Analysis of Paper Industry’s prospects in the next 5 years!

Posted by Admin / July 02, 2022

Analysis of Paper Industry’s prospects in the next 5 years!

Since time immemorial, Indians have used "Toddy Leaves" (Tala Patra) to communicate written opinions. The Indian paper industry, one of the oldest and most important industries with a substantial impact on socio-economic development, has undergone a tremendous transformation over the last three decades.

This sector is critical to India's overall industrial development and plays a prominent role in propelling our knowledge-based economy forward into the new century.Paper consumption in India is primarily domestic, with GDP development driving demand.

 

The key drivers of paper industry demand include an increase in government funding for education (6% of GDP), an improvement in quality of life, a booming retail industry, an unprecedented rise in demand in sectors such as food, pharma, and apparel, as well as a rise in advertising and packaging expenditures. The per capita paper consumption in India at a little over 13 kg is way behind the global average of 57 kg.

The Paper industry market size which was around 70000 cr to 80000 cr in 2020 has more than doubled with addition in capacity and rise of paper prices across the globe. According to the industry group IPMA, paper consumption in India is expected to expand by 6%-7% per year over the next five years,reaching 30 million tonnes by FY27, making it the world's fastest-growing paper market.

In 2022, the worldwide consumption of paper and paperboard stands at 416 million tonnes. Consumption is expected to rise further over the next decade, reaching 466 million tonnes by 2031. Packaging consumes the majority of worldwide paper and paperboard output.

Moreover, the prohibition on plastics and the consequent trend towards a cleaner environment is positive for the paper converter business. Paper and paper board items are appealing and clean alternatives to plastic. It is time to look beyond typical substitutes and investigate new areas, such as paper straws or paper-based packaging.

The global market share for different paper industries like packaging is 7%, specialty 20%, tissue and fluff -47%, and printing and writing 26%. Packaging and printing are expanding at an annual rate of 14%. As a result of the 1.2 billion-person population and changing demographic profile, which will place over 65% of the population in the working class and half of those under 30 years old, there will be an even greater demand for paper and paperboard.

Estimated production in terms of raw material use