The Future of Packaging: India's Role in Global Paper Packaging Trends

Today’s packaging is no longer just a simple item for protecting goods; rather, it has evolved into a crucial element in e-commerce, branding, consumer safety, and the overall consumer experience. The current market valuation of the global packaging industry is US$ 1.14 trillion per Mordor Intelligence, with a projected CAGR ~4%, resulting in a market worth exceeding US$ 1.4 trillion by the year 2029. As the planet moves towards greener endeavours, paper packaging is emerging as a popular trend. In India, packaging is the fifth biggest sector. Given its fast-growing economic and industrial sectors, India is expected to play a key role in influencing the future of global packaging markets.

India’s paper packaging industry
One of the fastest growing industries, the paper packaging industry’s contribution to the growth of India’s economy is vital. India currently stands as the 15th largest paper manufacturer globally and comprises more than 600 paper mills, contributing significantly to the emerging economy.

Source: Mordor Intelligence, F- Forecast

The Indian paper packaging industry is expected to grow at a CAGR of 26.7% from 2019 to 2025, which is better than the global growth rate. Several factors have been contributing to this growth, such as the expansion of e-commerce industry globally, urbanisation, the shift towards sustainable packaging, and government initiatives aimed at reducing plastic use. India has a diverse product portfolio of paper-made products used in multiple industries: kraft paper, paperboard (coated and uncoated), corrugated boxes and flexible paper packaging materials. These products help meet the domestic and global demand across various industries.

Global shift towards sustainable packaging

Driven by rising consumer awareness of environmental issues and regulatory obligations, the global packaging industry is experiencing a shift towards sustainable packaging. Governments across the globe are introducing strict measures to mitigate the use of plastic. This is the primary reason for the shift towards sustainable alternatives. Due to these reasons, paper packaging, made from biodegradable, renewable sources, is the preferred choice.

Source: MarketsandMarkets, F- forecast

As per the MarketsandMarkets’ report, the global paper packaging industry is forecasted to grow from US$ 352.6 billion in 2021 to US$ 469.2 billion by 2026, at a CAGR of 5.9%. The rising demand for sustainable packaging, a growing e-commerce industry, and progress in packaging technologies has fuelled this growth.

India’s role in the global paper packaging market

India has been a notable influence in the global paper-packaging industry, and this is evident in the trends shaping the industry globally:

• Demand for sustainable packaging

With growing environmental consciousness, there is a shift towards sustainable packaging solutions, leading to a demand surge for paper-based packaging materials considered more eco-friendly compared to plastic or other non-biodegradable options. Indian companies are at the forefront of developing innovative paper packaging solutions that cater to diverse industries. For instance, ITC Limited's Paperboard's and Specialty Papers Division (PSPD) has developed a range of sustainable packaging products, including recyclable and biodegradable paperboards. These innovations not only cater to domestic demand but also position India as a global leader in sustainable packaging.

• Export opportunities

​​​​India's paper packaging industry is increasing their presence in export markets, particularly in the Middle East, Africa, and Southeast Asia. Export of paper, paperboard and newsprint has increased almost 3 times from 532.7 thousand tonnes in 2010-11 to 1,560.2 thousand tonnes in 2023-24. This emerging trend positions India to meet the rising global demand for eco-friendly packaging solutions with the help of cost-competitive manufacturing and growing expertise in sustainable packaging.

• Emphasis on circular economy

India's emphasis on the circular economy is driving the adoption of closed-loop systems in the paper packaging industry. Companies are investing in recycling infrastructure, promoting recycled paper, and reducing waste generation. For example, Godrej Consumer Product Ltd. committed to a sustainability target until 2025 to adopt a circular economy and ensure efficient use of resources. This focus on circularity enhances the sustainability of the packaging industry and sets an example for other countries.

• Growth of e-commerce industry

The e-commerce industry is witnessing a boom in recent years. This industry has picked up pace especially after the COVID-19 pandemic, domestically and internationally. The Indian e-commerce packaging market is expected to have a revenue of US$ 15.8 billion by 2030 from US$ 3.0 billion in 2023, growing at a CAGR of 26.7%. The global e-commerce market is currently valued at US$ 8.80 trillion and is expected to reach US$ 18.81 trillion by 2029. This industry uses paper-packaging significantly for the shipping of goods. With India's exports rising in this segment, it is poised to be a major supplier of paper products globally.

Innovation in sustainable packaging

Since the last decade the world economies have started taking proactive measures towards going green. This has led to growing popularity of new and innovative enterprises to fill the paper-packaging gap. Indian startups offering modern paper-packaging products and alternatives to other packaging solutions are mentioned below: 

• Sustainable food packaging: Companies like Ecoware, agricultural waste such as paper is used to create biodegradable and compostable food packaging. These products are used in replacement of plastics especially in food delivery services. 
• Seaweed-based packaging: Zerocircle creates paper-packaging material using seaweed to eliminate a single-use plastic from industries and markets. 
• Biodegradable bags: BioGreen Packaging offers bags and films for the compostable collection of organic waste, as well as biodegradable plastics for use in landfill. In general, BioGreen bags are made following all the features regarding traditional plastic bags, but with one major difference: to make the bags biodegradable, biodegradable additives are introduced into the material. 
• Over the recent past, the usages of bioplastics are on the rise because organisations are now moving from the regular fossil fuel polymer to biopolymers which are sourced from renewable resources.
• The use of mono-material products has also increased enormously because they are made from a single material. According to a study by Smithers Research, the dimension of the mono-material film packs is expected to touch 3.8% CAGR in 2025.

Conclusion

As India’s role in the paper-packaging industry grows, they need to explore strategies such as investing in R&D and innovation, promoting sustainable production practices, strengthening the recycling infrastructure, expanding the export markets and increasing industry collaboration. This will help position India in a significant and transformative role. With a forecasted market value of US$ 469.2 billion by 2026, the worldwide paper-packaging industry presents India with a chance to take a leading role in supplying packaging material.