# Paper and packaging Stratum 1 · First transformations Source page: https://www.materialinsights.org/industries/paper_packaging/ Stratum 1 · First transformations ## Paper and packaging Turns wood, agricultural residues and recovered paper into pulp, paper and paperboard, then converts it into boxes, cartons, sacks and tissue. The world made about 423 million tonnes of paper and paperboard in 2024, up 4%, with China producing 33% and the US 15% (FAO). Wood pulp output reached 189 million tonnes and pulp trade a record 73 million tonnes, with new supply coming mainly from China, Brazil, Chile and Uruguay (FAO).^[2](https://www.fao.org/forestry/statistics/data/en) **India.** India makes about 5% of the world's paper but uses only about 16 kg per person against a world average of 57 kg, and every extra kilogram per head adds about 1 million tonnes of demand (IPMA). About three quarters (74-76%) of Indian output is made from recycled fibre, and imports rose 20% to 1.76 million tonnes in April-December 2024 (IPMA). Depends on 1 of 35 industries · 1 directly Relied on by 12 industries, directly or indirectly Enterprise types 9 in 5 stages Chokepoints 0 rated 5 of 5 Size about 423 million tonnes of paper and paperboard 2024 ## [Where ₹100 of paper and packaging output goes](https://www.materialinsights.org/industries/paper_packaging/cost-mix/) Where ₹100 of paper and packaging output goes Every rupee of sales is paid out to someone along the chain. This splits ₹100 of output by who finally receives it, so you can see how exposed the industry is to commodity, chemical and energy prices. Commodities ₹14.5 Chemicals ₹2.3 Energy ₹14.5 Wages… ## [Price links with supplier industries](https://www.materialinsights.org/industries/paper_packaging/price-links/) Price links with supplier industries How the industries this one buys from shape its prices: the share of its costs they make up, and how their prices have moved together. Tap a row for the charts. Hover or tap ? for what each measure means. Supplier industry Cost share Raw-material mix… ## [Follow one offering through the chain](https://www.materialinsights.org/industries/paper_packaging/story/) Follow one offering through the chain 1 Example story · 6 steps · India A folding carton from Bhadrachalam board Follow a printed carton from a farmer's eucalyptus plot in Telangana to a packed shop shelf. 1 / 6 · Fibre sourcing Eucalyptus grown on farmers' fields 65,000 ha ITC plantation… ## [Buys directly from](https://www.materialinsights.org/industries/paper_packaging/linked-industries/) Buys directly from Wood products Sells directly into Food and beverage processing Pharmaceuticals Household and personal care Wholesale and retail trade Transport and logistics Media and entertainment E-commerce and digital marketplaces ## [Value chain, from upstream to the customer](https://www.materialinsights.org/industries/paper_packaging/value-chain/) Value chain, from upstream to the customer Criticality to the chain: 5 · Chokepoint 4 · Critical 3 · Important 2 · Supporting 1 · Commodity service Stage 1 Fibre sourcing Plantation and farm-forestry pulpwood growers 3 · Important Grow fast-rotation eucalyptus, acacia, subabul and pine and sell… ## [What the whole chain draws on](https://www.materialinsights.org/industries/paper_packaging/materials/) What the whole chain draws on Every commodity, chemical and energy tile named by the enterprises above; ×n shows how many of them depend on it. Open any tile for its full detail. Commodities (9) H₂O Water ×4 Tm Timber ×3 CaO Lime ×2 N Nitrogen (ammonia) St Steel Ni Nickel Cr Chromium Kao Kaolin &… ## [Chokepoints and risks](https://www.materialinsights.org/industries/paper_packaging/risks/) Chokepoints and risks New pulp capacity is concentrated in China, Brazil, Chile and Uruguay, so prices and supply depend on a few large mills 1 . India's mills rely on recycled fibre for about three quarters of output, leaving them exposed to scrap prices and import rules 3 . Imports of paper and… ## [Sources](https://www.materialinsights.org/industries/paper_packaging/sources/) Sources Global forest products trade and production show signs of recovery in 2024 FAO, 2025 Forest product data (FAOSTAT forestry, 2024 production) FAO, 2025 Indian paper industry: overview Indian Paper Manufacturers Association, 2025 Paper and paperboard imports surge 20% in Apr-Dec: IPMA… ## Relationship cards - [Waste and recycling](https://www.materialinsights.org/links/paper-and-packaging-and-waste-and-recycling/): Used cartons and paper collected by the waste trade are the main fibre for Indian paper mills, which make about three quarters of their output from recycled fibre. Because only about 57% of used paper is recovered at home, mills also import millions of tonnes of waste paper a year, so domestic collection and foreign export rules both shape mill costs. *(researched)* - [Wood products](https://www.materialinsights.org/links/paper-and-packaging-and-wood-products/): Indian paper mills and plywood and MDF makers draw on the same farm-grown eucalyptus and other plantation wood, so they compete for logs as well as trading with each other. A plantation gap after the 2020 to 2021 lockdowns nearly doubled wood prices, and wood is now about half of an integrated mill's production cost. *(researched)* - [Plastic and rubber products](https://www.materialinsights.org/links/paper-and-packaging-and-plastic-and-rubber-products/): Paper and plastic compete for the same packaging jobs and are also combined in laminates and cartons; India's 2022 ban on many single-use plastic items pushed brand owners towards paper, and prices of the two industries move closely together. *(researched)* - [Caustic soda](https://www.materialinsights.org/links/caustic-soda-and-paper-and-packaging/): Caustic soda is one of the two active chemicals in kraft pulping liquor; mills recover most of it but must buy make-up, about 35 kg per tonne of market pulp, so virgin-fibre pulp is a steady caustic buyer whose supply depends on chlorine and PVC demand. In India, where three quarters of paper is made from recycled fibre, paper takes only about 6% of caustic demand. *(researched)* - [Transport and logistics](https://www.materialinsights.org/links/paper-and-packaging-and-transport-and-logistics/): Paper and packaging buys from Transport and logistics; transport and logistics buys from Paper and packaging; paper and packaging depends on transport and logistics; transport and logistics depends on paper and packaging. - [Wholesale and retail trade](https://www.materialinsights.org/links/paper-and-packaging-and-wholesale-and-retail-trade/): Paper and packaging buys from Wholesale and retail trade; wholesale and retail trade buys from Paper and packaging; paper and packaging depends on wholesale and retail trade; wholesale and retail trade depends on paper and packaging. - [Apparel and footwear](https://www.materialinsights.org/links/apparel-and-footwear-and-paper-and-packaging/): Apparel and footwear buys from Paper and packaging; apparel and footwear depends on paper and packaging. - [Building materials](https://www.materialinsights.org/links/building-materials-and-paper-and-packaging/): Building materials buys from Paper and packaging; building materials depends on paper and packaging. - [Computers and electronics](https://www.materialinsights.org/links/computers-and-electronics-and-paper-and-packaging/): Computers and electronics buys from Paper and packaging; computers and electronics depends on paper and packaging. - [E-commerce and digital marketplaces](https://www.materialinsights.org/links/e-commerce-and-digital-marketplaces-and-paper-and-packaging/): E-commerce and digital marketplaces buys from Paper and packaging; E-commerce and digital marketplaces depends on paper and packaging. - [Education and research](https://www.materialinsights.org/links/education-and-research-and-paper-and-packaging/): Education and research buys from Paper and packaging; education and research depends on paper and packaging. - [Finance: banking, insurance, markets](https://www.materialinsights.org/links/finance-banking-insurance-markets-and-paper-and-packaging/): Finance: banking, insurance, markets buys from Paper and packaging; finance: banking, insurance, markets depends on paper and packaging. - [Food and beverage processing](https://www.materialinsights.org/links/food-and-beverage-processing-and-paper-and-packaging/): Food and beverage processing buys from Paper and packaging; food and beverage processing depends on paper and packaging. - [Furniture](https://www.materialinsights.org/links/furniture-and-paper-and-packaging/): Furniture buys from Paper and packaging; furniture depends on paper and packaging. - [Healthcare services](https://www.materialinsights.org/links/healthcare-services-and-paper-and-packaging/): Healthcare services buys from Paper and packaging; healthcare services depends on paper and packaging. - [Household and personal care](https://www.materialinsights.org/links/household-and-personal-care-and-paper-and-packaging/): Household and personal care buys from Paper and packaging; household and personal care depends on paper and packaging. - [Machinery and equipment](https://www.materialinsights.org/links/machinery-and-equipment-and-paper-and-packaging/): Paper and packaging buys from Machinery and equipment; paper and packaging depends on machinery and equipment. - [Media and entertainment](https://www.materialinsights.org/links/media-and-entertainment-and-paper-and-packaging/): Media and entertainment buys from Paper and packaging; media and entertainment depends on paper and packaging. - [Medical devices](https://www.materialinsights.org/links/medical-devices-and-paper-and-packaging/): Medical devices buys from Paper and packaging; medical devices depends on paper and packaging. - [Metal products](https://www.materialinsights.org/links/metal-products-and-paper-and-packaging/): Paper and packaging buys from Metal products; paper and packaging depends on metal products. - [Pharmaceuticals](https://www.materialinsights.org/links/paper-and-packaging-and-pharmaceuticals/): Pharmaceuticals buys from Paper and packaging; pharmaceuticals depends on paper and packaging. - [Professional services](https://www.materialinsights.org/links/paper-and-packaging-and-professional-services/): Professional services buys from Paper and packaging; professional services depends on paper and packaging. - [Textiles and leather](https://www.materialinsights.org/links/paper-and-packaging-and-textiles-and-leather/): Textiles and leather buys from Paper and packaging; textiles and leather depends on paper and packaging. - [Water and sanitation](https://www.materialinsights.org/links/paper-and-packaging-and-water-and-sanitation/): Paper and packaging buys from Water and sanitation; paper and packaging depends on water and sanitation. - [Adhesives and sealants](https://www.materialinsights.org/links/adhesives-and-sealants-and-paper-and-packaging/): Paper and packaging depends on adhesives and sealants. - [Aluminium](https://www.materialinsights.org/links/aluminium-and-paper-and-packaging/): Paper and packaging depends on aluminium. - [Bagasse and black-liquor cogeneration](https://www.materialinsights.org/links/bagasse-and-black-liquor-cogeneration-and-paper-and-packaging/): Paper and packaging depends on bagasse and black-liquor cogeneration. - [Biogas and biomethane](https://www.materialinsights.org/links/biogas-and-biomethane-and-paper-and-packaging/): Paper and packaging depends on biogas and biomethane. - [Boilers, furnaces and stoves](https://www.materialinsights.org/links/boilers-furnaces-and-stoves-and-paper-and-packaging/): Paper and packaging depends on boilers, furnaces and stoves. - [Chlorine](https://www.materialinsights.org/links/chlorine-and-paper-and-packaging/): Paper and packaging depends on chlorine. - [Chromium](https://www.materialinsights.org/links/chromium-and-paper-and-packaging/): Paper and packaging depends on chromium. - [Combined heat and power](https://www.materialinsights.org/links/combined-heat-and-power-and-paper-and-packaging/): Paper and packaging depends on combined heat and power. - [Combustion road vehicles](https://www.materialinsights.org/links/combustion-road-vehicles-and-paper-and-packaging/): Paper and packaging depends on combustion road vehicles. - [Distribution grids, mini-grids and interconnectors](https://www.materialinsights.org/links/distribution-grids-mini-grids-and-interconnectors-and-paper-and-packaging/): Paper and packaging depends on distribution grids, mini-grids and interconnectors. - [Hydrogen peroxide](https://www.materialinsights.org/links/hydrogen-peroxide-and-paper-and-packaging/): Paper and packaging depends on hydrogen peroxide. - [Kaolin & clays](https://www.materialinsights.org/links/kaolin-and-clays-and-paper-and-packaging/): Paper and packaging depends on kaolin & clays. - [Lime](https://www.materialinsights.org/links/lime-and-paper-and-packaging/): Paper and packaging depends on lime. - [Nickel](https://www.materialinsights.org/links/nickel-and-paper-and-packaging/): Paper and packaging depends on nickel. - [Nitrogen (ammonia)](https://www.materialinsights.org/links/nitrogen-ammonia-and-paper-and-packaging/): Paper and packaging depends on nitrogen (ammonia). - [Organic pigments](https://www.materialinsights.org/links/organic-pigments-and-paper-and-packaging/): Paper and packaging depends on organic pigments. - [Paints and coatings](https://www.materialinsights.org/links/paints-and-coatings-and-paper-and-packaging/): Paper and packaging depends on paints and coatings. - [Polyethylene (LDPE, LLDPE)](https://www.materialinsights.org/links/paper-and-packaging-and-polyethylene-ldpe-lldpe/): Paper and packaging depends on polyethylene (LDPE, LLDPE). - [Starch and cellulose derivatives](https://www.materialinsights.org/links/paper-and-packaging-and-starch-and-cellulose-derivatives/): Paper and packaging depends on starch and cellulose derivatives. - [Steam turbines and thermal power plants](https://www.materialinsights.org/links/paper-and-packaging-and-steam-turbines-and-thermal-power-plants/): Paper and packaging depends on steam turbines and thermal power plants. - [Steel](https://www.materialinsights.org/links/paper-and-packaging-and-steel/): Paper and packaging depends on steel. - [Sulphuric acid](https://www.materialinsights.org/links/paper-and-packaging-and-sulphuric-acid/): Paper and packaging depends on sulphuric acid. - [Surfactants](https://www.materialinsights.org/links/paper-and-packaging-and-surfactants/): Paper and packaging depends on surfactants. - [Thermal coal](https://www.materialinsights.org/links/paper-and-packaging-and-thermal-coal/): Paper and packaging depends on thermal coal. - [Timber](https://www.materialinsights.org/links/paper-and-packaging-and-timber/): Paper and packaging depends on timber. - [Titanium dioxide](https://www.materialinsights.org/links/paper-and-packaging-and-titanium-dioxide/): Paper and packaging depends on titanium dioxide. - [Water](https://www.materialinsights.org/links/paper-and-packaging-and-water/): Paper and packaging depends on water. ## Other sections - [Where ₹100 goes](https://www.materialinsights.org/industries/paper_packaging/cost-mix/index.md) - [Price links with suppliers](https://www.materialinsights.org/industries/paper_packaging/price-links/index.md) - [Example story](https://www.materialinsights.org/industries/paper_packaging/story/index.md) - [Linked industries](https://www.materialinsights.org/industries/paper_packaging/linked-industries/index.md) - [Value chain](https://www.materialinsights.org/industries/paper_packaging/value-chain/index.md) - [Materials drawn on](https://www.materialinsights.org/industries/paper_packaging/materials/index.md) - [Chokepoints and risks](https://www.materialinsights.org/industries/paper_packaging/risks/index.md) - [Sources](https://www.materialinsights.org/industries/paper_packaging/sources/index.md)