Asia Pacific Paper Packaging - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The Asia Pacific Paper Packaging Market size is estimated at USD 190.55 billion in 2024, and is expected to reach USD 245.48 billion by 2029, growing at a CAGR of 4.98% during the forecast period (2024-2029).

Key Highlights

• India and China are two of the most populous countries in the world, and many end-user industries in these countries offer paper-based packaging. As alternative packaging options become increasingly popular in countries such as China, India, Japan, Hong Kong, and Singapore, Asia-Pacific is expected to experience unprecedented growth in the paper and paperboard market. The Chinese government has taken steps to modernize packaging options to meet the increasing demand, and as a result, China is now leading the regional revenue scale for consumer goods.
• In the next ten years, India will focus on transitioning the industry to a more sustainable and intelligent direction. This shift will be driven by the policy of prohibiting single-use plastic and emphasizing recycling and biodegradation. This provides India with a unique opportunity to shift the industry towards bio-based, paper-based packaging, which will promote sustainability, reduce import costs, and change the focus of domestic ethylene production toward the substitution of imported chemicals and polymers such as methyl ethyl ketone, PVC, and ethylene oxide.
• In recent years, e-commerce has emerged as a prominent player. Amazon and other well-known e-commerce companies have used corrugated board boxes as their primary packaging. Various e-commerce companies have been working on substituting corrugated boxes and paper bags for single-use plastics, which is projected to fuel market expansion.
• Another market driver will be the growing need for paper packaging for food products. The increasing demand for online food ordering in Asia-Pacific countries such as China, Japan, and India has contributed to the growth of the paper packaging market. Because it guarantees the safe arrival of products, paper packaging is a crucial component for online meal and grocery delivery.
• However, even though there is an increase in demand for paper packaging, irresponsible deforestation will severely impact the paperboard packaging industry by causing a loss of raw materials. According to the Union of Concerned Scientists, "wood products," such as paper, account for around 10% of total deforestation.

Asia Pacific Paper Packaging Market Trends

Food Segment to Hold Significant Market Share

• The demand for paper and packaging for food and beverages has increased in India with the advent of new food and beverage companies and the meteoric growth of food delivery service companies like Zomato and Swiggy. This has led to an increase in the consumption of food and beverage packaging. Zomato was one of the first food delivery companies to introduce tamper-resistant packaging to ensure food safety and freshness.
• Food packaging has undergone significant changes that emphasize the brand while preserving the integrity and quality of the food item. There is fierce competition between local manufacturers to create innovative products and compete with MNCs, with an entire research and development department dedicated to testing and eventually deploying the latest technologies.
• The food processing industry in China chooses the packaging material based on the food product requirement, considering factors such as thermal sealability, process capability, printability, and strength; barrier properties such as water, oil, and gas barriers; cost-efficiency, sustainability, and legal requirements.
• Different food packaging materials like paper are used depending on their advantages and disadvantages. Paper makes up a large portion of the packaging market segment in China. It is most commonly used in food packaging to contain and protect food products, provide convenience during storage and consumption, and communicate relevant information to the consumer, including its marketing aspects.
• Japan primarily uses paper-based products in the food delivery industry because of consumer awareness about sustainable packaging; among other factors, there has been a recent movement in the packaging sector to utilize paper. For instance, the market size of the food delivery service of restaurants in Japan grew steadily in the year 2021. It generated USD 5.60 billion in 2021, which grew to USD 6.2 billion in 2023, with the growing market of food delivery in Japan impacting the demand for paper-based packaging throughout the region.

India is Expected to Hold a Significant Market Share

• The paper and paperboard industry in the country is considering this transition phase as a great opportunity coupled with the challenge of providing less costly and affordable alternatives. Paper mills in the region are conducting various trials to make paper and paperboard for the intended use, such as carrying, protecting, wrapping, packaging, and holding them as containers. Furthermore, the demand for paper products in the upstream market, such as tissue paper, tea bags, filter paper, lightweight online coated paper, and medical-grade coated paper, has also been increasing in India over the past few years.
• Due to the restrictions imposed on people's movement and the closure of physical stores during the COVID-19 pandemic, the Indian e-commerce industry saw a considerable increase in online orders. People throughout the country are increasingly buying groceries, meals, and other necessities online and purchasing stuff. As the e-commerce and retail industries are among the country's largest users of paper and paperboard solutions, such trends are projected to increase demand for sustainable packaging solutions.
• Since India's food and beverage, cosmetics, and other industries are rising at a faster rate, this industry is rapidly expanding. Furthermore, several government measures to limit plastic waste are influencing the market's growth. As a result, rising consumer awareness and the rise of India's organized food sector are driving market growth. The export value of paper and paper board products in India for FY 2023 accounted for USD 3,039. 37 million, according to the Department of Commerce (India).
• Moreover, India's paper and paperboard packaging growth is further driven by continued demand for quality packaging of various FMCG products, pharmaceuticals, textiles, organized retail, booming e-commerce, and other segments. Additionally, fruit pulp, juices, and other concentrates, as well as sauces and ketchup bottles, are driving the growing demand for paper and paperboard packaging in India. The industry in India has gone up the sustainability curve and has become far more technologically advanced.
• As per the Indian Paper Manufacturers Association (IPMA), paper consumption in India is likely to witness 6% to 7% annual growth and reach 30 million tonnes by FY 2026-2027, primarily driven by the growing emphasis on education and literacy, coupled with the increase in organized retail, according to industry body IPMA. Furthermore, the paper industry holds immense potential for growth in India as the per capita consumption globally is one of the lowest.

Asia Pacific Paper Packaging Industry Overview

The Asia-Pacific paper packaging market is fragmented, owing to some key players such as SCG Packaging PCL, Huhtamaki Group, Amcor, and International Paper Company. Through continuous research and development activities, players in the market have brought about innovations in their offerings that allow them to provide sustainability to their consumers.

• March 2024: Sustainable packaging solutions provider Huhtamaki announced that it would consolidate its production footprint in the China fiber foodservice Europe-Asia-Oceania segment by the end of the second quarter of 2024. Huhtamaki will close its facilities in Tianjin and Shanghai, China, as part of this consolidation. These facilities will be transferred to a new production facility in Guangzhou.
• October 2023: An MoU with SCG Packaging (SCGP) and SCG Chemicals (SCGC) was signed by Charoen Pokphand Foods Public Company to launch the Green Packaging Initiative. The companies will work together to find an environmental and sustainability solution for food packaging in this context. In particular, a partnership between CP Foods and SCGP will facilitate innovation in paper and plastic packaging.

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