Overview
The Indian paper industry is forecasted to grow from $8.6 billion in 2018 to $13.4 billion by 2024, presenting a CAGR of 7.8% from 2019 to 2024. The Indian paper industry is more inclined towards the North, South, East, and West.
As per the paper consumer segment, the western region is accountable for a heavy consuming rate in comparison to the other regions. Whereas, paper mills are concentrated in the states of Tamil Nadu, Andhra Pradesh, Maharashtra, Punjab, Madhya Pradesh, and Gujarat.
Globally, the paper industry has a notable presence in European countries including Germany, Portugal, Italy, the Netherlands, and Poland and is dominated by North American (the United States and Canada), Northern European (Finland, Sweden, and North-West Russia), and East Asian countries (such as East Siberian Russia, China, Japan, and South Korea). At present China is the world’s leading paper producer.
Source: Alphainvesco
India has always been analyzed to have an increased rate of demand for paper as compared to the western regions of the world. In India, the demand for domestic paper rose from 9.4 million tonnes in 2008 to 15.4 million tonnes in 2016.
Apart from the constant increase in the industry, per capita, paper consumption in India stands at over 14 kg, which is still well under the global average of 57 kg and considerably under 200 kg in North America.
The paper mills utilize a diversity of raw materials such as wood, bamboo, bagasse, recycled fiber, wheat straw, rice, and husk. This depends on the geographical location of the paper mill. For example, paper mills in the northern and western regions of India depend massively on agricultural residuals and wastepaper the raw material.
While pulp & paper production in southern and eastern regions utilize wood and bamboo as raw materials. The impact of deforestation on the atmosphere resulted in paper manufacturing companies to look for various alternative sources for paper production.
To save cost the paper manufacturing companies are recycling paper products as well.
For the favorable conditions for the availability of raw materials, the paper industry gained good profitability in 2019.
Source: MordorIntelligence
Due to the outbreak of the COVID-19 the economy has been witnessing a huge downfall. This downfall has also impacted every industry around the globe including the paper industry. In April, the demand for commercial papers in North American dropped year‑over‑year. On the other hand, the coated paper observed a 35% decline in demand, and uncoated paper observed a 33% decline. The most prominent decline was in copy paper which is 55% due to the closure of educational institutions.
Global Paper Board
As per CRISIL, an S&P Global Company the global paper demand will severely contract by 12-16% in the fiscal year 2020 due to the disrupted supply chain.
The global paper industry is anticipated to diminish from $896.6 billion in 2019 to $868.8 billion in 2020 at a compound annual growth rate (CAGR) of -3.1%. This is due to the coronavirus induced lockdown across the globe. However, the industry is estimated to recover at a CAGR of 7% from 2021 and arrive at $1030.7 billion in 2023.
Source: Energy&Capital
The Global Flexible Packaging Paper is assumed to rise at a CAGR of 6.0%. This rise is due to the eco-friendly packaging products are increasingly adopted by the consumers. These packagings are utilized for shopping bags, food wrappers, and tea envelopes to cigarette soft packs, inner liners, and tobacco pockets. Globally the pulp and paper industry is assumed to gain pace from the growing usage of e-commerce platforms by youngsters to purchase cosmetics, groceries, and food items.
Asia-Pacific was the largest region in the global paper products market, considering 35% in 2019. Followed by North America accounting for 26% and lastly, Africa was the smallest region in the global paper products market. The Asia Pacific is going to have a profitable growth, as China and India have seen a transformation in demand from plastic to paper due to strict criteria for the usage of plastic.
Some of the professionals in the Flexible Packaging Paper Market include BillerudKorsnas AB, Canadian Kraft Paper Ltd, DS Smith PLC, Emami Paper Mills Ltd, Gordon Paper Company Inc, Gulf Paper Manufacturing Company, International Paper Company, JK PAPER Ltd, KRPA Holding CZ a.s., McNairn Packaging, Mondi Group, Nippon Paper Industries Co Ltd, Nordic Paper AS, PG Paper Company, Pudumjee Paper Products Ltd, Rengo Co Ltd, Sappi Limited, Smurfit Kappa Group PLC, Stora Enso Oyj, and WestRock Company.
Domestic Paper Board
According to CRISIL, an S&P Global Company, domestic paper demand will severely fall by 8-12% in the fiscal year 2021 due to the consumption slowdown and disturbed exportation.
Due to the Covid-19 lockdown, India’s ₹80,000-crore domestic paper industry is on a concentration form and expects the business to recover by the following year. The extended lockdown in the industry is causing a shortage of raw material and the availability of labor. The consumption loss is approximately below 2 Million MT. However, due to the closure of schools and colleges, the demand for writing and printing paper has also declined.
Source: PGpaper
In the last nine years, imports have increased at a CAGR of 11.34 % from ₹3,411 crores in 2010 to 11 to ₹8,972 crores in 2019 to 20. The imports as per estimations are developing at a great rate as corresponded to the increase in domestic production rate with underutilization of domestic introduced capacity.
Some of the foremost professionals in the India Paper and Paper Products market are Ballarpur Industries Limited (BILT), Tamil Nadu Newsprint and Papers Limited, Genus Paper & Boards Limited, JK Paper Ltd., Century Pulp & Paper Limited, Seshasayee Paper & Boards Limited, ITC Paperboards and Specialty Division Ltd., Rainbow Papers Ltd., Westcoast Paper Mills, International Paper APPM Ltd., Khanna Paper Mills Private Limited, among others.
Summary
The Asia Pacific is set to be the foremost consumer of pulp and paper in the business.
In Malaysia, Indonesia, and Vietnam, the increasing economic growth would also impact the paper industry. As per 2020, the production of pulp and paper on a global term will reach 490 million tons. More than 15% of pulp and paper sales in the United States will happen online by 2020. For the past 20 years, China has been the largest generator of pulp and paper, accompanied by the United States.
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