India Kraft Paper Market: Emerging Trends & Future Outlook 2033

IMARC Group's latest research publication "India Kraft Paper Market Size, Share, Trends and Forecast by Product Type, Packaging, Application, Distribution Channel, and Region, 2025-2033" the India kraft paper market size reached 11.02 Million Tons in 2024. The market is expected to reach 21.31 Million Tons by 2033, exhibiting a growth rate (CAGR) of 7.23% during 2025-2033.

This detailed analysis primarily encompasses industry size, business trends, market share, key growth factors, and regional forecasts. The report offers a comprehensive overview and integrates research findings, market assessments, and data from different sources. It also includes pivotal market dynamics like drivers and challenges, while also highlighting growth opportunities, financial insights, technological improvements, emerging trends, and innovations. Besides this, the report provides regional market evaluation, along with a competitive landscape analysis.

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What is Kraft Paper?

Kraft paper is a durable, strong paper made from wood pulp through the kraft process, producing recyclable and biodegradable material. It's widely used in packaging applications from corrugated boxes and grocery bags to industrial wrapping. Brands across FMCG, e-commerce, and food service sectors have embraced kraft paper as a sustainable alternative to plastic, with its natural brown appearance and robust performance making it ideal for everything from Amazon shipping boxes to artisanal gift wrapping.

Key Market Trends and Drivers:

The India kraft paper market is witnessing remarkable growth driven by aggressive government action against single-use plastics, the explosive expansion of e-commerce requiring sustainable packaging, and increasing corporate commitment to environmental responsibility. What's particularly striking is how quickly kraft paper has shifted from niche eco-product to mainstream packaging standard across industries. The transformation isn't happening in isolation-it's being propelled by converging forces that make kraft paper not just environmentally preferable but operationally superior and economically viable compared to plastic alternatives.

The regulatory landscape has fundamentally restructured market dynamics. India banned specific single-use plastic items effective July 2022, and the Central Pollution Control Board issued comprehensive guidelines for prohibiting these products in June 2022. But the policy momentum hasn't stopped there-India is preparing to implement a full ban on single-use plastics by 2025, creating urgent need for scalable alternatives. The numbers tell the story: India generates over 4.5 million tonnes of plastic waste annually, with significant portions coming from packaging. India also holds the unfortunate distinction of being the world's largest plastic polluter, releasing 9.3 million tonnes of plastic waste each year. These aren't abstract statistics-they represent millions of tons of material that must be replaced by viable alternatives, and kraft paper stands positioned as the primary solution.

Government support extends beyond bans into active infrastructure building. The Council of Scientific and Industrial Research (CSIR) launched the National Mission on Sustainable Packaging Solutions in 2024, led by CSIR-NIIST, focusing specifically on developing sustainable materials, recycling methods, and advanced testing facilities to enhance India's packaging sector. This represents government commitment to creating the ecosystem needed for alternatives like kraft paper to succeed at scale. Foreign Direct Investment inflows in India's Paper and Pulp industry reached USD 1.73 Billion from April 2000 to June 2024, demonstrating investor confidence in the sector's trajectory. Cumulative FDI stood at Rs. 10,159.90 crore (USD 1.74 billion) between April 2000 and March 2025, reflecting sustained belief in market potential.

The e-commerce explosion drives enormous packaging demand. India became the world's third-largest packaging market in September 2024, surpassing Japan, with industry size reaching Rs. 7,36,246 crore (USD 86 billion). The packaging industry's growth is underpinned by India's expanding middle class, improved supply chain infrastructure, and rapid e-commerce platform expansion. Online retail generates massive demand for corrugated boxes, protective wrapping, and shipping materials-applications where kraft paper excels. The material's strength-to-weight ratio makes it ideal for shipping, reducing freight costs while protecting contents. Its stackability and compression resistance solve logistics challenges that plastic alternatives often can't match.

Premium and specialty kraft paper products are gaining traction. Innovations in paper quality, texture, and printability enhance kraft paper's appeal in aesthetic and commercial uses, particularly in events, gifting, and premium product packaging. In March 2025, Banganga Paper Industries partnered with Living Green Technologies to integrate solar power into its kraft paper production facility in Nashik-a significant move toward green manufacturing that reduced operational energy costs and minimized carbon emissions. This development didn't just improve sustainability metrics; it enhanced the company's capacity to supply eco-friendly kraft paper, strengthening competitive positioning. Similarly, Silverton Pulp and Paper collaborated with Worthwell Papers to introduce White Kraft Liner (WKL) in January 2025, offering 28-30 BF strength, high brightness, and refined surface that enhances printability and durability-essential attributes for branded and export packaging. The launch directly addressed India's dependency on imported packaging materials, supporting domestic manufacturing under the Make in India initiative.

The cost dynamics are shifting favorably too. Sripathi Paper and Boards launched new low-GSM coated White Kraft Liners in Tamil Nadu in January 2025, targeting efficiency-conscious buyers seeking lightweight yet durable packaging. These liners offer high stiffness, enhanced printability, and better bulk, making them suitable for high-speed packaging operations across electronics, textiles, and consumer goods sectors. Developed using advanced recycled board technologies including shoe press systems and blade coating methods, these innovations demonstrate how Indian manufacturers are scaling up both technology and production capabilities. The focus on low-GSM products reduces material consumption while maintaining performance-a combination that delivers both environmental and economic benefits.
The food service sector represents another massive growth opportunity. Quick-service restaurants, food chains, and organic product brands increasingly turn to kraft-based solutions to comply with plastic ban regulations and reinforce eco-conscious brand positioning. The surge in food deliveries, accelerated by contactless service demands, fueled need for hygienic, single-use packaging where kraft paper excels. India's food processing sector is projected to reach Rs. 47,13,350 crore (USD 535 billion) by FY26, with the organic food market growing to USD 10.80 billion by 2033. Every restaurant meal, grocery delivery, and takeaway container represents potential kraft paper demand.

Corporate sustainability commitments are translating into purchasing decisions. Major companies across sectors are publicly pledging to eliminate plastic packaging or achieve specific recycling targets, creating procurement pressure that favors kraft paper. SIG, a Swiss packaging company, laid the foundation for India's first aseptic carton packs facility in Ahmedabad in 2023, planning to invest Rs. 880 crore (USD 106.02 million) over 2023-2025, with additional USD 50 million committed for Phase 2 by 2027. These aren't tentative investments-they're substantial commitments reflecting confidence in India's sustainable packaging trajectory. JK Paper's December 2024 merger of Horizon Packs, Securipax Packaging, and JKPL Utility Packaging, plus acquisition of Radhesham Wellpack, demonstrates how established players are consolidating to expand corrugated packaging capacity. Oji India Packaging inaugurated its fifth facility in Sri City, Andhra Pradesh, specifically for producing corrugated boxes and packaging accessories, creating 300 jobs while expanding kraft paper product capacity.

The technical capabilities of modern kraft paper continue improving. Innovations include moisture-resistant coatings made from natural, non-toxic materials that maintain biodegradability, stronger paper fibers supporting more durable applications, and specialized treatments for food contact safety meeting FSSAI standards. These developments broaden kraft paper's application range from basic wrapping to sophisticated packaging requiring specific barrier properties, heat resistance, or grease resistance. The recyclability advantage remains powerful. Nearly three-fourths of India's paper production already comes from recovered paper and recycled fiber, creating circular economy infrastructure that plastic can't match. Kraft paper can be recycled multiple times without significant quality degradation, and the recycling process requires less energy and produces fewer emissions than manufacturing virgin paper or plastic. This sustainability profile aligns perfectly with both regulatory requirements and corporate ESG commitments.

Recent News and Developments in India Kraft Paper Market

➤ March 2025: Banganga Paper Industries partnered with Living Green Technologies to integrate solar power into its kraft paper production facility in Nashik, reducing operational energy costs and carbon emissions while strengthening eco-friendly kraft paper supply capacity.

➤ January 2025: Silverton Pulp and Paper, in collaboration with Worthwell Papers, introduced White Kraft Liner (WKL) offering 28-30 BF strength, high brightness, and refined printability for electronics, consumer goods, and export packaging.

➤ January 2025: Sripathi Paper and Boards launched low-GSM coated White Kraft Liners in Tamil Nadu using advanced recycled board technologies, catering to high-speed packaging operations across electronics, textiles, and consumer goods.

➤ December 2024: JK Paper announced merger of Horizon Packs, Securipax Packaging, and JKPL Utility Packaging while acquiring Radhesham Wellpack to expand corrugated packaging capacity.

➤ May 2024: Andhra Paper Ltd. signed Rs. 125 crore (USD 14.4 million) deal with Sweden's Valmet AB for tissue paper production line, following Rs. 270 crore (USD 31.1 million) investment for 100-ton daily capacity machine.

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Leading Companies Operating in the India Kraft Paper Market:
➤ Paswara Papers Limited
➤ Genus Paper & Boards Limited
➤ Vijay Anand Kraft Papers Pvt. Ltd.
➤ Nikita Papers Limited
➤ Shree Ajit Pulp and Paper Limited

India Kraft Paper Industry Segmentation:

Analysis by Product Type:
➤ Unbleached
➤ Bleached
➤ Wrapping and Packaging
➤ Sack Kraft Paper
➤ Others

Analysis by Packaging:
➤ Corrugated Box
➤ Grocery Bags
➤ Industrial Bags
➤ Wraps
➤ Pouches
➤ Others

Analysis by Application:
➤ Foods and Beverage
➤ Pharmaceuticals
➤ Building and Construction
➤ Cosmetic and Personal Care
➤ Others

Analysis by Distribution Channel:
➤ Offline
➤ Online

Regional Analysis:
➤ North India
➤ West and Central India
➤ South India
➤ East India

Research Methodology:

The report employs a comprehensive research methodology, combining primary and secondary data sources to validate findings. It includes market assessments, surveys, expert opinions, and data triangulation techniques to ensure accuracy and reliability.

Note: If you require specific details, data, or insights that are not currently included in the scope of this report, we are happy to accommodate your request. As part of our customization service, we will gather and provide the additional information you need, tailored to your specific requirements. Please let us know your exact needs, and we will ensure the report is updated accordingly to meet your expectations.

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This release was published on openPR.