Global Paper Industry overview and Indian Paper Industry outlook

Global paper industry overview and Indian paper industry outlook

- Specialty paper, which includes tissue, thermal paper, and other niche applications, is expected to grow at a health rate of 11-13% CAGR from fiscal 2025 to fiscal 2027.

The Pulp and Paper Times

Global demand for paper and board is estimated to grow by 1-2% in CY24-26. The Writing and Printing (W&P) segment which witnessed a 0-1% decline, is expected to see further demand reduction due to digitisation. Newsprint demand is also experiencing a contraction of 1-3%. Demand is expected to decline further with the rise of e-paper readership. The paperboard segment is expected to grow by 2-4% in CY24-26 due to rising demand from e-commerce and pharmaceutical industries. Long term demand for the paper industry will be driven by the paperboard sub-segment.

In CY24, the global pulp industry witnessed firming up of prices. Softwood and hardwood pulp prices increased by ~7% and 8% respectively. Supply chain disruptions can cause volatility in pulp prices in the short term; however, prices are expected to remain range-bound in the long term.

In India, the paper industry relies primarily on agro-based raw materials and wastepaper due to limited availability of pulpwood. In 2024, wastepaper prices increased by approximately 20% year-on-year on account of increasing freight costs due to disruptions in the Red Sea.

The pulp and paper industry is undergoing structural changes, driven by growing environmental awareness and digital disruption. Rising demand for sustainable, recyclable packaging has prompted companies to innovate ecofriendly products and enhance supply chain transparency. Simultaneously, declining demand for traditional paper due to digital adoption is shifting industry focus toward packaging and specialty paper segments.

Sustainability remains a key priority, with investments in recycling technologies such as de-inking and fibre recovery aimed at improving recycled pulp quality and reducing reliance on virgin materials while also reducing the carbon footprint. These initiatives support the industry’s transition to a circular economy and promote long term resource efficiency.

INDIAN PAPER INDUSTRY OUTLOOK

The demand for paper and paperboard is estimated to have grown by 6-7% year-on-year in fiscal 2025. Healthy demand from end-use industries like FMCG, e-commerce and pharma bodes well for the packaging segment. The newsprint segment witnessed a de-growth of 0-1% in 2025. Specialty paper, which includes tissue, thermal paper, and other niche applications, is expected to grow at a health rate of 11-13% CAGR from fiscal 2025 to fiscal 2027. This growth is partly driven by increased awareness post-Covid, rising disposable incomes, rapid growth in the tourism and hospitality industry. The writing and printing segment has maintained steady growth rate at 2-3% versus global de-growth of approximately -0.5%.

The industry is expected to face margin pressures due to increasing input costs, cheaper imports, and new capacity additions. Despite short-term margin contractions and high import volumes impacting domestic manufacturers, long-term prospects remain positive.

TISSUE PAPER

India’s tissue paper market is experiencing a strong growth of 11-13 %, driven by rising hygiene awareness, increasing disposable incomes, and changing lifestyles. Urbanization and the growth of hospitals, hotels and restaurants are strengthening the demand for tissue products like facial tissues, toilet rolls, and kitchen towels. End customers are increasingly becoming environmentally conscious, leading to the rapid growth of eco-friendly options.

WRITING & PRINTING

Despite the rapid move towards digitization, the printing and writing paper market is expected to grow at a modest CAGR of 2-3% from 2023 to 2027. Most of this growth will come from the expanding ‘copier’ segment. Consumers are expected to adopt a ‘print and digital’ approach.

Over the medium term, newspaper demand is expected to decline by a 4-6 % CAGR from fiscals 2025 - 2027 due to the shift to digital media for news consumption.

Higher enrolment of students in schools, implementation of the National Education Policy (NEP), and increased government spending on education through initiatives like the Sarva Shiksha Abhiyaan will drive the demand for cream wove and maplitho paper. 

Demand for copier paper is expected to grow at a healthy 5-7% CAGR through fiscal 2027, while growth for coated paper is expected to remain moderate at 2-4% CAGR during the same period.

Capacity additions are expected to take place primarily in the paperboard segment among organised players, due to better demand prospects, lower capital intensity, and relatively easier availability of raw materials.

The above report has been extracted from Orient Paper and Industries Limited’s Annual Report for FY 24-25
 

Published at : Apr 28, 2026 10:06 AM (IST)

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