India continues to lead as the fastest-growing paper market globally, driven by strong demand for packaging paper and paperboard. Here are the key points from the report:
Growth Insights:
- Growth Rate: The domestic consumption of packaging paper and paperboard in India grew at an impressive 8.2% during the 2023-24 period.
- Market Size: The segment constitutes nearly 65% of India’s total paper, paperboard, and newsprint market, amounting to about 15 million tonnes.
Driving Factors:
- Increased Demand for Quality Packaging: The surge in demand comes from sectors like e-commerce, pharmaceuticals, and food products.
- Plastic Ban: Government policies such as the ban on single-use plastics have shifted the focus toward paper-based packaging solutions.
- Sustainability: A rising awareness about environmental sustainability among businesses and consumers is fueling the transition to eco-friendly alternatives.
Challenges:
- Rising Costs: High raw material costs, particularly of wood and pulp, pose challenges to profitability.
- Competition: The industry faces stiff competition from other sustainable packaging options.
Future Outlook:
- Industry experts project that India’s paper and packaging market will continue to grow as businesses adopt sustainable practices and consumers prioritize eco-friendly products.
This growth trajectory reflects India’s pivotal role in the global paper industry’s transition toward sustainability and innovation.
