Paper Trail: Taking stock of the Indian paper industry

According to paper pundits, India is the fifteenth largest paper producer globally and is witnessing robust growth in its paper industry. The market value of the Indian paper sector is expected to reach a substantial USD 19.1-billion by 2033, growing at a compound annual growth rate (CAGR) of approximately 7.5%. In the short term, the industry is forecast to grow at a selective rate of 5-7% for fiscal year 2024, fueled by a combination of domestic demand and global market trends.

The industry's growth can be attributed to several critical factors. India’s increasing literacy rates are significantly driving the demand for educational materials, especially paper used in books, notebooks, and educational resources. Furthermore, the rising demand for corrugated paper and household paper products, such as tissues, napkins, and sanitary items, is enhancing the sector’s growth. Projections indicate a steady market expansion, with paper consumption in India expected to reach 30 million tonnes by March 2027.

The global demand for paper products is also contributing to the growth of the Indian paper industry. The global pulp and paper market is anticipated to exceed USD 434.36-billion by 2031, growing at a CAGR of 2.35%. Additionally, the ban on single-use plastics is playing a significant role in propelling the demand for paper-based products as more businesses and consumers opt for sustainable alternatives. The post-pandemic recovery is further boosting paper consumption, particularly in the packaging and e-commerce sectors.

Several sectors present strong growth opportunities within the Indian paper industry. The printing market, for instance, is expected to grow to USD 45.3-billion by 2032. Meanwhile, the stationery sector was valued at USD 140-billion in 2023. The hygiene products market is projected to generate USD 14.31-billion in revenue by 2024. Additionally, the specialty papers market, which encompasses paper for various industrial and functional uses, offers substantial opportunities for innovation and sectoral growth.

Looking beyond India, the containerboard market is also experiencing growth. It is projected to reach USD 162.63-billion by 2029, growing at a CAGR of 2.05%. eCommerce is fueling the demand for packaging materials, with expectations to reach 226 million tonnes by 2032. The carton board market is estimated to grow to USD 98.41-billion by 2029, further enhancing the global demand for paper products.

In conclusion, the Indian paper industry is on a robust growth trajectory, driven by domestic demand, global trends, and sectoral opportunities. With increasing consumption, technological advancements, and a growing preference for sustainable alternatives, the Indian paper sector is well-positioned to become a dominant player in the global market.