Paper and packaging: Value chain, from upstream to the customer
Pulp and paper mills and converters making boxes, cartons, sacks and tissue
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 sourcingGrow fast-rotation eucalyptus, acacia, subabul and pine and sell logs or chips to pulp mills.3
Why important: In India 97-98% of pulping wood comes from farms rather than forests, many supplying one nearby mill, so a short local crop raises costs for months (IPMA). Technologies Clonal eucalyptus saplings Short-rotation plantation management FSC and PEFC certification Mill-run farm-forestry schemes Depends on Commodities Tm TimberH₂O WaterN Nitrogen (ammonia) Energy ICV Combustion road vehicles Industries Wood productsExamples: Suzano, Arauco, ITC (social and farm forestry), JK PaperCollect, sort and bale used cartons, newspapers and office paper and sell graded recovered paper to recycling mills at home and abroad.1,3
Why important: The world used 243 million tonnes of recovered paper in 2024 and India's mills, which take 74-76% of their fibre from it, rely on a mix of local scrap and imports, so quality swings disrupt output (FAO, IPMA). Technologies Baling and sorting lines Grade specifications (OCC, mixed, deinking) Contaminant screening Import sourcing from the US and Europe Depends on Energy ICV Combustion road vehicles Industries Waste and recyclingTransport and logisticsExamples: WM (Waste Management), Veolia, Smurfit Westrock Recycling, ITC WOW (Well-being Out of Waste)Cook wood chips into bleached kraft pulp and sell it to paper, tissue and board mills that lack their own fibre line.1
Why critical: Wood pulp trade hit a record 73 million tonnes in 2024 and new supply comes mainly from large mills in China, Brazil, Chile and Uruguay, so a few producers set market prices (FAO). Technologies Kraft cooking and oxygen delignification Elemental-chlorine-free bleaching Chemical recovery boilers Black-liquor cogeneration Depends on Commodities Tm TimberH₂O WaterCaO Lime Chemicals NaOH Caustic sodaCl2 ChlorineH2O2 Hydrogen peroxideH2SO4 Sulphuric acid Energy Bag Bagasse and black-liquor cogenerationST Steam turbines and thermal power plants Industries Wood productsExamples: Suzano, UPM, Arauco, CMPCDesign and build fibre lines, paper and board machines and supply the retention, sizing and strength chemicals that run on them.
Why important: Valmet, Andritz and Voith build most large high-speed lines and a new machine takes about two years to deliver and start up, but existing machines keep running and Chinese builders now compete in mid-size lines. Technologies Wide high-speed board machines Shoe presses and steam dryers Quality control systems Wet-end and sizing chemistry Depends on Commodities St SteelNi NickelCr Chromium Chemicals Str Starch and cellulose derivativesAdh Adhesives and sealants Industries Machinery and equipmentMetal productsExamples: Valmet, Andritz, Voith, KemiraPulp their own wood and make printing paper, folding boxboard and liquid packaging board for converters.4
Why important: A few large mills make each premium grade in India, but virgin-fibre board imports from Indonesia, China and the rest of ASEAN, which have more than tripled since 2020-21, can fill gaps within months (IPMA). Technologies Multi-ply board machines Mineral and barrier coating Captive cogeneration Effluent treatment and water recycling Depends on Commodities Tm TimberKao Kaolin & claysH₂O WaterCaO Lime Chemicals TiO2 Titanium dioxideStr Starch and cellulose derivativesNaOH Caustic soda Energy Tc Thermal coalCHP Combined heat and powerBag Bagasse and black-liquor cogeneration Industries Wood productsWater and sanitationExamples: ITC Paperboards, JK Paper, West Coast Paper Mills, International Paper, Stora EnsoPulp recovered paper into kraft liner, fluting medium and duplex board for box makers.3
Why supporting: Hundreds of recycled-fibre mills operate in Gujarat, Uttar Pradesh, Tamil Nadu and China, so box makers can switch within weeks. Technologies OCC pulping and screening Deinking flotation Multi-ply forming Biogas from anaerobic effluent treatment Depends on Commodities H₂O Water Chemicals Str Starch and cellulose derivativesSrf SurfactantsH2O2 Hydrogen peroxide Energy Tc Thermal coalCHP Combined heat and powerCBG Biogas and biomethane Industries Waste and recyclingExamples: Nine Dragons Paper, Smurfit Westrock, Emami Paper Mills, Kuantum PapersCombine liner and fluting into corrugated board and cut, print and glue it into shipping boxes for food, e-commerce and industry.
Why supporting: Empty boxes are bulky and cheap, so box plants sit near customers and many local makers compete, letting buyers switch within weeks. Technologies Corrugators Flexographic printing Rotary and flatbed die cutting Starch-based adhesives Depends on Chemicals Str Starch and cellulose derivativesPig Organic pigments Energy Blr Boilers, furnaces and stovesDist Distribution grids, mini-grids and interconnectorsExamples: Smurfit Westrock, International Paper, Mondi, Horizon Packs (JK Paper)Print and form folding cartons and aseptic beverage cartons, and laminate board with plastic and foil for food, drink and pharma brands.5
Why important: Folding-carton printing is competitive, but aseptic liquid cartons are led by Tetra Pak with a few rivals, and cartons run only on the supplier's own filling machines, which customers keep for about 15 years (NCR). Technologies Offset and gravure printing Polyethylene extrusion coating Aseptic filling systems Anti-counterfeit print Depends on Commodities Al Aluminium Chemicals LLDPE Polyethylene (LDPE, LLDPE)Adh Adhesives and sealantsPig Organic pigmentsPnt Paints and coatings Energy Dist Distribution grids, mini-grids and interconnectors Industries Plastic and rubber productsExamples: Tetra Pak, SIG, TCPL Packaging, Huhtamaki India, UFlexStock paper, board and standard packaging and sell to printers, small brands and offices in small lots.
Why commodity service: Many merchants and online sellers compete and buyers can switch within days. Technologies Warehouse management systems Cut-to-size sheeting Online ordering Mill agency agreements Depends on Energy ICV Combustion road vehicles Industries Transport and logisticsWholesale and retail tradeExamples: Antalis, Veritiv, Inapa