India, now the world's most populous nation, is capturing the attention of global tissue manufacturers eager to identify the next major growth market. With advances in technology and increasing capacity, the country has recorded a remarkable compound annual growth rate (CAGR) of 11% since 2007. Despite this progress, India’s tissue consumption per capita remains strikingly low—less than 0.5kg—compared to a global average of 5kg, presenting not just challenges but untapped growth opportunities.
A Quick Overview of India’s Tissue Market
the Indian tissue industry has demonstrated impressive growth, boasting a compound annual growth rate of 11.8% from 2007 to 2024. Despite this positive trend, the growth rate is not accelerating, indicating some challenges.
An interesting aspect of India's tissue production is its heavy reliance on recovered fiber. This reliance on recycled materials is also common throughout the rest of the country's paper production industry. The FSC has recognized and acknowledged India’s recycling of waste raw materials.
To obtain FSC recycling certification, an organization must demonstrate that over 70% of its waste raw materials are recycled. Notably, the Indian paper industry exclusively sources raw materials from non-forest trees, preserving natural forests. Approximately 1.8 lakh hectares of plantations in India are certified by the FSC.
Market dynamics are also largely influenced by the country's population growth, GDP per capita, inflation rates, and unemployment experiences. It's important to note that India imports more tissue than it exports. Interestingly, these imports have been increasing, especially during periods of anticipated pandemic disruptions.
Looking at the broader picture, India's tissue production capacity has been expanding in response to this rising demand. There is potential for rapid growth in tissue consumption in the country. However, progress may be slowed by structural issues tied to hygiene facilities, cultural differences, and consumer habits.
Like any market, the Indian tissue industry is marked by both opportunities and challenges. Fluctuations in fiber prices, exchange rates, environmental regulations, along with changes in ownership and consolidations at tissue mills, are all factors to bear in mind. To effectively analyze the market, one must understand the competitive landscape and the capabilities of individual machines.
Want to Learn More?
This is just the beginning. To dig deeper into India’s tissue market trends, opportunities, and challenges, download our exclusive report, "A Closer Look at India's Tissue Market: Growth Lags Global Average." The report provides insights on:
Comparative tissue consumption across key global markets
India’s production capacity, technological advancement, and machine quality
Analysis on import/export dynamics and cost efficiency
The long-term challenges and opportunities in India’s tissue industry
This comprehensive report is an essential resource for industry professionals, investors, and decision-makers interested in India’s rising role in the global tissue landscape.
Bruce Janda
Trip Jobe: Jan 10, '25
