Asia-Pacific pulp & paper market poised to grow at 2.13% CAGR through 2029 – Research and Markets

ASIA-PACIFIC — The Asia-Pacific (APAC) pulp and paper market is projected to grow at a compound annual growth rate (CAGR) of 2.13% between 2024 and 2029, according to report by Market and Research.

This growth is driven by rising demand for sustainable packaging, rapid industrialization, and the expansion of e-commerce across the region.

While the roots of paper production in Asia date back to ancient China around 105 AD, the industry’s large-scale industrial development began in the 20th century.

Nations such as Japan and South Korea were among the first to advance modern papermaking, supported by high literacy rates, economic growth, and strong industrial bases.

Later, China, Indonesia, and India emerged as key players, leveraging technological innovation, large-scale paper mills, and automation to enhance efficiency and output.

Today, China remains the dominant force in the APAC pulp and paper sector, both as the largest producer and consumer.

Government policies promoting capacity optimization and product quality improvement continue to shape the market’s trajectory.

Meanwhile, India and Indonesia are rapidly expanding production to meet both domestic and export demand.

One of the major growth drivers in recent years has been the surge in demand for paper-based packaging, particularly due to the booming e-commerce and logistics sectors.

Increasing awareness of personal hygiene has also spurred growth in tissue paper and sanitary products.

Rising disposable incomes and industrial development across Southeast Asia are further fueling market expansion.

At the same time, environmental sustainability is reshaping the industry. Stricter regulations and growing consumer demand for greener products have led to significant investments in eco-friendly practices, including recycling initiatives and the development of biodegradable and compostable paper products.

Technological innovation is another key factor transforming the sector. The adoption of automation, digital monitoring, and smart manufacturing systems is enabling producers to maximize productivity while minimizing waste.

Additionally, new recycling and de-inking technologies are improving the quality and efficiency of recycled paper.

In line with sustainability goals, the industry is also exploring non-wood raw materials, such as bamboo, bagasse, and agricultural residues, to reduce reliance on traditional wood-based pulps and diversify sources of fiber.

With steady economic growth, sustainability-focused policies, and the rise of digital and e-commerce ecosystems, the Asia-Pacific pulp and paper market is set to remain a critical driver of global industry expansion in the coming decade.