India ahead of China in paper market in spite of disposing threats : Bonafide Research

India has emerged as the world’s fastest-growing paper market with a CAGR of 6-7%, leaving behind China, the biggest producer of paper globally.
The Rs 60,000-crore Indian paper industry achieved this significant growth, fighting odds of both raw material scarcity and competition from cheaper imports.
“China’s paper market has grown only 4.6% per year, while the global paper production in the current year is projected to grow 1-1.5%. In the last 10 years, the domestic demand has almost doubled from around 9 million tonnes in FY 2007-08 to over 17 million tonnes in 2017-18. At the same time, with a CAGR of 6-7%, India counts on touching about 20 million tonnes by FY 2019-20..
In the last seven years, imports of paper and paperboard have risen at a CAGR of 16.11% in value, and 18.15% in volume terms. Imports are growing at a very high rate as compared to the increase in domestic production rate.
With a per capita consumption of paper being only 13-14 kg per annum in India as compared to the global average of 57 kg, not to talk about around 200 kg in developed countries, the opportunity for growth in our country is huge.
Another major boon to India is, setting up the world’s biggest paper mill in Ramayapatnam in Andhra Pradesh by Indonesian pulp and paper giant Asia Pulp & Paper Group (APP). This is one of the largest FDIs in a greenfield project in India at Rs 24,500 crore.
The mill will apparently have a capacity of 5 million tonnes per annum. The company has reportedly identified the 2,500-acre site along the coast already. It will produce specialty paper, printing paper, writing paper, and packaging paper. The company chose Andhra Pradesh as the land is along the coast which will make import of raw materials and export to big markets, such as China, easier.
‘India Paper Market Outlook, 2023′ published by Bonafide Research, gives a comprehensive analysis of the paper market of India. Over the last few years, India is experiencing major growth in paper product sales. The continuous improvement of literacy rates, the enhancement of consumers’ healthy lifestyle, E-commerce, consideration of personal grooming, and extended lifespan, plus improvements in conditions and distribution channel development in rural areas, has all created opportunities for expansion of the paper market. An increase in paper, paperboard, and packaging materials is due to increased use of electronics, ready to cook meals, and pharmaceuticals.
India paper market is calculated to grow with a CAGR of more than 10% in value terms during the review period starting from 2011-12 to 2016-17 and the market is anticipated to reach more than Rs. 75,000 crores at the end of the forecasted period year 2022-23. Paperboard & industrial packaging paper, paper stationery, newspaper print, and specialty paper altogether creates the overall paper market. As the paper industry of India is becoming more competitive by adding improvements of key ports, roads & railways, and communication facilities, revision of forest policy is required for the wood-based paper industry so that plantation can be raised by industry, cooperatives of farmers, and state government. In addition, the growing Indian economy, the rising disposable income of consumers, higher literacy rate, growth of the FMCG market, etc. encourage the use of paper for writing, printing, newspaper, packaging, and much more. Among them, paper for paperboard and packaging is used in the highest ratio of the total paper market. The emerging segment of paper is specialty paper which includes paper use in a bank, bond, cheque, currency note, paper for security printing, stamp paper, etc. has the wider opportunities for growth in the near future.
As aggressive environment changes and rising pollution in the country, make people shift their preference over paper from plastic for packaging and also the support of government encourage the use of paper. Due to technological advancement, the wide availability of eco-friendly paper products available encourages market growth. Marketers are trying to give more innovative products with high durability show the future growth of the paper market.
Major companies that operate in the paper market in India are ITC Limited, Tamil Nadu Newsprint and Papers Limited (TNPL), J K Paper Limited, Ballarpur Industries Limited, Century Pulp and Paper Limited, The West Coast Paper Mills Limited, International Paper APPM Limited, Seshasayee Paper & Boards Limited (SPB), Emami Paper Mills Limited, N R Agarwal Industries Limited (NRAIL).
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