Paper Packaging Industry in India Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

India Paper and Paperboard Packaging Market Analysis

The India Paper And Paperboard Packaging Market size is estimated at USD 12.87 billion in 2024, and is expected to reach USD 17.74 billion by 2029, growing at a CAGR of 6.63% during the forecast period (2024-2029).

• Over the past decade, the paper packaging industry has witnessed significant growth, driven by shifts in substrate choices, global market expansions, evolving ownership dynamics, and government-led initiatives to phase out plastics. With an ongoing emphasis on sustainability and environmental concerns, India is poised to see industry trends shaped by various innovations in paper and paperboard packaging.
• Recent advancements in paper-based packaging, especially for food preservation, have been noteworthy. A prime example is the rising popularity of corrugated board packaging for transporting fresh produce. To effectively eliminate bacteria, the layers of the corrugated board must bond at elevated temperatures. Furthermore, the recyclability of these grooved boards allows for repeated use while minimizing the risk of cross-contamination.
• In recent years, many manufacturers have adopted aseptic paper packaging. This process involves sterilizing the food product and its packaging through a hot hydrogen peroxide bath. Such aseptic paper ensures that items like milk, coffee, and fresh produce remain uncontaminated and fresh for extended periods. Reflecting this trend, industry players are increasingly investing in the development of compostable packaging.
• For instance, in October 2023, Pakka teamed up with Brawny Bear, a date-based food producer sharing Pakka's sustainability vision, to unveil India's inaugural compostable flexible packaging. This launch underscores a significant achievement for Pakka and marks a pivotal moment for India's expansive packaging industry, which boasts a valuation exceeding USD 70 billion.
• Moreover, as the region leans more toward eco-friendliness, sustainable packaging emerges as a crucial player in mitigating the environmental repercussions of packaging materials. Sustainable packaging significantly curtails waste and bolsters the circular economy by utilizing biodegradable, recyclable, and compostable materials. Furthermore, businesses adopting these eco-conscious practices often enjoy heightened customer loyalty, as consumers favor brands that resonate with their environmental beliefs. Such dynamics are fueling the surging demand for paper packaging in India.
• As paper packaging gains traction, Indian paper mills are responding by increasing capital expenditures to diversify into niche products like carry bags and straw paper. In December 2023, Andhra Paper produced barrier-coated products and invested in modernizing its facilities. APL capitalized on its strengths, adjusting its product mix to meet market demands. The company proactively developed and introduced niche offerings, including carry bags and straw paper, alongside value-added products like cup stock, pharma print, and high BF virgin kraft.
• Paper packaging boasts numerous advantages: it's fully recyclable, cost-effective, and generally more eco-friendly than many plastics. Industry data highlights a notable shift, with multiple organizations moving away from plastic-based packaging in favor of sustainable options like paper and sack-based products. Yet, it's crucial to acknowledge the environmental challenges associated with paper packaging, including susceptibility to moisture, higher energy consumption during production, and a larger transportation footprint.

India Paper and Paperboard Packaging Market Trends

Corrugated Packaging is Expected to Hold a Significant Market Share

India Paper and Paperboard Packaging Industry Segmentation

The study tracks the demand for paper and paperboard packaging products like folding cartons, corrugated boxes, and others, which are frequently used for packaging food and beverage products, such as juices, milk, and cereals. There are numerous grades of paperboard packaging. Paperboard is the most common material used to make containers, like folding cartons. Paperboard requires pulping, optional bleaching, refining, sheet forming, drying, calendaring, and winding to manufacture paper.

The paper packaging industry in India is segmented by end-user industry (corrugated packaging [processed food, fresh produce, beverage, personal care & cosmetics, household care, e-commerce, other end-user industries (transportation & logistics, healthcare, and consumer durables, among others)], folding cartons [food & beverage, personal care & cosmetics, healthcare & pharmaceuticals, tobacco, electrical & hardware, other end-user industries (toy, apparel, automotive, and household, among others)], liquid cartons [milk, juices, energy drinks, other end-user industries (dairy products such as buttermilk, cream, smoothies, etc.)]), by region (east, west, north, south). The report offers market forecasts and size in value (USD) for all the above segments.