Paper, print and print packaging in India

The paper, print, and print packaging industries in India are distinct sectors, each with its own operations, challenges, and market drivers. However, they are interconnected by paper, which is the output for the paper industry and an essential input for printing and packaging. This interdependence necessitates a shared understanding of each industry’s challenges, strategies, and growth paths to establish a common roadmap for survival and growth.

20 Dec 2025 | By PR Ray

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.