Non wood fibre pulp market in India

Earlier Report Observations

From 2018 to 2020, India's non-wood fibre pulp market volume remained steady at approximately 3.3 million tonnes, with domestic production constant at 3 million tonnes annually. Underlying this stability, a growing preference for sustainable packaging and fibres emerged, fueled by stricter plastic regulations and rising consumer environmental awareness. The molded pulp packaging segment expanded, and the textile industry increased its adoption of eco-friendly fibres such as Tencel, setting the stage for future market shifts.

A significant expansion occurred in 2021 and 2022, with market volume rising to over 3.5 million tonnes. This growth was primarily driven by a sharp increase in imports, responding to sustained demand for sustainable packaging materials—especially from the e-commerce sector—and regulatory changes that eased access to forest lands for industrial raw material sourcing. Concurrent investments in production capacity by players like Origami and Canpac Trends, alongside persistent domestic shortages of forest-based fibre, made higher imports essential to meet consumption needs.

In 2023, the market volume stabilized at 3.49 million tonnes, reflecting a minor adjustment. Continued strong demand from the textile industry for regenerated and sustainable fibres, along with unwavering consumer preference for eco-friendly products, provided underlying support. With domestic production unchanged, the market's movement continued to be determined by import levels, which adjusted from the previous peak.

Production non wood fibre pulp in India

In kind, 2017-2020, K t

From 2017 to 2020, India ranked as the world's second-largest producer of non-wood fibre pulp.

Top producers of non wood fibre pulp, 2017-2020

World map of production of non wood fibre pulp, 2017-2020

In 2020, India produced 3 020 K t of non-wood fibre pulp, showing little change from 2019. 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

In value, 2017-2020, M $ US

Following a two-year decline, India's non-wood fibre pulp production volume increased. In 2020, the output was valued at 961 M $ US, up 3.1% year-over-year. Between 2017 and 2020, production decreased by 30.8%, equivalent to an annualized rate of 11.6%. The minimum value was recorded in 2019 at 932 M $ US, with the largest decline of 27.3% also occurring in 2019.

Annual dynamics of production in India in value, 2017-2020, M $ US

Exports non wood fibre pulp from India

Exports in kind, K t

Non-wood fibre pulp deliveries from India increased for the third consecutive year. In 2020, exports reached 29.0 K t, marking a sharp uptick of 37.9% compared to the previous year. Over the period 2017-2020, exports grew by 2840.3%, with a compound annual growth rate (CAGR) of 208.6%.

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

From 2017 to 2020, India's export structure in kind was heavily concentrated on China, which accounted for 82.8% of total flows, with other partners making up the remainder.

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

Non-wood fibre pulp exports from India increased for the third consecutive year. In 2020, exports amounted to 9.2 M $ US, indicating a sharp increase of 42.2% year-over-year. Over the period 2017-2020, exports rose by 1934.6%, with a compound annual growth rate (CAGR) of 173.0%.

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

Throughout 2017–2020, the partner structure for exports in value terms was centred on China, whose share reached 76.6% of total flows, while other markets contributed a smaller portion.

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

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

Imports non wood fibre pulp to India

Imports in kind, K t

After a two-year increase, India's non-wood fibre pulp import volume declined. In 2020, India imported 306.8 K t, reflecting a slight decline of 2.8% year-over-year. Between 2017 and 2020, imports increased by 28.4%, equating to an annualized rate of 8.7%. The maximum value was recorded in 2019 at 306.8 K t, with the largest increase of 24.8% occurring in 2018.

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

From 2017 to 2020, Canada (33.1% of imports in kind), New Zealand (19.2% of imports in kind), and Sweden (14.4% of imports in kind) formed the core group of markets for imports in kind, together representing 66.8% 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 non-wood fibre pulp import volume declined for the second consecutive year. In 2020, imports amounted to 147.2 M $ US, down 14.7% compared to 2019. Between 2017 and 2020, imports increased by 11.1%, equating to an annualized rate of 3.6%. The maximum value was recorded in 2018 at 194.8 M $ US, with the largest increase of 47.0% also in 2018.

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

Over 2017–2020, Canada (32.8% of imports in value terms), New Zealand (17.5% of imports in value terms), and Sweden (13.5% of imports in value terms) remained the leading destinations in the country structure of imports in value terms, with a combined share of 63.8% 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