The growth in the India paper packaging industry has been largely impelled by the augmenting demand for better quality of paper packaging products and changing consumer preferences. Increasing demand for paper packaging products along with high urban population growth, rising disposable incomes and paper production in India are anticipated to further stimulate the country’s overall paper packaging industry in the following years.
A higher demand of paper packaging products especially an increased trend in the usage of folding cartons has been observed in India. The increase in the folding carton has been observed on account of factors such as increasing FMCG and food & beverages sector. The corrugated box market has been increasing mainly due to development of the country’s logistics sector and escalating exports in the country.
The market size of the paper packaging industry in India has increased from INR – million in FY’2009 to INR – million in FY’2014 at a CAGR of 11.7%. The India paper packaging industry registered sales revenue of INR – million in FY’2014, increasing from the previous year at a rate of 12.2%. The India paper packaging industry, which has been growing at a CAGR of ~ in terms of revenue over the period FY’2009-2014, is expected to perform reasonably well in the coming years on account of significant rise in the demand for quality paper packaging products and increase in consumer spending in India.
Corrugated boxes have continued to dominate the India paper packaging industry with a market share of – % in FY’2014. Folding carton market made a contribution of INR – million in FY’2014 which increased from INR – million in FY’2009 at CAGR of – %. The industry has been traditionally dominated by the unorganized sector in terms of revenue generated. Kraft Paper has been the most used paper in the paper packaging industry with a market share of – % and revenues of INR ~ million in FY’2014. ITC, TCPL, Parksons Packaging, Horizon Packs, TGI Packaging Pvt. Ltd, Chandra Packaging are the few leading players in the India paper packaging industry.