# Paper and packaging: Chokepoints and risks

Pulp and paper mills and converters making boxes, cartons, sacks and tissue

Source page: 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](https://www.fao.org/newsroom/detail/global-forest-products-trade-and-production-show-signs-of-recovery-in-2024/en).
- India's mills rely on recycled fibre for about three quarters of output, leaving them exposed to scrap prices and import rules^[3](https://ipmaindia.org/overview-2/).
- Imports of paper and paperboard into India rose 20% to 1.76 million tonnes in April-December 2024, with cheap virgin board from Indonesia and China squeezing domestic margins^[4](https://www.outlookbusiness.com/economy-and-policy/paper-paperboard-imports-surge-20-in-apr-dec-ipma).
- World graphic paper output fell to 84 million tonnes in 2023, its lowest since 1987, stranding older mills unless they convert to packaging^[6](https://openknowledge.fao.org/items/cbe4a089-f789-476c-95a5-5c39d5a4cf74).
- Pulp and board mills need large volumes of water and steam, so drought, effluent limits and coal prices raise costs.

## Other sections

- [Overview](https://www.materialinsights.org/industries/paper_packaging/index.md)
- [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)
- [Sources](https://www.materialinsights.org/industries/paper_packaging/sources/index.md)