The European pulp and paper industry is rebounding, with both consumption and production rising in the past year. Recycling and packaging demand have driven growth, while exports remain strong. However, energy costs, economic stagnation, and shifting trade policies pose challenges.
Table of Contents
Recovery in Consumption and Production
According to a recent industry report by the European association representing the paper industry, Cepi, after two years of decline, paper and board consumption rose by 7.5 %, while production increased by 5.2 %. However, these increases follow a sharp drop of 13 % in 2023, meaning production levels are still below pre-pandemic figures. On a global scale, paper and board production also showed signs of recovery, with Europe slightly outperforming its competitors.
Recycling and Packaging Demand
Additionally, the use of Paper for Recycling (PfR) increased by 4.1 % in 2024 after also suffering two years of decline. While it remains below its 2021 peak, it is still significantly higher than early 2000s levels, with an overall increase of 5 million tons despite previous downturns in consumption and production.
Packaging played a major role in driving the industry’s recycling performance. The sector now accounts for 63 % of total paper and board production, with a 6.5 % rise in the production of recycled packaging grades since 2023.
Other segments also saw growth, as the demand for tissue paper rebounded with a 5.8 % increase, while graphic paper—including newsprint, printing, and writing paper—expanded for the first time since 2010, rising by 5.2 %.
Energy Costs and Economic Challenges
Despite the previous positive trends, the industry continues to struggle with high energy prices, which remain twice as high as they were before the pandemic. This poses a challenge to the competitiveness of energy-intensive paper grades in the European market.
Economic growth in the European Union also fell behind in comparison with other advanced economies, with manufacturing output across all EU sectors still 10 % lower than in 2021.
Export Growth and Trade Uncertainty
Moreover, exports accounted for 21 % of total paper and board production in 2024, with the sector maintaining a strong trade balance. Notably, shipments to North America rose by 16.8 %.
Outlook for the Industry
While recent data suggests a positive shift for the European pulp and paper sector, long-term growth depends on policy decisions and market conditions. Industry leaders emphasize the need for supportive EU measures, including affordable energy policies, regulatory simplification, and continued progress toward sustainability goals.
