Paper & Packaging

Advantage India

Robust
Demand

*The nation's increasing focus on food safety and quality is projected to fuel the food processing sector, which will increase demand for packaging.

*The Indian packaging market was estimated to be worth US$ 50.5 billion in 2019 and is projected to grow at a compound annual growth rate (CAGR) of 26.7% to reach US$ 204.81 billion by 2025.

*Paper and paperboard exports from India reached an all-time high of Rs. 13,963 crore (US$ 1.79 billion) in FY21-22, an increase of nearly 80%YoY

Innovation
Towards
Sustainability

*Sustainability leaders like ITC Limited, TNPL, JK Paper Limited, West Coast Paper Mills Limited, Huhtamaki PPL Limited, Emami Paper Mills, and BILT are driving change. From circular economy principles to renewable energy investments, responsible sourcing, and community engagement, these companies exemplify diverse sustainability practices, contributing to a greener future for the industry.

Increasing
Investments

*SIG, a Swiss based packaging company, laid the foundation of first aseptic carton packs in Ahmedabad in 2023 and plan to invent a sum of Rs. 880 crores over the period of 2023-2025.

*FDI inflows in the Paper and Pulp (including paper products) during April 2000 to December 2023 was US$ 1.7 billion.

Policy
Support

*As the packaging industry stands as the fifth largest industry in India, the government plans to adopt several initiatives that focus on the sustainability manufacturing methods, minimizing of plastic packaging and adoption of sustainable material for the packaging industry.

Snapshot Showcase Infographics Reports

Last updated: Jun, 2024

Paper & Packaging Industry Report

Mar, 2024

Introduction

Packaging currently stands as the fifth largest sector in the Indian economy, reflecting its pivotal role in driving industrial growth and innovation. With an annual growth rate of 22-25%, the industry has become a preferred hub for packaging solutions, bolstered by advancements in technology and infrastructure. Notably, the industry boasts a robust structural framework, comprising over 900 paper units with an installed capacity of nearly 4,990 thousand tons. Furthermore, India is home to 861 paper mills, with 526 operational units, showcasing the nation's significant capacity for paper and paperboard production.

Foreign Direct Investment (FDI) and Innovations

The government's progressive policies, including permitting 100% FDI through the automatic route, have stimulated foreign investments in the packaging sector. FDI inflows in the Paper and Pulp industry totalled US$ 1.7 billion from April 2000 to December 2023, highlighting investor confidence in India's packaging landscape. Innovative ventures, such as SIG's establishment of the first aseptic carton packs in Ahmedabad, underscore the industry's commitment to technological advancements and sustainability. With plans to invest Rs. 880 crores (US$ 106.02 million) between 2023 and 2025, SIG exemplifies the industry's drive towards pioneering solutions.

Sustainability Initiatives and Market Trends

In response to global sustainability imperatives, the packaging industry in India is undergoing a paradigm shift towards eco-friendly practices and materials. Government initiatives aimed at minimizing plastic packaging and promoting sustainable manufacturing methods are driving industry-wide transformation. Additionally, the industry's focus on food safety and quality aligns with the burgeoning food processing sector, amplifying demand for innovative packaging solutions.

Market Dynamics and Future Projections

The expansion of the middle class, enhancements in supply chain infrastructure, and the rise of e-commerce platforms are primary factors driving the packaging industry's growth trajectory. Furthermore, the increasing market size of packed food products, projected to reach US$ 3.4 billion by 2027, underscores the industry's pivotal role in supporting diverse sectors. As the industry continues to evolve, leveraging technological innovations and sustainable practices, it is poised to contribute significantly to India's economic landscape. Investments/ Developments

Recent Developments

February 2023: Cosmetics and hair care brand Revlon developed a new package for its 'Top Speed' hair colour range exclusively for the Indian market. The brand unveiled a new visual identity for products across India in the coming years.
September 2022 - WestRock Company, a sustainable paper and packaging solutions provider, acquired an HP Page Wide T1190 Press to complement and expand its portfolio of corrugated printing capabilities. The HP Page Wide T1190 Press is expected to enable WestRock to disrupt the corrugated packaging supply chain and offer superior value to its customers.
May 2022: Huhtamaki set up its first recycling plant in Maharashtra, India, as part of its CloseTheLoopinitiative. The site is spread across 2,000 square meters and has recyclers around 1,600 kg of post-consumer-used flexible plastic waste daily since it became fully operational. The recycling plant was set up with an investment of US$ 1.18 million as part of the Huhtamaki Foundation's CloseTheLoopinitiative to tackle post-consumer waste and deliver a valuable secondary resource material. It was expected to process post-consumer waste to create resin to produce refined compounds for use in household products for consumers in India.
SIG, a Swiss based packaging company, laid the foundation of first aseptic carton packs in Ahmedabad in 2023 and plan to invent a sum of Rs. 880 crores (US$ 106.02 million) over the period of 2023-2025.

In 2023, JK Paper acquired Manipal Utility Packaging Solutions for Rs 90 crore (US$ 10.87 million).
TCPL won six awards at the “IFCA Awards 2023” organised by The Indian Flexible Packaging & Folding Carton Manufacturers Association (IFCA)
TCPL Packaging Ltd has been recognized as the “PrintWeek Printing Company of the Year 2023” at the prestigious PrintWeek Awards 2023.
In September 2023, the company installed a state-of-the-art new Koenig & Bauer Printing press at its manufacturing unit at Haridwar.
In 2022, UFlex Chemicals acquires India patent for Solvent Free Pigmented Adhesive and a process for its preparation
UFlex Partners with CREDUCE to Achieve Carbon Neutrality reduce almost 175,000 tonnes of carbon emission equivalent by end of 2024
UFlex Chemicals introduce zero liquid discharge technology at its Noida facility for water & environmental protection
In 2022, TCPL recently won an award at IFCA Star Awards 2022, organised by The Indian Flexible Packaging & Folding Carton Manufacturers Association (IFCA) in September 2022 under Best Branding category for Baba 120 Paan Masala pack.
In 2021, UFlex company commissions Greenfield 45,000 MTA production capacity BOPET Film Manufacturing Plant in Nigeria
UFlex teams up with Hoffer Plastics and Mespack to launch 100% Recyclable Mono-polymer Hot-fill Pouches
UFlex Joins Alliance to end plastic waste to strengthen its global mission of building a Circular Plastic Economy
In 2020, JK Paper to announced to invest Rs 1,500 crore (US$ 181 million) in Gujarat for the modernisation and expansion of company’s existing manufacturing unit at Songadh.
In 2020, West Coast Paper Mills Ltd. partially started production at Paper and Duplex Board Division, Dandeli. UFlex to double its aseptic liquid packaging plant’s capacity.
In 2018, JK Paper to make an investment of Rs 14.5 billion to expand capacities at its Gujarat plant to expand its packaging board capacity by up to 200,000 tonnes and pulping facilities by up to Rs 160,000 tonnes.
In 2018, FlexFilms, the global film manufacturing arm of Uflex, has been granted United States Patent for Breakthrough BOPET Film used for Alu Alu Blister Pack
Uflex’s Waterless Internet Flower Packaging Wins Top Honors at Sustainability Awards 2018
Uflex becomes Indian Banks’ Association (IBA) certified Security Printer
Uflex manufactures first Glitter Printing Rotogravure Cylinder in India

Government Initiatives

The government has launched the National Packaging initiative which focuses on the following measures to promote the sector:

Set up guidelines and certain requirements for design and material of packaging used
Promote the process of moving in bulk quantities
Focus on promotion of centralized industrial activity by encouraging application of necessary and sophisticated infrastructure such as specialized logistic parks with appropriate facilities as well as packaging labs to work on designs and carry out tests
Encourage processes to reduce packaging waste by establishing material recovery facilities (MRFs)
Support domestic business to manufacture sophisticated packaging materials
Develop training facilities and certified programs of the highest order to maintain availability of skilled labour

Road ahead

The outlook for the paper and packaging industry in India is optimistic, driven by several factors including the country's growing population, increasing urbanization, and rising disposable incomes. The rapid expansion of e-commerce is fuelling demand for packaging materials, while a growing focus on sustainability is prompting the industry to innovate greener solutions. Government initiatives like "Make in India" and infrastructure development projects are expected to boost manufacturing activities and streamline supply chains.

Technological advancements are enhancing productivity and quality, while rising export potential offers opportunities for market expansion. Despite challenges such as fluctuating raw material prices and competition from alternative materials, strategic investments and a commitment to sustainability can help the industry capitalize on opportunities and strengthen its position in the global market.

Note: Conversion rate used in March 2024, Rs. 1 = US$ 0.012

References: Media Reports, Press Releases, Deloitte report, Department of Industrial Policy and Promotion website, India Paper Manufacturer Association (IPMA), Packaging Industry Association of India (PIAI), Indian Flexible Packaging & Folding Carton Manufacturers Association (IFCA), All India Plastic Manufacturers Association (AIPMA)