India: Fastest Growing Paper Market in 2023-24

Mumbai, Sep 4 (PTI) India remains the fastest-growing paper market in the world with domestic consumption of packaging paper and paperboard growing at 8.2 per cent in 2023-24, a report said on Wednesday.

According to the report by Indian Paper Manufacturers Association (IPMA) for 2023-24, packaging paper & paperboard market is growing at an annual rate of 8.2 per cent in the country.

The domestic packaging paper & paperboard market stands at about 15 million tonnes which is nearly 65 per cent of the total paper, paperboard and newsprint market of 23 million tonnes in the country, the report said.

Demand for better quality packaging of FMCG products, textiles, pharmaceuticals, among others, as well as, booming e-commerce and rising healthcare spends are among the factors that are driving the growth of packaging paper & paperboard market in India, it said.

The ban on single-use plastic, with paper offering a sustainable environment-friendly option, has also emerged as a key demand driver for these products , it added.

“Overall, the demand for paper in India is growing at 6-7 per cent per annum, making it one of the fastest growing markets in the world,” the report said.

Writing & printing (W&P) paper market, which is traditionally associated with consumption of paper in the country, is growing at around 3 per cent and within this, copier paper demand is growing at the fastest rate of 4.5 per cent, it said.

Per capita paper consumption in India is currently at a low of 16 kg as against the global average of 57 kg. Developed countries have 200+ kg of per capita consumption of paper, as per the report.

"Per capita paper consumption in India is projected to increase over time with increasing levels of literacy, higher growth of organised retail and need for packaging, and overall economic development", said Pawan Agarwal, President IPMA.