India and China are likely to dominate the global paper market as both producers and consumers of paper and packaging over the next five years, according to a report by Standard & Poor’s Ratings Services.

“The drag on the paper industry globally from mature markets is likely to be offset by the continued rise in the importance of China, India and other major countries in the Asian region, as both producers and consumers of paper and paper packaging over the next five years,” the report.

Asia, with China and India as leading contributors, would account for more than one half of global paper production and consumption by 2018, Standard & Poor’s credit analyst Tobias Crabtree said in the report.

The report forecast weak demand growth across many paper product categories in North America and Europe in the medium term, due to maturing economies in these regions and difficulty in recovering from their recent economic woes.

These headwinds are being fanned by declining demand for graphic paper as consumers increasingly shift to electronic media, the report said.

                                                                                                        (www.thehindubusinessline.com)