Paper Packaging Industry in India Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

India Paper and Paperboard Packaging Market Analysis

The India Paper And Paperboard Packaging Market size is estimated at USD 13.72 billion in 2025, and is expected to reach USD 18.92 billion by 2030, at a CAGR of 6.63% during the forecast period (2025-2030).

The Indian paper and packaging industry has witnessed significant transformation driven by changing consumer preferences and technological advancements. With India's overall size of the packaging industry market in India valued at over USD 70 billion in 2023, paper packaging has emerged as a crucial segment gaining prominence across various sectors. The industry's structure is characterized by approximately 600 paper mills, with twelve major players dominating the market landscape. Despite the growing market, India's per capita paper consumption remains relatively low at 15 kg compared to the global average of 57 kg, indicating substantial growth potential in the domestic market.

Technological innovation and product development have become cornerstone strategies for industry players seeking competitive advantages. Paper-based packaging solutions have advanced significantly, particularly in food preservation applications, with corrugated board packaging gaining popularity for fresh produce transportation. The industry has witnessed the emergence of sophisticated manufacturing processes, including high-temperature bonding techniques for bacterial elimination and the implementation of aseptic packaging technologies utilizing hydrogen peroxide sterilization methods to enhance product shelf life.

Recent industry developments highlight the increasing focus on sustainable and innovative solutions. In October 2023, Pakka's collaboration with Brawny Bear to launch India's first compostable flexible packaging marked a significant milestone in sustainable packaging innovation. Similarly, in December 2023, Andhra Paper's investment in barrier-coated products and modernization initiatives, including the development of niche products like carry bags and straw paper, demonstrates the industry's commitment to diversification and technological advancement.

The paper sector in India is experiencing a shift toward value-added products and specialized solutions. Companies are increasingly investing in research and development to create innovative packaging solutions that address specific industry needs while maintaining environmental sustainability. The industry has seen the introduction of various specialized products, including cup stock, pharma print, and high BF virgin kraft, catering to diverse end-user requirements. This evolution is supported by automated manufacturing processes and quality control systems, enabling producers to meet international standards while maintaining cost-effectiveness and environmental responsibility.

India Paper and Paperboard Packaging Market Trends

Rapidly Growing Food Packaging Sector in India

The food packaging paper sector in India is experiencing substantial growth, driven by evolving consumer preferences and expanding food service infrastructure. The dairy industry serves as a prime example, with exports reaching 67,572.99 MT valued at USD 284.65 million in 2022-2023, necessitating advanced paper packaging solutions for maintaining product integrity. The rapid expansion of food service chains, exemplified by Domino's Pizza's presence across 393 cities with 1,816 stores as of March 2023, has created increased demand for specialized paper and paperboard packaging solutions. These paperboard packaging materials are particularly crucial for handling moist or greasy items, with specialized boards including white line chipboard and solid bleached surface board providing essential grease-resistant properties.

The health food segment is emerging as another significant driver for paper packaging innovation, with high-fiber breakfast products generating a market value of USD 0.3 billion in 2023. Paper packaging has become instrumental in various food industry sectors, including bakeries, snacks, and dry goods such as spices and tea. The cylindrical paper in packaging tubes offer efficient storage and transportation capabilities while maximizing shelf space utilization. Food producers, particularly prominent FMCG brands, are actively transitioning towards paper-based packaging materials, driven by the materials' versatility in protecting product freshness, ensuring safety, and maintaining nutritional value while offering customization options for brand visibility and consumer appeal.

Growing Adoption of Environmentally Sustainable Packaging Across Different Industrial Sectors

The shift towards environmentally sustainable packaging solutions is gaining significant momentum across India's industrial landscape, particularly in the e-commerce sector, which generated USD 103 billion in online retail sales in 2023. This transition is characterized by the increasing adoption of corrugated boxes, which offer superior product protection through their fluted, structured interior while maintaining eco-friendly credentials. The sustainability drive is particularly evident in the Direct-to-Consumer (D2C) segment, which is projected to reach USD 60 billion by 2027, where brands are actively seeking packaging solutions that align with environmental consciousness while ensuring product protection.

The adoption of sustainable packaging is further reinforced by the material's inherent recyclability and its alignment with modern business sustainability goals. Packaging paper materials are becoming increasingly popular due to their eco-friendly properties and ability to be easily recycled and reused. This trend is particularly visible in the food and beverage industry, where manufacturers are setting ambitious targets to reduce plastic usage in favor of paper-based alternatives. The industry's commitment to sustainability is reflected in the development of innovative solutions, such as paper in packaging tubes for dry goods and specialized cartons for dairy products, which combine environmental responsibility with functional efficiency in protecting and preserving product quality.

Segment Analysis: By Product Type

Corrugated Boxes Segment in India Paper and Paperboard Packaging Market

The corrugated box market size in India continues to dominate the Indian paper and paperboard packaging market, holding approximately 55% market share in 2024. This significant market position is driven by the explosive growth of e-commerce and advancements in digital printing technologies, as corrugated boxes represent about 80% of packaging demand in the e-commerce sector. The segment's strength is further reinforced by its versatility across various industries, from food and beverages to electronics and pharmaceuticals. Modern die-cut corrugated containers have gained immense recognition for their durability and customization capabilities, particularly in shipping specific items. The industry's eco-friendly nature, consuming about 7.5 million MT per year of recycled kraft paper, has also contributed to its market leadership.

Folding Cartons Segment in India Paper and Paperboard Packaging Market

The folding cartons segment is projected to experience robust growth at approximately 7% CAGR from 2024 to 2029, driven by increasing consumption of packaged foods and beverages in India. The segment's growth is characterized by significant technological advancements in manufacturing processes and rising demand for sustainable packaging solutions. The market is witnessing substantial investments in new capacities and expansion of existing capabilities by both local and international players. The growth is further supported by the increasing adoption of recycled-grade packaging in non-contact categories such as breakfast cereals and tea, along with the rising emphasis on innovative labeling and smart packaging solutions. The segment's expansion is also bolstered by the pharmaceutical sector's growing demand for paperboard cartons.

Remaining Segments in Product Type Segmentation

Other product types in the market, including flexible paper packaging and liquid cartons, play a crucial role in serving specific industry needs. These specialized packaging solutions are gaining traction due to their unique capabilities in addressing particular packaging requirements, especially in the food and beverage sector. The segment encompasses various innovative solutions such as paper pouches, kraft paper packaging, and aseptic liquid cartons, which are becoming increasingly popular due to their sustainability features. The versatility of these alternative packaging solutions, combined with their eco-friendly characteristics, makes them particularly attractive for businesses looking to differentiate their products while maintaining environmental responsibility.

Segment Analysis: By End-User Industry

Food Segment in India Paper and Paperboard Packaging Market

The food segment continues to dominate the Indian paper and paperboard packaging market, holding approximately 30% market share in 2024. This significant market position is driven by the rapidly growing food packaging sector in India, particularly in areas like packaged foods, bakery products, ready-to-eat meals, and processed foods. The segment's growth is further supported by increasing consumer awareness about sustainable packaging solutions and the shift from plastic to paper-based packaging materials. Major food manufacturers are making substantial efforts to provide sustainable materials and packaging, functional and convenient displays, and healthier food options, while paper bags are becoming increasingly popular in restaurants, hotels, and cafes.

Personal Care and Household Care Segment in India Paper and Paperboard Packaging Market

The personal care and household care segment is emerging as the fastest-growing segment in the Indian paperboard packaging market, with an expected growth rate of approximately 7% during 2024-2029. This growth is primarily driven by easier access, growing awareness, and changing lifestyles in the personal care sector. The segment is witnessing significant innovation in terms of sustainable packaging solutions, with manufacturers increasing the production of lightweight packaging solutions that have lower carbon footprints and are recyclable. The expansion of the cosmetics, personal hygiene, and household care industries, coupled with the increasing focus on eco-friendly packaging solutions, is providing significant growth prospects for industry participants.

Remaining Segments in End-User Industry

The other significant segments in the market include beverages, healthcare, and hardware and electrical products, each serving distinct packaging needs. The beverage segment is driven by the increasing demand for sustainable packaging solutions for fruit juices, alcoholic drinks, and meal replacement shakes. The healthcare segment benefits from India's position as a major pharmaceutical manufacturer and exporter, requiring specialized packaging solutions for medical products. The hardware and electrical products segment caters to the growing electronics and electrical equipment industry, with a focus on protective packaging solutions. These segments collectively contribute to the market's diversity and overall growth, each adapting to increasing sustainability requirements and changing consumer preferences.