New Delhi: India’s top tea producers have been vying for market share in the global market for several years now, but only the year 2012 saw a major breakthrough for India’s tea industry.
The nation saw a surge in interest from global tea companies and the country was able to attract some of the most famous names in the tea industry like the world’s leading tea producer, Green Mountain, and tea-growing giant, Yunnan.
However, the market share was not what it was expecting and the industry has seen a significant decline over the past few years.
That is where the papermaking industry came in, a sector that is slowly but surely regaining its footing and is ready to compete again with the global tea market.
According to the latest data from India’s National Sample Analysis Centre, the country is the top producer of papermaking equipment with over 30% of the global production.
The market is now dominated by the likes of Green Mountain and Yunnan and the market for papermaking in India is now in the midst of a revival after a decade-long decline.
According the latest survey conducted by the National Sample Institute, the production of paper from India in 2017 was 2,531 tonnes, which was up by 13.4% from the previous year.
The demand for paper and the quality of the paper made up the biggest part of the demand for the Indian paper industry, with a total value of Rs 1,922 crore, up 12.5% on the previous fiscal year.
The country also saw a revival in the export of paper, with the value of paper exports increased by 1,726.1% to Rs 3,979.2 crore, while the value exported to the world was Rs 4,879.4 crore, which is the highest since the first year of the current fiscal.
The overall value of the Indian market is expected to grow by 6% this fiscal.
“India’s paper industry is a global success story and has been growing in leaps and bounds.
The Indian paper sector is now the largest globally with a market share of around 70% and the world is expected have a much larger share by 2021,” said V.S. Krishnan, President and Managing Director, Green Tea.
“With the help of global tea brands like Green Mountain or Yunnan, India is poised to become a major player in the world tea market again.
As a major exporter of tea, India’s paper making capacity is already large and growing at a phenomenal pace.”
Krishnan added that while the demand is the biggest driver of growth in the paper sector, the quality is equally important as the industry is looking to invest in new processes and equipment to take on the likes a Yunnan company, Green Valley, or Green Mountain.
The new paper production in India was not just driven by the demand from international companies like Green Valley or Green, the demand also came from domestic markets.
The growth in demand for Indian paper also comes at a time when the country’s tea production is experiencing a significant slowdown.
While demand for tea in India has been increasing at a healthy rate over the last decade, production in the domestic market is at a low level, which makes India the world market for the industry.
As the paper market continues to recover, the paper industry in India will continue to be a strong contender for global tea markets in the future.
In the future, India may also be able to overtake the Chinese market for tea.
India’s tea producing capacity is one of the biggest in the Asia-Pacific region and with a capacity of about 1,600 tonnes per year, the Indian tea industry will be able draw in the majority of the tea market globally.