India Kraft Paper Market Price Trends, Growth, Demand, and Research Report

India Kraft Paper Market Size and Share:

The India kraft paper market size was valued at 11.02 Million Tons in 2024. Looking forward, IMARC Group estimates the market to reach 21.31 Million Tons by 2033, exhibiting a CAGR of 7.23% during 2025-2033. West India currently dominates the market. The market is expanding due to rising demand for eco-friendly packaging, government restrictions on plastics, and growth in e-commerce. Improved recyclability, strength, and cost-efficiency are encouraging adoption across FMCG, retail, and industrial applications nationwide.

There is a growing shift toward eco-friendly solutions across various end-use sectors, which is prompting businesses and manufacturers to choose kraft paper as a recyclable and reliable packaging material. The India kraft paper market demand is being driven by increased awareness of the environmental damage caused by plastic use, leading industries such as FMCG, e-commerce, retail, and food services to adopt kraft paper-based alternatives. Government policies, including bans on single-use plastics, are speeding up this transition. Kraft paper's strength, biodegradability, and recyclability make it appealing to both manufacturers and consumers. Its adaptable nature allows it to be used in packaging, wrapping, and industrial applications, adding to its popularity. The rise of online shopping and the associated need for cost-effective, durable packaging further support the ongoing expansion of the market.

Along with this, innovations in paper quality, texture, and printability are enhancing its appeal in aesthetic and commercial uses, particularly in events, gifting, and premium product packaging. For example, in March 2025, Banganga Paper Industries partnered with Living Green Technologies to integrate solar power into its kraft paper production facility in Nashik, marking a significant move toward green manufacturing. This development reduced operational energy costs and minimized carbon emissions, supporting the growing market for environmentally responsible packaging solutions. The initiative not only aligned with India's sustainability goals but also enhanced the company's capacity to supply eco-friendly kraft paper, strengthening its position in the competitive domestic market.

India Kraft Paper Market Trends:

Growing Demand for Sustainable Packaging Solutions

In the Indian kraft paper industry, the shift toward sustainable and high-performance packaging materials is becoming pronounced due to rising demand across electronics, FMCG, and export-oriented sectors. Moreover, with growing concerns to reduce plastic usage and carbon footprint, companies are actively seeking eco-friendly alternatives that do not compromise on strength or quality. Kraft paper, particularly in its premium variants, is becoming a preferred choice. In response, Silverton Pulp and Paper, in collaboration with Worthwell Papers, introduced a White Kraft Liner (WKL) in January 2025. Offering 28–30 BF strength, high brightness, and a refined surface, the WKL enhances printability and durability, which is essential for branded and export packaging. The launch helped reduce India’s dependency on imported packaging materials and supported the domestic paper industry, in line with the Make in India initiative. Besides this, with robust demand and a clear industry shift, WKL positions itself as a key product for packaging electronics, consumer goods, and industrial components.

Focus on Cost-Effective and Efficient Materials

Efficiency and affordability are now central to the India kraft paper segment, as both manufacturers and end-users seek to improve packaging performance while controlling costs. There is a noticeable shift toward low-GSM kraft paper that is both lightweight and durable, helping reduce material consumption and improve logistics, further supporting India kraft paper market growth. In January 2025, Sripathi Paper and Boards launched a new line of low-GSM coated White Kraft Liners in Tamil Nadu to meet this demand. These liners offer high stiffness, enhanced printability, and better bulk, making them suitable for high-speed packaging operations and reliable printing quality. Developed using advanced recycled board technologies such as shoe press systems and blade coating methods, these products cater to the rising need for efficient material use across sectors like electronics, textiles, and consumer goods. As these innovations take hold, Indian kraft paper manufacturers are scaling up both technology and production capabilities, strengthening the nation's role as a competitive source of sustainable, cost-conscious packaging solutions.

Rising Shift Toward Eco Packaging

The growing usage of compostable and sustainable packaging materials owing to the increasing awareness regarding the detrimental impact of plastic and other non-biodegradable variants is primarily propelling the growth of the Indian kraft paper market. Notably, India has emerged as the world's largest plastic polluter, releasing 9.3 million tons of plastic waste annually, as reported by Down to Earth. In addition to this, the elevating use of kraft paper in gift wrapping, events, weddings, etc., due to its colorful creativity, aesthetic appeal, and textured properties, is also fueling the market growth. Apart from this, the expanding utilization of kraft paper in the e-commerce industry for packaging solutions on account of various associated benefits, such as folding resistance, toughness, and high-strength compression performance, is further augmenting the market growth. Moreover, the rising focus of the Indian government authorities on banning the use of plastics is also creating a positive outlook for the kraft paper market across the country. For instance, in June 2022, the Central Pollution Control Board (CPCB), a federal agency under the Ministry of Environment, issued a list of steps to be taken to prohibit the use of specific single-use plastic products. Moreover, the emergence of sustainable packaging solutions is also augmenting the regional market. For instance, the Foreign Direct Investment (FDI) inflows in India's Paper and Pulp industry amounted to USD 1.73 Billion from April 2000 to June 2024, as noted by the India Brand Equity Foundation (IBEF), reflecting investor confidence in the market. Notable ventures, like SIG's establishment of the first aseptic carton packs in Ahmedabad, Gujarat, further highlight the industry's commitment to sustainability and innovation.

India Kraft Paper Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the India kraft paper market, along with forecasts at the regional levels from 2025-2033. The market has been categorized based on product type, packaging, application, and distribution channel.

Analysis by Product Type:

• Unbleached
• Bleached
• Wrapping and Packaging
• Sack Kraft Paper
• Others

In 2024, the unbleached segment led the kraft paper market, holding of 33.7% of the market share, driven by the growing preference for cost-effective and eco-friendly packaging solutions across key industries such as agriculture, construction, and industrial goods. Unbleached kraft paper offers higher strength and durability compared to bleached variants, making it ideal for heavy-duty packaging, sacks, and wrapping materials. Its natural, chemical-free composition appeals to environmentally conscious manufacturers aiming to reduce chemical use and carbon footprint. The segment's performance was further supported by rising demand in rural and semi-urban regions, where price sensitivity and functional durability are top priorities. Additionally, the surge in demand for biodegradable packaging across domestic supply chains reinforced the growth of unbleached kraft paper in the Indian market.

Analysis by Packaging:

• Corrugated Box
• Grocery Bags
• Industrial Bags
• Wraps
• Pouches
• Others

In 2024, the corrugated box segment led the kraft paper market, holding of 55.7% of the market share, driven by the booming e-commerce and logistics sectors in India, where corrugated packaging plays a vital role in protecting goods during storage and transit. Corrugated boxes made from kraft paper are known for their lightweight structure, high compression strength, and recyclability, which cater to the packaging needs of sectors such as FMCG, electronics, apparel, and pharmaceuticals. Businesses increasingly favored kraft-based corrugated boxes to meet both regulatory guidelines and consumer expectations around sustainable packaging. Furthermore, rising exports and the growing importance of cost-effective, protective packaging in last-mile delivery further fueled demand. Investments in corrugation technology and the proliferation of micro-fulfillment centers also supported the segment's dominance in 2024.

Analysis by Application:

• Foods and Beverage
• Pharmaceuticals
• Building and Construction
• Cosmetic and Personal Care
• Others

In 2024, the food and beverage segment dominated the kraft paper market with a 28.7% share, influenced by changing consumer preferences toward environmentally friendly packaging and the demand for safe, non-toxic materials suitable for food contact. Kraft paper became widely used for wrapping, pouches, and takeaway containers, valued for its breathability, grease resistance, and natural aesthetic. Quick-service restaurants, food chains, and organic product brands increasingly turned to kraft-based solutions to comply with plastic ban regulations and reinforce their eco-conscious image. The surge in food deliveries also fueled the need for hygienic, single-use packaging. As per the India kraft paper market forecast, this segment is expected to maintain momentum due to ongoing innovations in food-grade kraft paper, including moisture-resistant and coated options. These developments have improved the paper's performance for both dry and semi-moist food applications, strengthening its position in the food and beverage sector and ensuring continued demand over the coming years.

Analysis by Distribution Channel:

• Offline
• Online

The offline segment of the Indian kraft paper market remained strong, driven by the traditional dominance of wholesale paper markets, dealer networks, and direct sales to manufacturers. Many buyers, especially in industrial and semi-urban areas, prefer in-person inspections for quality assurance, bulk discounts, and long-standing supplier relationships. The physical presence of suppliers allows faster negotiation, immediate delivery, and access to customized orders, which are crucial in sectors like FMCG, agriculture, and textiles. Despite digital adoption, the offline channel continues to thrive due to operational trust, regional reach, and the ability to manage logistics directly, particularly in tier-2 and tier-3 cities.

The online segment gained momentum in the Indian kraft paper market due to the rapid digitalization of procurement, especially among small businesses and startups seeking convenient sourcing options. E-commerce platforms, B2B portals, and digital paper marketplaces enabled real-time price comparison, quicker access to suppliers, and reduced overhead costs. Buyers benefit from transparent transaction records, flexible delivery scheduling, and easier bulk ordering. This channel also supported the growing trend of eco-conscious entrepreneurs and packaging units opting for certified kraft paper with traceable origins. The convenience, speed, and expanding digital payment ecosystem are steadily driving online sales of kraft paper across urban and semi-urban markets.

Regional Analysis:

• North India
• West and Central India
• South India
• East India

In 2024, the West India segment led the kraft paper market, owing to strong industrial infrastructure, robust raw material availability, and the region's leadership in manufacturing and export-oriented packaging solutions. States like Maharashtra and Gujarat serve as key production hubs, housing major kraft paper mills and corrugation units. Proximity to major ports such as Nhava Sheva and Kandla enhances export logistics, encouraging kraft paper adoption in packaging for global shipments. Additionally, rising demand from the FMCG, textile, and pharmaceutical sectors in the western region fueled steady consumption. Government support for industrial development and growing awareness of sustainable packaging among regional manufacturers also contributed to the segment's dominance. Enhanced recycling infrastructure and water-saving technologies adopted by West Indian mills further strengthened their output and market competitiveness in 2024.

Competitive Landscape:

The India kraft paper market outlook is shaped by strong competition between well-established manufacturers and emerging regional players. Both groups are actively investing in capacity expansion and product innovation to strengthen their market presence and meet evolving industry needs. Companies are investing in automation, energy-efficient technologies, and sustainable production practices to meet rising demand for eco-friendly packaging. Strategic partnerships, vertical integration, and regional distribution expansion are also being pursued to strengthen market position. Further, players are offering customized grades, GSM ranges, and printing compatibility to cater to diverse industry needs. The competition is further intensified by evolving regulations on plastic use, prompting continuous innovation and differentiation in kraft paper offerings across India.

Latest News and Developments:

• February 2025: Valmet delivered its first IQ Moisturizer to Sri Andal Paper Mills in Tamil Nadu, India, to optimize the cross-directional moisture profile and enhance reel build quality in specialty kraft paper production. The order was part of Valmet's Q4 2024 intake, with delivery scheduled for Q1 2025.
• January 2025: Jani Sales launched a 60 MT/day tissue paper mill (PM2) in Gujarat, operational from Q3 2024, to serve domestic and international markets. Known for kraft, recycled, and virgin paper grades, the company trades over 3.5 lakh metric tons of wastepaper annually and aims to expand further in India, Southeast Asia, and Africa.
• October 2024: Lintec launched an unbleached, uncolored kraft paper with high water repellency, targeting carrier bags and envelopes in the logistics sector. Featuring a natural pulp color and rated R7 in water repellency, it expanded Lintec's lineup of specialty papers.
• September 2024: Subam Papers Limited launched its IPO, aiming to raise Rs. 93.70 Cr by issuing 61.64 lakh shares on the BSE SME platform. Subam focuses on eco-friendly kraft paper production using renewable energy sources.

India Kraft Paper Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the India kraft paper market from 2019-2033.
• The India kraft paper market research report provides the latest information on the market drivers, challenges, and opportunities in the regional market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the India kraft paper industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.