Paper and Packaging Industry: Between Opportunities, Frustration, and Future Wishes
News News blog
The paper, paper packaging, and pulp industry looks back on a challenging year 2024. While some areas, such as the packaging industry, are booming, other segments, like graphic papers, are struggling with declining demand. At the same time, high costs and increasing regulation are burdening the industry. However, there are also opportunities: The transformation towards more sustainability opens up innovative business fields.
Packaging Industry Remains Growth Engine
The packaging industry is and remains a growth driver for the paper industry. The booming online trade, in particular, is driving the increasing demand for paper packaging such as shipping boxes and filling materials. In 2024, the industry recorded a production increase of 5% to 12.3 million tons in this segment. This market segment also offers good prospects for the future.
Graphic Papers Face Problems
The graphic papers sector, which includes newsprint and papers for magazines, is struggling with declining demand. In 2024, production fell by 1.1% to 4.1 million tons. The trend towards digitalization is putting pressure on this market segment. The industry must reposition itself here and develop innovative products.
Hygiene Papers Stable
In the hygiene papers segment, which includes toilet paper, tissues, and kitchen rolls, production remained almost stable at 1.4 million tons (-0.6%). These daily necessities are less dependent on economic conditions. However, the market is saturated and characterized by fierce price competition. Manufacturers are therefore focusing on product innovations to stand out.
High Costs Weigh on Industry
Overall, the paper industry held its ground well in 2024 with total production of 19.2 million tons (+3%). However, the high costs of energy, logistics, and raw materials are weighing on companies' earnings. Energy prices are still two to three times pre-crisis levels. The industry is hoping for relief from politicians to remain competitive.
Desire for Bureaucracy Reduction
In addition to high costs, the paper industry is suffering from increasing regulatory burdens. Ever new requirements and reporting obligations are driving up the bureaucratic burden. Companies are hoping for a simplification and streamlining of regulations to be able to focus on their core business.
Pulp Industry Faces Sustainability Trends
The pulp industry, as a supplier to the paper and packaging industry, is benefiting from the growth segments. However, the industry is under pressure to make its production more sustainable. Customer demand for greener products requires high investments but also offers opportunities. Innovative companies can position themselves in the market with "green" pulp fibers.
Conclusion: Transformation Towards More Sustainability Offers Great Opportunities for Innovative Companies
The paper, paper packaging, and pulp industry looks back on an ambivalent year 2024. While some areas are booming, others are struggling with declining demand. Political relief in costs and bureaucracy remains the industry's major wish. At the same time, the transformation towards more sustainability offers great opportunities for innovative companies. Those who invest in future-proof technologies and products now can master the challenges and emerge stronger from the upheaval.
