PRODUCTION AND CONSUMPTION
In 2023–24, India’s paper industry produced approximately 26-million tonnes of paper and paperboard. The printing and print packaging sectors consumed nearly 22-million tonnes (around 85%) of this output, underscoring their critical importance. Conversely, paper remains the single most significant input for these user industries.
On average, paper accounts for 50–65% of overall input costs in print and packaging, making it a strategic resource. Similarly, printing and packaging represent the primary outlets for the paper industry’s output.
PAPER INDUSTRY: SCALE AND STRUCTURE
The Indian paper industry represents an investment of approximately INR 80,000-crore, with about 850 units producing paper and paperboard. It has a Compound Annual Growth Rate (CAGR) of 5–6%, generating 26-million tonnes annually (2023–24). However, the industry is fragmented and uneven.
PAPER INDUSTRY: INVESTMENT REALITIES
Fresh investments in greenfield projects are rare, with no major Indian conglomerate venturing into new paper manufacturing. Even brownfield expansions account for only approximately 15% of total investments, largely focused on:
• Automation
• Clean energy
• Effluent treatment
• Recycled fibre efficiency
Of the INR 12,000-crore brownfield investments planned, only INR 4,000-crore directly benefits the printing and packaging sectors through product development. The rest targets compliance, infrastructure, or operational efficiency.
Barriers to investment include:
• Policy ambiguity and lack of a long-term roadmap
• High capital intensity, especially for greenfield projects
• Land availability constraints
• ESG compliance pressures
• Markets driving “just-in-time” investment strategies
INDUSTRY RESPONSES
Print Packaging Innovations:
• Digital finishing and customisation (short runs, prototyping)
• Biodegradable and compostable substrates (plant-based coatings, barrier papers)
• Smart/active packaging (NFC, RFID, QR, anti-counterfeit, moisture/temperature-sensitive layers)
• Lightweight and engineered fibre solutions (microflute boards, high-strength blends)
• Circular economy solutions (layer separation, recyclability, closed- loop systems)
PRINTING INNOVATIONS:
• High-speed digital printing (inkjet, electrophotography)
• Eco-friendly inks (water-based, UV-curable, vegetable oil-based)
• Automation (prepress calibration, ERP/CRM integration)
• Hybrid presses (offset + digital) for cost-efficient personalisation.
The challenges for the print and print packaging industries are in consequence of dynamic end-product user preferences, and the responses to these challenges are
essential for the growth of these two industries and, therefore, unavoidable.
THE PAPER INDUSTRY: THE WAY FORWARD
To align with the evolving needs of printing and packaging, the paper industry must prioritise developments in the following areas:
Area - development focus
• quality and consistency - uniform GSM and thickness improved opacity, moisture resistance, dimensional stability
• Sustainability - lightweight grades, higher recyclability, reduced carbon footprint
• Technology - precision coating/ finishing, digital print compatibility, smart papers (RFID/QR)
• Customisation and flexibility - shorter runs, faster turnaround, specialised solutions
• Specialty and value addition - high-strength Kraft, coated boards, barrier papers, biodegradable/security paper
• Research and skill development - R&D promotion, lab upgrades, training of paper-tech professionals
Implementation will require prioritisation and collaboration. A structured inter-industry dialogue platform—linking paper producers with printing and packaging users—can identify immediate focus areas, ensuring mutual growth and a win–win future.
REFERENCES:
• IPMA Annual Reports and Industry Status
• FICCI – Paper Industry Reports (Sustainability, Growth Trends, Packaging Needs)
• CII – Paper Sector Insights
• Ministry of Commerce and Industry, Government of India – Paper and Paperboard Sector Updates
• CRISIL Research on Indian Paper Industry
• PwC and EY – Reports on Packaging Industry Trends in India
• Smithers Pira: Future of Global Printing and Packaging
• Indian Institute of Packaging – Packaging Trends Survey, 2023
PRODUCT SEGMENT - PAPER AND BOARD SHARE IN INPUT COST - END PRODUCT USAGE
Corrugated packaging 60–70% Bulk packaging
Folding carton boxes 50–70% Primary cartons
Labels and flexible packs 40–50% Flexible packages
Commercial prints 40–60% Books, brochures, stationery, Print on Demand
High-end premium packs 20–40% Foiled/embossed luxury cartons, smartphone and gift boxes
UNIT CATEGORY - ESTIMATED UNITS - SHARE OF PRODUCTION (%)
Very large or large – 15-20 paper mills 45%
Medium - 160–170 - 20–25%
Small - 600–630 - 5–15%
CHALLENGES INCLUDE:
100–150 units lying closed.
Many operational units rely on outdated, uneconomical processes.
Production is concentrated in a handful of large mills, restricting buyers’ choices.