Chemical wood pulp market in India

Earlier Report Observations

The chemical wood pulp market in India grew from 3.6 million metric tons in 2018 to 4.4 million metric tons by 2023. This expansion was supported by rising demand and significant investments from major producers like JK Paper, which commissioned new hardwood bleach chemical thermo-mechanical pulp plants. To meet this growing consumption, the industry increasingly relied on imported wood chips and logs due to persistent shortages in domestic pulpwood plantations and limited forest resources.

After a dip to 3.5 million metric tons in 2020, market volume recovered strongly, surpassing 3.8 million metric tons in 2021. The sector's modernization and digitalization efforts, which drastically cut water usage per ton of paper, improved overall efficiency. Concurrently, the government introduced agroforestry policies offering financial support to establish pulpwood plantations on degraded land, aiming to secure a more stable raw material supply for mills.

Stringent environmental regulations, classifying the industry in the 'red' category for pollution potential, drove continuous adoption of sustainable practices. Initiatives such as the Charter for Water Recycling & Pollution Prevention in the Ganga basin states and green chemistry programs promoted better chemical recovery and reduced the sector's resource intensity throughout the period.

Production chemical wood pulp in India

In kind, 2017-2020, K t

From 2017 to 2020, India ranked 13th globally in chemical wood pulp production.

Top producers of chemical wood pulp, 2017-2020

World map of production of chemical wood pulp, 2017-2020

In 2020, India produced 2 435 K t of chemical wood pulp, showing minimal change from the previous year. The largest decline occurred in 2018 at 0.0%, while the largest increase was also recorded in 2018 at 0.0%.

Annual dynamics of production in India in kind, 2017-2020, K t

Exports chemical wood pulp from India

Exports in kind, K t

India's chemical wood pulp exports totaled 1 K t in 2020, marking a 68.3% year-on-year decrease. Over the 2017-2020 period, exports fell by 60.7%, with a compound annual growth rate of -26.8%. The peak export volume was in 2019 at 2 K t, which also saw the largest increase of 38.3%.

Annual dynamics of product's exports from India in kind, 2017-2020, K t

Between 2017 and 2020, nearly all of India's chemical wood pulp exports in volume terms went to the United Arab Emirates, accounting for 95.3% of total flows.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from India in kind, 2017-2020

Exports in value, M $ US

The market exhibited volatility during the observed period. The highest export value was in 2019, while the lowest was in 2020, with a peak-to-trough ratio of 4.8 times. In 2020, India's chemical wood pulp export value amounted to 0.3 M $ US, reflecting a sharp 79.1% decline from the previous year. The maximum value was recorded in 2019 at 2 M $ US, which also experienced the largest increase of 31.6%.

Annual dynamics of product's exports from India in value, 2017-2020, M $ US

From 2017 to 2020, virtually all of India's chemical wood pulp exports in value terms were linked to the United Arab Emirates, with its share reaching 96.1% of total flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from India in value, 2017-2020

Imports chemical wood pulp to India

Imports in kind, K t

In 2020, India imported 1 093 K t of chemical wood pulp, a 16.4% decrease compared to 2019. Over the 2017-2020 period, imports declined by 17.3%, with a compound annual growth rate of -6.1%. The largest increase occurred in 2019 at 9.4%.

Annual dynamics of product's imports to India in kind, 2017-2020, K t

Between 2017 and 2020, India's chemical wood pulp imports in volume terms were widely distributed among partner countries. The United States (17.4% of imports), South Africa (15.2%), and Indonesia (14.3%) together represented 46.9% of total flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to India in kind, 2017-2020

Imports in value, M $ US

India's chemical wood pulp import value declined for the second consecutive year. In 2020, imports totaled 698 M $ US, equivalent to a 32.3% year-on-year decrease. Over the 2017-2020 period, imports fell by 31.5%, with a compound annual growth rate of -11.8%. The maximum value was recorded in 2018 at 1 050 M $ US, which also saw the largest increase of 3.1%.

Annual dynamics of product's imports to India in value, 2017-2020, M $ US

Throughout 2017-2020, the United States (18.5% of imports in value terms), South Africa (16.6%), and Canada (14.9%) played leading roles in India's chemical wood pulp imports, jointly accounting for 50.0% of total flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to India in value, 2017-2020