India Paper Packaging Market Size (2024 - 2029)

India Paper Packaging Market Analysis

The India Paper Packaging Market size is estimated at USD 15.96 billion in 2024, and is expected to reach USD 38.87 billion by 2029, growing at a CAGR of 19.48% during the forecast period (2024-2029).

• India, known for its diversity and innovation, is rapidly revolving toward sustainable packaging solutions, with a significant focus on paper-based packaging. This shift comes as global green practices around eco-friendliness intensify. As the world embraces green practices, businesses across the country are leading the way in adopting effective paper packaging solutions that are not only eco-friendly but also practical and cost-effective, supporting market growth.
• The paper packaging business experienced growth over the past years due to changes in substrate choice, new market expansion, ownership dynamics, and government initiatives to ban the usage of certain plastic packaging products. As sustainability and environmental issues are continuously being emphasized by businesses and customers, various innovations catering to paper packaging are expected to drive market growth in India.
• Furthermore, an increasing number of people in India are supporting the replacement of plastic bags with paper bags as a result of growing awareness of the ban on single-use plastic bags, which is further projected to propel market growth. For instance, according to a survey by Inshorts on World Paper Bag Day in 2023, 80% of respondents in India expressed their desire for plastic bags to be completely replaced by paper bags in all stores.
• With a considerable increase in organized retail in India, the demand for paper packaging is expected to increase in supermarkets and modern shopping centers. The Central Pollution Control Board (CPCB), a federal agency under the Ministry of the Environment, released a list of steps to be taken to outlaw specific single-use plastic products. Such measures are propelling the demand for paper packaging products.
• Additionally, the e-commerce sector's rapid expansion is another major driver of the Indian paper packaging market. With a growing number of online shoppers, the demand for secure and lightweight paper packaging has surged. The paper's cost-effectiveness and adaptability for various products further fuel this trend. For instance, major e-commerce players like Amazon India are working on a plan to eliminate plastic packaging with the use of recyclable paper packaging in India. However, the increasing prices of kraft paper, a key raw material, is resulting in increased prices of paper packaging, challenging market growth.
• As a result of the COVID-19 pandemic, the increased prices of raw materials and energy, coupled with a shortage of recycled fibers due to concerns about wastepaper collection, alongside the reverberating effects of supply chain disruptions, have collectively impacted the paper packaging industry. As lead time increased, leading to demand potentially surpassing capacity, segments like the carton packaging were negatively impacted. The pandemic-induced supply crisis resulted in many retail outlets closing, leading to declines in demand for paper packaging.

India Paper Packaging Industry Segmentation

Paper packaging is a broader category encompassing various packaging products made from paper-based materials and widely used and versatile solutions for protecting, storing, and transporting a diverse range of goods. The major types of paper packaging used across industries include corrugated boxes, folding cartons, paper bags, and liquid boards.

The Indian paper packaging market is segmented by product type (corrugated boxes, folding cartons, paper bags, and liquid board) and end-user industry (food, beverage, healthcare, personal care and household care, hardware and electrical products, and other end-user industries). The market sizes and forecasts are provided in terms of value (USD) for all the segments.