.

Digitalisation and Smart Packaging

Another powerful enabler of sustainability and scalability is digitalisation. Smart packaging technologies such as QR codes, NFC chips, and blockchain-enabled track-and-trace systems are being integrated to address key industry challenges.

For the pharmaceutical industry, these tools provide multiple benefits such as anti-counterfeit authentication, improved recall management, better inventory control, and direct-to-patient engagement. Importantly, digital tools can also reduce redundant secondary packaging by shifting information from physical labels to digital platforms.

Example: Multi-language dosage instructions or expiry tracking can be moved to a digital interface, reducing the need for extensive printed material within packages. Over time, this reduces material consumption and supports leaner, smarter packaging systems.

Case in point: In August 2023, the Indian Ministry of Health and Family Welfare mandated that the top 300 pharmaceutical brands incorporate QR codes on their packaging. These codes, when scanned, provide consumers with essential information such as drug authenticity, batch number, expiry date, and manufacturer details. This initiative aims to combat counterfeit medicines and enhance supply chain transparency.

Regulatory Alignment and Global Standards

India’s integration into global pharmaceutical supply chains brings new regulatory compliance expectations. As countries adopt stricter environmental regulations, such as the EU’s Green Deal or Extended Producer Responsibility (EPR) frameworks, packaging must align with international standards.

This globalisation of compliance offers a strategic opportunity. Indian packaging manufacturers can leapfrog legacy processes and build capabilities that meet tomorrow’s requirements, today. In doing so, they not only support pharmaceutical exports but also elevate their value in the global market.

The alignment of Indian packaging standards with the United States Food and Drug Administration (USFDA), European Medicines Agency (EMA), and World Health Organization Good Manufacturing Practices (WHO GMP) while embedding sustainable practices can prove to be a significant competitive advantage.

The Role of Collaboration in Driving Change

Packaging innovation in the pharmaceutical context is not the responsibility of manufacturers alone. It requires a collaborative ecosystem involving material scientists, converters, pharma companies, regulators, logistics partners, and consumers.

Joint R&D and Open Innovation: Partnerships between packaging converters and pharmaceutical R&D teams are leading to the co-creation of new formats of packaging. Open innovation models, where ideas and intellectual property are shared across stakeholders, accelerate the development of scalable solutions.   

Supply Chain Synchronisation: With the global focus on reducing emissions across product chains, supply chain collaboration is becoming key. Local sourcing of raw materials, decentralised manufacturing units, and optimised transportation networks all contribute to a lower environmental impact.

Consumer Education: Finally, patient behaviour plays a crucial role. Recyclability only yields benefits if end-users dispose of packaging correctly. Therefore, industry initiatives are also focusing on awareness campaigns, simplified symbols, and user-friendly guides to encourage responsible disposal.

Balancing Growth with Responsibility

The Indian pharmaceutical sector should be a cause for national pride and economic consequence. Its growth trajectory is unlikely to slow in the coming decades. But the question for adjacent industries – key among them packaging - is how to grow responsibly.

This is not just about responding to regulation or consumer opinion. It is about building business models that can thrive in the resource-lean, carbon-accountable future that lies ahead.

Companies that embed sustainability at the core of their strategy, rather than treating it as a box to tick, will earn resilience, investor trust, and long-term relevance.

For the packaging industry, this means investing not just in capacity, but in capability: capability to innovate, to adapt, and to lead.

Looking Ahead: From Compliance to Consciousness

India’s pharmaceutical growth presents an extraordinary opportunity for the packaging sector to redefine its identity - from a support function to a value creator. It also places a moral and strategic obligation on industry leaders to future-proof their practices through sustainable innovation.

The way forward must embrace a two-fold vision: one that meets the demanding pace of pharma growth, while honouring the principles of environmental stewardship and social responsibility.