# Paper and packaging: Value chain, from upstream to the customer

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

Source page: 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 sourcingPlantation and farm-forestry pulpwood growers**3 · Important

Grow fast-rotation eucalyptus, acacia, subabul and pine and sell logs or chips to pulp mills.^[3](https://ipmaindia.org/overview-2/)
**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 Timber](https://www.materialinsights.org/commodities/lumber/)[H₂O Water](https://www.materialinsights.org/commodities/water/)[N Nitrogen (ammonia)](https://www.materialinsights.org/commodities/nitrogen/) Energy [ICV Combustion road vehicles](https://www.materialinsights.org/energy/e_road_ice/) Industries [Wood products](https://www.materialinsights.org/industries/wood_products/)**Examples:** Suzano, Arauco, ITC (social and farm forestry), JK Paper

**Waste-paper collectors and recovered-paper dealers**3 · Important

Collect, sort and bale used cartons, newspapers and office paper and sell graded recovered paper to recycling mills at home and abroad.^[1](https://www.fao.org/newsroom/detail/global-forest-products-trade-and-production-show-signs-of-recovery-in-2024/en)^,^[3](https://ipmaindia.org/overview-2/)
**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](https://www.materialinsights.org/energy/e_road_ice/) Industries [Waste and recycling](https://www.materialinsights.org/industries/waste_recycling/)[Transport and logistics](https://www.materialinsights.org/industries/transport_logistics/)**Examples:** WM (Waste Management), Veolia, Smurfit Westrock Recycling, ITC WOW (Well-being Out of Waste)  Stage 2 **PulpingMarket pulp producers**4 · Critical

Cook wood chips into bleached kraft pulp and sell it to paper, tissue and board mills that lack their own fibre line.^[1](https://www.fao.org/newsroom/detail/global-forest-products-trade-and-production-show-signs-of-recovery-in-2024/en)
**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 Timber](https://www.materialinsights.org/commodities/lumber/)[H₂O Water](https://www.materialinsights.org/commodities/water/)[CaO Lime](https://www.materialinsights.org/commodities/lime/) Chemicals [NaOH Caustic soda](https://www.materialinsights.org/chemicals/caustic_soda/)[Cl2 Chlorine](https://www.materialinsights.org/chemicals/chlorine/)[H2O2 Hydrogen peroxide](https://www.materialinsights.org/chemicals/hydrogen_peroxide/)[H2SO4 Sulphuric acid](https://www.materialinsights.org/chemicals/sulphuric_acid/) Energy [Bag Bagasse and black-liquor cogeneration](https://www.materialinsights.org/energy/e_bio_cogen/)[ST Steam turbines and thermal power plants](https://www.materialinsights.org/energy/e_steam_turbines/) Industries [Wood products](https://www.materialinsights.org/industries/wood_products/)**Examples:** Suzano, UPM, Arauco, CMPC

**Pulp and paper machinery and process-chemical suppliers**3 · Important

Design 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 Steel](https://www.materialinsights.org/commodities/steel/)[Ni Nickel](https://www.materialinsights.org/commodities/nickel/)[Cr Chromium](https://www.materialinsights.org/commodities/chromium/) Chemicals [Str Starch and cellulose derivatives](https://www.materialinsights.org/chemicals/starch_derivatives/)[Adh Adhesives and sealants](https://www.materialinsights.org/chemicals/adhesives/) Industries [Machinery and equipment](https://www.materialinsights.org/industries/machinery/)[Metal products](https://www.materialinsights.org/industries/metal_products/)**Examples:** Valmet, Andritz, Voith, Kemira  Stage 3 **Paper and board makingIntegrated virgin-fibre paper and paperboard mills**3 · Important

Pulp their own wood and make printing paper, folding boxboard and liquid packaging board for converters.^[4](https://www.outlookbusiness.com/economy-and-policy/paper-paperboard-imports-surge-20-in-apr-dec-ipma)
**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 Timber](https://www.materialinsights.org/commodities/lumber/)[Kao Kaolin & clays](https://www.materialinsights.org/commodities/clays/)[H₂O Water](https://www.materialinsights.org/commodities/water/)[CaO Lime](https://www.materialinsights.org/commodities/lime/) Chemicals [TiO2 Titanium dioxide](https://www.materialinsights.org/chemicals/titanium_dioxide/)[Str Starch and cellulose derivatives](https://www.materialinsights.org/chemicals/starch_derivatives/)[NaOH Caustic soda](https://www.materialinsights.org/chemicals/caustic_soda/) Energy [Tc Thermal coal](https://www.materialinsights.org/energy/thermal_coal/)[CHP Combined heat and power](https://www.materialinsights.org/energy/e_chp/)[Bag Bagasse and black-liquor cogeneration](https://www.materialinsights.org/energy/e_bio_cogen/) Industries [Wood products](https://www.materialinsights.org/industries/wood_products/)[Water and sanitation](https://www.materialinsights.org/industries/water_sanitation/)**Examples:** ITC Paperboards, JK Paper, West Coast Paper Mills, International Paper, Stora Enso

**Recycled kraft, containerboard and duplex mills**2 · Supporting

Pulp recovered paper into kraft liner, fluting medium and duplex board for box makers.^[3](https://ipmaindia.org/overview-2/)
**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](https://www.materialinsights.org/commodities/water/) Chemicals [Str Starch and cellulose derivatives](https://www.materialinsights.org/chemicals/starch_derivatives/)[Srf Surfactants](https://www.materialinsights.org/chemicals/surfactants/)[H2O2 Hydrogen peroxide](https://www.materialinsights.org/chemicals/hydrogen_peroxide/) Energy [Tc Thermal coal](https://www.materialinsights.org/energy/thermal_coal/)[CHP Combined heat and power](https://www.materialinsights.org/energy/e_chp/)[CBG Biogas and biomethane](https://www.materialinsights.org/energy/biomethane/) Industries [Waste and recycling](https://www.materialinsights.org/industries/waste_recycling/)**Examples:** Nine Dragons Paper, Smurfit Westrock, Emami Paper Mills, Kuantum Papers  Stage 4 **ConvertingCorrugated box makers**2 · Supporting

Combine 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 derivatives](https://www.materialinsights.org/chemicals/starch_derivatives/)[Pig Organic pigments](https://www.materialinsights.org/chemicals/pigments/) Energy [Blr Boilers, furnaces and stoves](https://www.materialinsights.org/energy/e_combustion_heat/)[Dist Distribution grids, mini-grids and interconnectors](https://www.materialinsights.org/energy/e_distribution/)**Examples:** Smurfit Westrock, International Paper, Mondi, Horizon Packs (JK Paper)

**Folding carton, liquid carton and laminate converters**3 · Important

Print and form folding cartons and aseptic beverage cartons, and laminate board with plastic and foil for food, drink and pharma brands.^[5](https://nordiccreditrating.com/uploads/2026-07/NCR%20-%20Elopak_ASA%20-%20Full%20Rating%20Report%207%20Jul.%202026.pdf)
**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](https://www.materialinsights.org/commodities/aluminum/) Chemicals [LLDPE Polyethylene (LDPE, LLDPE)](https://www.materialinsights.org/chemicals/polyethylene/)[Adh Adhesives and sealants](https://www.materialinsights.org/chemicals/adhesives/)[Pig Organic pigments](https://www.materialinsights.org/chemicals/pigments/)[Pnt Paints and coatings](https://www.materialinsights.org/chemicals/paints_coatings/) Energy [Dist Distribution grids, mini-grids and interconnectors](https://www.materialinsights.org/energy/e_distribution/) Industries [Plastic and rubber products](https://www.materialinsights.org/industries/plastic_rubber/)**Examples:** Tetra Pak, SIG, TCPL Packaging, Huhtamaki India, UFlex  Stage 5 **DistributionPaper merchants and packaging distributors**1 · Commodity service

Stock 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](https://www.materialinsights.org/energy/e_road_ice/) Industries [Transport and logistics](https://www.materialinsights.org/industries/transport_logistics/)[Wholesale and retail trade](https://www.materialinsights.org/industries/wholesale_retail/)**Examples:** Antalis, Veritiv, Inapa

## 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)
- [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)