The Paper and Paperboard in India are expected to grow at CAGR of 5.3% during the forecast period of 2021-2026. This market is growing rapidly owing to the higher growth of food and beverages, cosmetics, and other industries in India. Moreover, different government initiatives to reduce plastic wastes are also influencing the growth of this market.
- As per the data of Associated Chambers of Commerce and Industry India, the market size of the Organised food is expected to reach INR 780 million in 2020. Hence, raising awareness of consumers and the growth of the organized food sector in India is influencing the growth of the market.
- According to the Indian Paper Manufacturers Association (IPMA), the market size of the Indian Paper and paperboard market is 16.1 million tonnes in 2019. Moreover, the packaging consumption in India increased by 200% from the previous year, and it has risen from 4.3 kg per person per annum (pppa) to 8.6 kg pppa.
- The demand for fruit pulp, juices, and other concentrates, along with sauces or bottles of ketchup, is increasing the demand for paper and paperboard packaging in India. Moreover, as per the data of Banco do Nordeste, the alcohol consumption in India was 6.23 billion liters in FY 2019. The consumption is expected to reach 6.53 billion liters in FY 2020. Hence this increasing trend will influence the demand for this market.
- The ongoing recycling rate and improving logistical efficiency are the major trends of this market due to its lightweight, biodegradable, and recyclable features. According to the All India Plastics Manufacturing Association, India would eliminate single-use plastics by 2022. However, the high cost of production and technological obsolescence are the major market restraints for this market.
- Furthermore, the lack of packaging machinery manufacturing ecosystems is one of the major restraints for this market. This limited manufacturing environment has led to the very high import of machinery from countries, like China, Taiwan, Germany, Italy, the United States, and Switzerland, among others. However, in 2020 the government limits the investment capability of small and medium enterprises to 5 crores, thereby restricting any possibility of these setups developing their inhouse machinery manufacturing capabilities. Hence this limited investment opportunity can influence the growth of this market.
Key Market Trends
Folding Cartons will Hold the Significant Market Share
- Carton boards or paperboards are mostly used for folding cartons owing to its stiffness, rigidity, and toughness, which can provide compression strength to protect products during transportation. According to the Indian Paper Manufacturers Association (IPMA), the production of packaging paper and paperboard reached 8.710 million metric tons, and it is growing at 8.37% year on year.
- Folding carton packaging is witnessing significant demand from food and beverage, pharmaceuticals, and retail, among others. According to the India Folding Carton Association, the Indian consumer packaging market is expected to reach 1,500 billion by 2021, due to the widespread adoption of organized retail. Additionally, Emami Paper Mills is also investing USD 285 million to set up a 4,50,000 metric ton per annum multi-layer coated paper and packaging board manufacturing plant at Bharuch in Gujarat to cater to the market potential of this untapped market.
- These Folded carton boards are mostly used in the e-commerce, food, and beverages industry. Moreover, owing to the COVID 19 pandemic, the retail sales of essential and staple foods have increased significantly. Additionally, different food delivery centers have increased the contactless food delivery service for its customers. Hence this ongoing trend is stimulating the growth of this market.
- Moreover, the significant local and international in this market are focusing on built new capacities and expanding their existing capabilities to meet the massive demand for Folding carton products. For instance, Nine Dragons Paper of China invested USD 630 million to establish a paper and paperboard making plant in Maharashtra.
Growing Food Industries in India will drive the Growth of this Market
- The Food and Beverages sector in India is growing owing to the growing awareness, more convenient access, and changing lifestyles, which are fuelling the growth of this sector in India. According to Agriculture and Agri-food Canada, the sales of packaged food in India is expected to register a CAGR of 18% during the forecast period
- Additionally, the Indian e-commerce industry that is valued at USD 200 billion is driving the growth of food packaging in the country. It has led to the entry of major players, like Amazon and Flipkart, entering the e-commerce space in food. Amazon has invested USD 35 million to enter this space. Flipkart has planned to invest USD 258 million to enter the retail food space.
- The FMCG industry is one of the largest end-user for this market. According to IBEF, India is one of the largest manufacturers of food and beverages in the world, and it is contributed to 70% of global sales. However, the rise of rural consumption is driving the growth of FMCG sectors in India. India's agricultural use provides around 36 %to the overall FMCG spending, which is fuelling the growth of paperboard and folding carton market in India.
- Moreover, different Government regulations are also influencing the growth of these products in this region. In 2019 the Government of India's Ministry of Textiles extended the limit for high-density polyethylene (HDPE), polypropylene(PP) bags to cover current issues of packaging food grains. It will help the growth of paper and paperboard packaging in India.
The market is concentrated with many players in this region, and the market is highly competitive. Hence the market concentration of this market is low. With the rising demand for packaging applications, many companies are expanding their market presence by increasing their production facility and their product portfolio. The major vendors of this market are WestRock India, Trident Paper Box Industries, TGI Packaging Pvt. Ltd, Kapco Packaging, etc.
- April 2020: PR Packaging completed the deal of Iecho digital-cutter, EngView CAD software, and PaSharp pre-press software to increase their production facility. Moreover, Iecho BK1311 has a bed size of 1300×1100-mm and can operate at a speed of 1,000-mm/sec. PR Packaging will use these machines for cutting packaging applications and corrugation packaging.
- February 2020: Parksons Packaging and HP India introduced a digital printing press for carton packaging. This new agreement will help this company to produce 20 x 30-inch applications for the carton industry. According to Parkson's expectation, this agreement will also enable its capability to meet the demand of different end-user industries.
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1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET INSIGHTS
4.1 Market Overview ((Current Scenario of Industry 4.0 implementation across major APAC countries)
4.2 Industry Attractiveness - Porters 5 Force Analysis
4.2.1 Threat of New Entrants
4.2.2 Bargaining Power of Buyers/Consumers
4.2.3 Bargaining Power of Suppliers
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
5 MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Rapidly growing Food packaging sector in India
5.1.2 Growing adoption of environmentally sustainable packaging across diffarent industrial sectors
5.2 Market Restraints
5.2.1 Lack of modernize equipments for packaging in India
5.3 Impact Of COVID 19 on India Paper Packaging Industry
6 INDIA PAPER INDUSTRY STATISTICS
6.1 Domestic Paper Demand, (2013 Â– 2018)
6.2 Total Containerboard Capacity ?(Virgin & Recycled), 2010 Â– 2018
6.3 Imports of Virgin and RecycledÂ Containerboard, 2014 Â– 2018
6.4 Corrugated Paper or Paperboard
6.4.1 Import Value & Quantity, 2014 Â– 2018
6.4.2 Export Value & Quantity, 2014 Â– 2018
6.5.1 Production Value and Volume
6.5.2 Import Quantity & Value, 2014 Â– 2018
6.5.3 Export Quantity & Value, 2014 Â– 2018
7 BY GRADE(QUALITATIVE ANALYSIS)
7.1 Cartonboard - By Grade
7.1.1 WLC Â– White Lined Chipboard (GD/UD and GT/UT)
7.1.2 FBB Â– Folding Boxboard (GC1/UC1 and GC2/UC2)
7.1.3 SBB Â– Soild Bleached Sulphate Board (SBS)
7.1.4 SUB Â– Soild Unbleached Sulphate Board (SUS)
7.2 Containerboard Â– By Grade
7.2.1 White top Kraftliner
7.2.2 Unbleached Kraftliner
7.2.3 White top Testliner
7.2.4 Unbleached Testliner
7.2.5 Waste-based Fluting
7.2.6 Semi-chemical Fluting
8 MARKET SEGMENTATION
8.1.1 Folding Cartons
8.1.2 Corrugated Boxes
8.1.3 Other Types (Flexible Paper Packaging, Liquid Cartons etc.)
8.2.4 Personal Care & Household Care
8.2.5 Hardware & Electrical Products
8.2.6 Other End-user Industries
9 COMPETITIVE INTELLIGENCE
9.1 Company Profiles
9.1.1 Trident Paper Box Industries
9.1.2 TGI Packaging Pvt. Ltd.
9.1.3 Kapco Packaging
9.1.4 OJI India Packaging Pvt. Ltd.
9.1.5 Chaitanya Packaging Pvt. Ltd
9.1.6 Packman Packaging
9.1.7 TCPL Packaging Ltd
9.1.8 Parksons Packaging Ltd.
9.1.9 Horizon Packs Pvt Ltd
9.1.10 P.R. Packagings Ltd.
10 FUTURE OUTLOOK OF THE MAREKET
Secondary Research Information is collected from a number of publicly available as well as paid databases. Public sources involve publications by different associations and governments, annual reports and statements of companies, white papers and research publications by recognized industry experts and renowned academia etc. Paid data sources include third party authentic industry databases.
Once data collection is done through secondary research, primary interviews are conducted with different stakeholders across the value chain like manufacturers, distributors, ingredient/input suppliers, end customers and other key opinion leaders of the industry. Primary research is used both to validate the data points obtained from secondary research and to fill in the data gaps after secondary research.
The market engineering phase involves analyzing the data collected, market breakdown and forecasting. Macroeconomic indicators and bottom-up and top-down approaches are used to arrive at a complete set of data points that give way to valuable qualitative and quantitative insights. Each data point is verified by the process of data triangulation to validate the numbers and arrive at close estimates.
The market engineered data is verified and validated by a number of experts, both in-house and external.
REPORT WRITING/ PRESENTATION
After the data is curated by the mentioned highly sophisticated process, the analysts begin to write the report. Garnering insights from data and forecasts, insights are drawn to visualize the entire ecosystem in a single report.