INDIAN PAPER INDUSTRY AT A GLANCE IN 2022 - 2023
Growing manufacturing sector, requirement of better quality packaging, the demand for paper products, such as tissue paper, filter paper, tea bags, light weight online coated paper and medical grade coated paper are expected to drive the paper & paper products market in India in the coming years. The per capita paper consumption in India is at a little over 13 kg, is way behind the global average of 57 kg. Between 2017 and 2022, the Indian paper industry has experienced a compound annual growth rate (CAGR) of 3.27%.
India’s packaging paper segment has grown strongly in recent years, and today the segment makes up 63% of total paper demand in India, up from 52% six years ago.
While packaging paper has grown 7% during this period, and speciality paper even by 16% the segments of newsprint and printing paper both saw declines.
Ecommerce DriveThe packaging paper segment has grown rapidly in recent years, thanks partly to the flourishing e-commerce sector, particularly after the Covid-19 pandemic. According to one estimate, India’s e-commerce business is expected to grow from $29 billion in 2020 to just over $100 billion by 2025.
This trend has led to a growing need for packaging materials, including corrugated boxes, cartons, and wrapping papers.
Future ScopeThe Indian paper and paper products market is to reach $ 13.4 billion by 2024. And, by 2024-25, domestic consumption is projected to rise to 23.5-million tpa (tonnes per annum) and production to 22.0-million tpa. About one million tpa of integrated pulp, paper and paperboard capacity is required to be created in India on an annual basis over the current capacity to meet the growing demand.
Paper consumption is likely to witness 6-7% annual growth and will reach 30 million tonnes by FY 2026-27.
The estimated turnover of the Indian Paper industry is Rs 70,000 crore with domestic market size of Rs 80,000 crore.
