India continues to lead as the fastest-growing paper market globally, with domestic consumption of packaging paper and paperboard increasing by 8.2% in the 2023-24 period.This surge is primarily driven by heightened demand for quality packaging across sectors such as fast-moving consumer goods (FMCG), textiles, pharmaceuticals, and the expanding e-commerce industry. The national ban on single-use plastics has further accelerated this growth, positioning paper as a sustainable and eco-friendly alternative.
The packaging paper and paperboard segment now constitutes approximately 65% of India’s total paper, paperboard, and newsprint market, amounting to about 15 million tonnes out of a 23 million tonne market.Overall, the country’s paper demand is growing at an annual rate of 6-7%, underscoring India’s significant role in the global paper industry.
Despite this robust growth, India’s per capita paper consumption remains relatively low at 16 kg, compared to the global average of 57 kg.This disparity suggests substantial potential for future expansion, supported by increasing literacy rates, the growth of organized retail, and broader economic development.
Pawan Agarwal, President of the Indian Paper Manufacturers Association (IPMA), anticipates a rise in per capita paper consumption over time, correlating with these developmental factors.The industry’s trajectory indicates a continued upward trend, bolstered by sustainable practices and the growing preference for paper-based packaging solutions.
