Amidst growing worries due to the shrinking pace of growth during FY 2020 and FY 2021, attributed primarily to rising digitisation which poses a threat to printing and writing paper (PWP), especially in the newsprint segment, along with Covid-19 propelling our lives to be thrust indoors, the paper industry revenues nosedived by 2.3% and 18.3% respectively. 

In 2023, a revenue growth of about 42% was observed, but in FY24 due to some moderation, the ICRA expects the volume growth to be an estimated 2-5% compared to the estimated 7% of 2023. 

Currently, the domestic market share is about 60-65% via newsprint. Printing and writing paper brings about 30-35% on a consolidated basis. Paper mills, which have been a supplier to all forms of technology (from ancient to modern), use raw materials like wood, bamboo, wheat, straw and several others. 

The ICRA forecasts that the demand for packaging materials in India will surpass the demand for PWP goods, which is overall much lower than the global average. 

The economic growth is also supported by a rising middle class, increasing urbanisation and higher disposable incomes which further drive consumption and consequently the demand for packaged goods.

Flexible packaging too remains a major segment contributing to the segment. The demand for sustainable and eco-friendly packaging is on the rise influencing market dynamics. 

The demand from the packaging segment mostly comprising eCommerce goods, food, FMCG products, textiles, fibres and pharmaceutical sectors and the growth of the scope of personalised and interactive packaging, many paper manufacturing companies are hoping to expand their shares in the market.