An Overview of major ‘End Use’ Industries for Paper packaging
An Overview of major ‘End Use’ Industries for Paper packaging
- Advanced paper packaging solutions are likely to help the market because paper is an excellent recyclable and sustainable material
- Food production in India has increased by 9.6% and beverage production raised by 6.2% in 2023
- The performance of pharma exports in FY22 has been robust, sustaining growth despite the global trade disruptions
The below article is extracted from the book ‘Indian Paper Industry- Insights & Futuristic Dimensions’, which was prepared for Indian Agro and Recycled Paper Mills Association ( IARPMA) jointly with Eupraxia Advisory Private Limited & Inpaper International
The Pulp and Paper Times
Based on end use industry, the packaging segment is expected to maintain its dominance in the pulp and paper market. The packaging category continued to hold the largest position in the worldwide pulp and paper market due to the rapid globalization of the e-commerce and retail sectors. There is a great need for both wrapping and packaging paper. Additionally, consumers and businesses in developing economies are embracing paper packaging items due to a growing awareness on the environment. Paper packaging is in greater demand in the food and beverage industry due to its ease of recycling, potential to reduce air pollution, and ability to clean the environment. The development of packaging has had a considerable impact on soft drink consumption. The pulp and paper sector are expected to thrive because of an increase in consumer knowledge of the adverse environmental effects of plastic and the eco- friendliness of paper packaging made from fibre crops.
The printing segment is anticipated to increase significantly. Due to a predicted upward swing in the education sector, enrolment, bettering including rising literacy rates, and an increase in the number of schools and colleges, the need is likely to increase. Newsprint demand growth is anticipated to be supported by rising literacy rates, expanding circulation, and an increase in the quantity of newspapers and magazines. Food production in India has increased by 9.6% and beverage production raised by 6.2% in 2023.
Online retailing is on the rise in India, due to the growing number of smartphone users and the quick internet adoption. This increases the demand for pulp and paper for packaging, as well as the rise of the e-commerce industry. Therefore, it is anticipated that the rapid expansion of online retail in India will support the expansion of the pulp and paper market.
Advanced paper packaging solutions are likely to help the market because paper is an excellent recyclable and sustainable material. Therefore, the packaging market's expansion in the upcoming years is anticipated to be boosted by the rising demand for eco-friendly packaging materials. Moreover, it is currently the most recyclable and environmentally friendly packaging material available. Customers and producers are both adopting more environmentally friendly paper packaging solutions because of increased environmental concerns. To achieve their sustainability objectives, leading companies in the food, cosmetics, and FMCG sectors collaborate closely with paper manufacturers to develop cutting- edge paper packaging solutions. This should aid in the expansion of the pulp and paper
To create a sustainable method of being environmentally friendly, a number of foreign countries have enacted a variety of regulations restricting the usage of conventional plastics. The demand for paper bags has also increased as a practical and cost-effective substitute for plastic bags. Because of all these restrictions and regulations, stores, supermarkets, and storage providers are more inclined to accept paper-based packaging.
Growth in Drugs and Pharmaceutical Industry
The Indian Pharmaceuticals industry plays a prominent role in the global pharmaceuticals industry. India is ranked 3rd worldwide in the production of pharma products by volume and 14th by value. The sector is the largest provider of generic medicines globally, occupying a 20 per cent share in global supply by volume, and is also the leading vaccine manufacturer globally with a market share of 60 per cent. The performance of pharma exports has been robust, sustaining positive growth despite the global trade disruptions and drop in demand for Covid- 19-related treatments. The cumulative FDI in the pharma sector crossed the US$ 20 billion mark by September 2022.
Indian pharmaceutical exports achieved a healthy growth of 24 per cent in FY21, driven by Covid-19 induced demand for critical drugs and other supplies made to over 150 countries. The performance of pharma exports in FY22 has been robust, sustaining growth despite the global trade disruptions and drop in demand for Covid-19 related treatments. Carrying forward this growth momentum, drug and pharmaceutical exports during April- October 2022 was 22 per cent higher than the corresponding pre-pandemic period of FY20. Cumulative FDI in the pharma sector crossed the US$ 20 billion mark in September 2022. Further, FDI inflows have increased four-fold over five years until September 2022, to US$ 699 million, supported by investor-friendly policies and a positive outlook for the industry.
Moreover, as per the ICRA report, the GOI is planning to provide free generic medications to half of the Indian population through Pradhan Mantri Bhartiya Janaushadhi Kendra's at an estimated cost of USD 5.4 billion. In addition, the officials in September 2021 stated that India is open to work with East Asian partners on the development of generic pharmaceuticals and medical technology for the treatment of COVID-19 patients and vaccine development. This will further lead to an increase in the production of generic drugs in collaboration with other East Asian companies, thereby propelling the segment's growth over the coming years. Therefore, owing to the aforementioned factors, the generic segment is expected to witness growth at a faster pace than anticipated.
The above article is extracted from the book ‘Indian Paper Industry- Insights & Futuristic Dimensions’, which was prepared for Indian Agro and Recycled Paper Mills Association ( IARPMA) jointly with Eupraxia Advisory Private Limited & Inpaper International
Web Title: An Overview of major ‘End Use’ Industries for Paper packaging