Trends, Demand, and Forecast in Writing and Printing Paper, Kraft Paper, and Cup Stock Paper

Trends, Demand, and Forecast in Writing and Printing Paper, Kraft Paper, and Cup Stock Paper
The Pulp and Paper Times

Writing and printing paper
Increased stationery demand: 

India’s education is decades away from digitalisation. Indian educational institutions will continue to use manual educational engagement for reasons of cost effectiveness and inclusiveness. A growing population will ensure a rising demand for paper. This growth is evident in the projected numbers: the Indian school stationery supplies market was USD 2,377.9 Million in 2023 and is expected to reach USD 3,834.9 Million by 2032, a CAGR growth rate of 5.30% in the interim. The Indian school stationery supplies market is being driven by marketing and brand-building by leading players. We see a sustained growth in India’s stationery demand on account of growing literacy and widening school access. We also believe that increased CSR spending in the education space is likely to grow the market for stationery material.

Office stationery demand:

India’s corporate growth is likely to generate a spin off in the accelerated offtake of office stationery. As India’s service driven sector grows, there will be an increased consumption of paper as a complement to IT tools and products. This market, valued at USD 75.2 Billion in 2022, is anticipated to grow to USD 80.16 Billion by 2028, growing at a CAGR of 6% in six years. The market for office supplies is expected to grow on account of increasing online purchases, start-up revolution, corporate cum legal sector growth as other paper-intensive applications.

Wedding market: 

Much as digitalised invites may have become the norm, there is still something to be said about presenting paper-based invitations; these appear far more personalised and formal. In view of this cultural trait, paper-based wedding cards are not just likely to not go away; they are likely to grow in importance. Around 3.8 Million events were expected to have been solemnized in India from November 2023 to February 2024 against 3.2 Million events in India from November 2022 to February 2023. Going ahead, the growing Indian wedding market is expected to drive the offtake of WPP.

Kraft paper

Growing packaging industry: 

Each online order for physical delivery is inevitably packaged in kraft paper. This growing trend has virtually transformed the country’s packaging sector in favour of environment friendly packaging options. The Indian packaging industry’s market size stood at USD 84.37 Billion in FY 2023-24 and is expected to reach USD 142.56 Billion by FY 2028-29, growing at a CAGR of 11.60%. 

Growing paper bag industry: 

There was a time when plastic bags were everywhere. Following a growing social awareness that single use plastics (non-recyclable) are non-beneficial for the ecology, there has been a growing shift towards paper bags. The result is that the global paper bag market size of USD 5.8 Billion in FY 2022-23 is expected to grow to USD 8.4 Billion by FY 2031-32, a 4.22% CAGR. Increasing environment concerns, government regulations, changing consumer preferences towards ecofriendly and sustainable products are expected to become a long-term direction.

Cup stock paper
Food delivery: 

The food delivery industry saw its largest growth in five years in 2020 following the pandemic. This segment is projected to grow to USD 165 Billion by 2029, marked by enhanced hygiene and a preference for biodegradable cups over nonbiodegradable materials.

Growing beverage demand: 

There was a time when people were served drinks – hot and cold beverages - in plastic disposables. There is a growing replacement of polymer with paper cup stock derived from plantation timber or agricultural resource. This makes increased lifestyle consumption linked to environment sustainability. Indian beverage revenues are estimated to grow to USD 47.6 Billion by 2026 from USD 41.4 Billion in 2021, an average growth of 2.3% year-on-year. 

Growing e-commerce: 

A big impetus for paper offtake has been derived from an unusual – and even ironic – source. Growing digitalisation is leading to e-commerce that is leading to a quicker offtake of paper (for bills and packaging brand). The Indian e-commerce market is expected to grow from USD 92.7 Billion in 2023 to USD 150 Billion in 2026 (Source: FIS 2023 Global Payments Report). Each time someone orders products or food through the net, there is a corresponding increase in paper offtake.

Indian paper industry overview:

India’s paper industry has reported some of the fastest growth rates across the globe. This upward trajectory is expected to continue as the Indian economy is wellpositioned to resist global disruptions. As the 15th largest paper market globally, India expected to record a 10.6% increase in per capita paper consumption from FY 2018-19 to FY 2026-27.

It is estimated that the total paper production in the country stood at over 25 Million Tons per annum in FY 2023-24. On account of the growing emphasis on education and literacy rate in the country, paper consumption is expected to grow by 6% to 7% annually, reaching 30 Million Tons by FY 2026-27. The market demand is attributed to the growing adoption of paper packaging and e-commerce. The Rs. 80,000 crore paper industry witnessed a growing exports momentum since five years as India engaged with UAE, China, Saudi Arabia, Bangladesh, Vietnam and Sri Lanka as a major exporting partner. The India paper packaging market size was valued at USD 15.96 Billion in FY 2023-24, and is expected to reach USD 38.87 Billion by FY 2028-29, growing at a CAGR of 19.48% during the forecast period FY 2023-24 to FY 2028-29. Consistently evolving demand from the food and beverages segment, healthcare and personal care segment is primarily strengthening the demand for paper packaging in India.
 

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