Paper consumption in India is likely to witness 6 to 7 per cent annual growth and will reach 30 million tonnes by FY 2026-27, largely driven by emphasis on education and literacy coupled with growth in organised retail, according to industry body IPMA.
The paper Industry holds immense potential for growth in India as the per capita consumption globally is one of the lowest, the Indian Paper Manufacturers Association (IPMA) said in a statement.
“Around 15 per cent of the world population stays in India but consumes only 5 per cent of the total paper produced in the world,” the statement said.
The emphasis on education and literacy coupled with growth in organised retail and demand for better quality paper are the major drivers of growth.
Moreover, there has been continued demand for quality packaging of FMCG products, pharmaceuticals, textiles, organised retail, booming e-commerce, and other segments, it said.
According to industry body IPMA, paper consumption in India is projected to grow by 6-7 per cent per annum in the next five years so as to reach 30 million tonnes by the year FY27, making it the fastest growing paper market in the world.
“Paper Industry in the country has undergone a transformation of sorts in the last few years. The industry has gone up the sustainability curve and has become far more technologically advanced.
“In the last five to seven years, an amount of over Rs 25,000 crore has been invested in new efficient capacities and induction of clean and green technologies,” IPMA President A S Mehta.
The estimated turnover of the industry is Rs 70,000 crore with domestic market size of Rs 80,000 crore.
Indian Agro & Recycled Paper Mills Association (IARPMA) President Pramod Agarwal said during COVID, while writing and printing paper witnessed demand contraction, the paper packaging industry fared well as the pharma sector, FMCG and growth in e-commerce played a major role in driving growth in the paper sector.
“As the economic activity opens up in the post-pandemic era, the growth momentum is likely to get further acceleration,” he said IARPMA is organising Paperex 2022 – an international conference and exhibition on the paper sector in the world to be held from May 10-13 at Greater Noida.