The overall demand for paper in India is growing at 6-7 percent per annum, making it one of the fastest growing markets in the world. The Indian Paper Manufacturers Association (IPMA) has predicted an annual growth rate of 8.2 percent for the packaging paper and paperboard market of the country.
Sep 5, 2024
Future looks bright for the Indian pulp and paper industry as the country continues to be one of the fastest growing paper markets, with the overall demand for paper growing at 6-7 percent per annum.
According to a report recently published by the Indian Paper Manufacturers Association (IPMA), the packaging paper and paperboard market is growing at an annual rate of 8.2 percent in the country.
As per the industry body, domestic consumption of packaging paper and paperboard in 2023-24 was about 15 million metric tonnes, nearly 65 percent of the total paper, paperboard and newsprint market of 23 million metric tonnes in the country.
The demand for better quality packaging of FMCG products, textiles and pharmaceuticals, coupled with a booming e-commerce, rising healthcare spends, over-the-counter medicines and increasing preference for packaged ready-to-eat foods is leading to a rising demand for packaging paper and paperboard.
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The ban on single-use plastic, with paper offering a sustainable environment-friendly option, has also emerged as a key driver for the growth of paperboard and packaging paper market.
The writing and printing (W&P) paper market, which is traditionally associated with consumption of paper in the country, is growing at around 3 percent. Within the segment, copier paper is growing at the fastest rate of 4.5 percent. Currently, it accounts for nearly one fourth of the total domestic paper, paperboard and newsprint market.
The fastest growth of 13.3 percent per annum is being exhibited by the tissue segment, aided by increased awareness about health and hygiene, a characteristic of a growing economy. Tissue is followed by cupstock growing at 10.5 percent. However, both tissue and cupstock have relatively smaller market size together accounting for about 4 percent share in total domestic consumption.
When it comes to paper consumption, per capita paper consumption in India is currently at a low of 16 kg, while the global average is 57 kg. Developed countries have more than 200 kg of per capita consumption of paper.
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“Per capita paper consumption in India is projected to increase over time with increasing levels of literacy, higher growth of organized retail and need for packaging, and overall economic development,” says Mr. Pawan Agarwal, President of IPMA.
India’s share in world production of paper is about 5 percent (fifth largest producer in the world), with estimated production of around 22 million tonnes per annum in 2023-24.
Paper is uniquely placed to offer an environmentally sustainable alternative as it is biodegradable, recyclable and is produced from sources which are renewable and sustainable. Paper can be recycled up to 6-7 times, making it one of the most recycled products in the world.
