India Paper Packaging Market

India Paper Packaging Market Overview:

The India paper packaging market size reached USD 18.57 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 28.32 Billion by 2033, exhibiting a growth rate (CAGR) of 4.56% during 2025-2033.The market is driven by rising environmental awareness, government regulations banning single-use plastics, and the growing demand for sustainable alternatives. Rapid growth in e-commerce, food delivery, and organized retail sectors further fuels the need for efficient and eco-friendly packaging solutions. Consumers are increasingly favoring recyclable and biodegradable options, encouraging companies to innovate in paper-based materials. Technological advancements in durability, printability, and moisture resistance are also enhancing the appeal and functionality of paper packaging across various industries thus strengthening the India paper packaging market share.

The fast growth in e-commerce and organized retailing in India has considerably increased the demand for paper packaging. Online channels need light and strong packaging solutions based on paper for product safety and branding while delivering products. Paper-based items such as corrugated boxes, cartons, and paper bags are gaining traction because they are recyclable and economical. As internet services and smartphone penetration have grown in tier-II and tier-III cities, e-commerce sales remain on a rapid growth curve, adding further to packaging demand. To attract eco-aware consumers, retailers are also moving towards green packaging, adding strength the India paper packaging market growth.

Strong government rules on single-use plastics and increased environmental consciousness have driven the transition to paper-based packaging in India. Schemes like the prohibition of specific plastic items and consumer demand for biodegradable options are driving industries toward sustainable material adoption. As paper packaging is recyclable and compostable, it is aligned with international and national sustainability objectives. Moreover, business Environmental, Social, and Governance (ESG) commitments are compelling businesses to use alternative plastic forms that are more sustainable. This trend is further fueled by developments in paper strength and printability, rendering paper packaging not only environmentally friendly but also competitive aesthetically and functionally as well.

India Paper Packaging Market Trends:

Shift Toward Sustainable and Biodegradable Packaging

One of the most prominent trends driving the Indian paper packaging market is the shift toward sustainable and biodegradable materials. This movement is fueled by growing awareness of plastic pollution and climate change, prompting consumers and companies to seek eco-friendly alternatives. The Plastic Waste Management Amendment Rules, 2021, which prohibit the production, importation, sale, and use of specific single-use plastic products starting in July 2022, are a significant step taken by the Indian government. This regulatory action has accelerated the transition to sustainable packaging solutions. Paper packaging, being recyclable, renewable, and biodegradable, perfectly aligns with these sustainability goals. Both startups and established companies are innovating with compostable paper-based materials like molded pulp and paper wraps. Beyond regulatory compliance, businesses are leveraging eco-conscious packaging as a powerful marketing tool to attract environmentally aware consumers, making this green movement both a necessity and a competitive advantage.

Growth of Quick Commerce and Food Delivery Services

The rise of quick commerce (10–30-minute delivery platforms) and food delivery services has significantly boosted demand for functional, safe, and sustainable packaging in India. 39% of urban Indians now use rapid commerce for additional purchases, and 31% of them rely on it for their primary grocery shopping, according to the NIQ Shopper Trends 2024 survey. This surge has led major players to adopt compact, sturdy, and tamper-proof paper-based packaging that is both cost-effective and environmentally friendly. Growing consumer awareness about packaging materials is driving a preference for recyclable and plastic-free solutions. Innovations such as leak-proof paper containers, insulated wraps, and compostable trays help companies meet both functionality and sustainability goals. The recurring, high-frequency nature of food and grocery orders makes this segment a powerful volume driver, positioning sustainable India paper packaging market outlook.

Innovation in Paper Packaging Technologies

Advances in paper packaging technology are revolutionizing its use and attractiveness in various industries. Greater printing capabilities, water-proof coatings, and multi-layered paper compounds have rendered paper suitable for packaging once destined for plastic or metal. Firms are pouring money into R&D to produce high-performance paperboard that can contain liquids such as juices or milk, retain structural performance, and accommodate branding through improved graphics. Automation and intelligent packaging such as quick response (QR)-coded cartons for traceability are new trends also on the rise. These technologies allow paper packaging to cater to more industries such as FMCG, electronics, and healthcare. With increasing demand for premium and functional packaging, technology-driven paper solutions are making Indian manufacturers competitive both domestically and internationally.

India Paper Packaging Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the India paper packaging market, along with forecast at the regional, and country levels from 2025-2033. The market has been categorized based on product type, grade, packaging level, and end use industry.

Analysis by Product Type:

• Corrugated Boxes
• Folding Boxes and Cases
• Liquid Paperboard Cartons
• Paper Bags and Sacks
• Others

Liquid paperboard cartons account for the majority share in the India paper packaging market, driven primarily by the growing demand for safe, lightweight, and sustainable packaging for beverages and liquid food products. These cartons are widely used for milk, juices, dairy alternatives, and liquid food due to their excellent barrier properties, which protect contents from light, oxygen, and contamination. The rise in health-conscious consumers and urban lifestyles has led to increased consumption of packaged drinks, boosting demand for liquid cartons. Additionally, their recyclability and lower environmental impact compared to plastic bottles align with government regulations and consumer sustainability preferences. Brands are also leveraging customizable printing options on these cartons for attractive branding, making them a preferred choice in retail and FMCG sectors.

Analysis by Grade:

• Solid Bleached
• Coated Recycled
• Uncoated Recycled
• Others

Solid bleached board is a premium paper grade made from virgin fibers, offering excellent strength, hygiene, and printability. It is widely used for packaging high-end products like cosmetics, pharmaceuticals, and food items. In India, rising demand for visually appealing and safe packaging is driving growth in this segment.

In line with this, the coated recycled board is made from recycled paper with a coating layer for improved surface finish and print quality. It is cost-effective and widely used in secondary packaging like folding cartons and boxes. In India, its popularity is growing due to sustainability, affordability, and increased demand from FMCG and retail.

Along with this, the uncoated recycled paperboard is a low-cost, eco-friendly option used primarily for inner packaging, inserts, and bulk packing. Though lacking in visual appeal, its recyclability and functional strength make it ideal for industrial and agricultural use. India’s rising environmental consciousness supports increased use of this grade across non-retail applications.

Apart from this, the other category includes specialty grades like folding boxboard, kraft paper, and liquid packaging board. These are used in niche or high-performance applications such as liquid cartons, takeaway containers, and durable goods packaging. Innovations and growing customization needs are expanding the demand for these specialized paper grades in India.

Analysis by Packaging Level:

• Primary Packaging
• Secondary Packaging
• Tertiary Packaging

Primary packaging directly encloses the product and plays a crucial role in preserving quality, especially for food, beverages, and personal care items. In India, sustainable paper-based cartons, pouches, and wraps are increasingly replacing plastic. This level also supports branding, consumer appeal, and regulatory labeling, driving demand in consumer-centric sectors.

Moreover, the secondary packaging groups primary packages for easier handling, storage, and display. Common examples include paperboard boxes and corrugated cartons used in retail and logistics. It provides both protection and marketing visibility. In India, growth in e-commerce and organized retail is fueling demand for durable, attractive, and eco-friendly secondary packaging solutions.

Furthermore, the tertiary packaging ensures safe bulk transport and distribution of goods, mainly through corrugated fiberboard boxes, pallets, and stretch wraps. In India, increased manufacturing and interstate logistics activities are driving this segment. Efficiency, strength, and recyclability of paper-based tertiary packaging are critical for industrial applications and supply chain optimization.

Analysis by End Use Industry:

• Food
• Beverages
• Personal Care and Home Care
• Healthcare
• Others

According to the India paper packaging market forecast, the beverages dominate the growth of the Indian paper packaging market, driven by rising health awareness, urbanization, and increased consumption of packaged drinks such as fruit juices, dairy products, energy drinks, and ready-to-drink (RTD) beverages. Consumers are shifting toward convenient, on-the-go packaging formats that offer safety, hygiene, and ease of use. Paper-based cartons, particularly for liquids, are increasingly preferred over plastic and glass due to their lightweight, eco-friendly, and recyclable nature. The expansion of organized retail and e-commerce further supports distribution and accessibility. In addition, brands are investing in eye-catching, sustainable packaging to appeal to environmentally conscious and young consumers. The combination of rising demand, environmental regulations, and innovation in liquid paperboard technology continues to solidify beverages as the key driver of market growth.

Breakup by Region:

• North India
• West and Central India
• South India
• East India

North India holds a significant share due to strong industrial and agricultural presence, especially in states like Delhi, Punjab, and Haryana. Demand is driven by FMCG, food processing, and pharmaceutical sectors. Growing urbanization and retail expansion further contribute to rising adoption of paper-based sustainable packaging solutions.

Additionally, the West and Central India region is a major hub for manufacturing and export activities, particularly in Maharashtra and Gujarat. With the presence of key industries such as food, beverages, and textiles, demand for paper packaging remains strong. Economic development and rising consumer awareness about eco-friendly packaging also support market growth.

Also, the South India shows robust growth due to thriving IT hubs, food processing industries, and increasing e-commerce penetration. States like Tamil Nadu and Karnataka lead in packaging innovation and sustainable practices. The region also benefits from a well-established paper manufacturing base and supportive infrastructure for logistics and distribution.

Besides this, the East India is an emerging market with growing demand from agriculture, tea, and food packaging sectors. While still developing compared to other regions, increasing government focus on industrial development and rural market expansion is creating new opportunities. The region’s proximity to raw materials also supports localized paper production and supply.

Competitive Landscape:

The India paper packaging industry's competitive scene is characterized by cutthroat competition among scores of players who vary from large-scale producers to small and medium-sized businesses. Firms compete on dimensions like product quality, eco-friendliness, innovation, and price. As demand for environmentally friendly packaging rises, firms are investing in high-tech capabilities and R&D to create high-performance and customizable paper offerings. The industry is also experiencing consolidation as companies extend their capacity or broaden product lines to capture a higher market share. Local players are becoming powerful competitors by responding to local demand and providing cheaper alternatives. Generally, the industry is volatile and quickly changing, driven by innovation, regulatory reforms, and changing consumer attitudes toward eco-friendly packaging.

The report provides a comprehensive analysis of the competitive landscape in the India paper packaging market with detailed profiles of all major companies, including:

Latest News and Developments:

• March 2025: ITC announced the strategic acquisition of the Pulp and Paper Undertaking (CPP) of Aditya Birla Real Estate Limited (ABREL) for INR 3,498 crore. This acquisition aligns with ITC's strategy to expand its paperboards & specialty papers business, enhancing scale, operational resilience, and access to key raw materials.
• March 2025: Oji India Packaging Pvt. Ltd., a subsidiary of Japan’s Oji Holdings Corporation, inaugurated a corrugated packaging plant in Sri City, Andhra Pradesh. Spanning 43,000 sq. meters, the state-of-the-art facility boasts an annual production capacity of 100 million m² and specializes in heavy-duty corrugated boxes for sectors like retail, logistics, and food.
• October 2024: ITC Packaging partnered with UK-based Frugalpac to introduce the Frugal Bottle, a sustainable paper packaging solution made from 94% recycled paperboard, to India and South Asia. This innovative bottle is five times lighter than glass and reduces carbon emissions by 84%, aligning with ITC's Sustainability 2.0 goals.
• September 2024: Ayodhya-based Pakka launched a new range of compostable flexible packaging solutions tailored for the FMCG sector, particularly in food and beverages. The lineup includes M1 and M3 (paper-based structures offering superior barrier properties and heat/cold sealability) and NM1, a non-metalized variant ideal for chocolates and confectioneries.
• January 2024: ITC Sunfeast Farmlite introduced 100% paper-based outer packaging for its Digestive Biscuit Family Pack. This initiative aligns with ITC’s Sustainability 2.0 vision, aiming to reduce plastic waste and promote sustainable consumer choices within the biscuit category.

India Paper Packaging Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the India paper packaging market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the India paper packaging market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the India paper packaging industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.