Europe’s pulp and paper industry is strengthening its environmental performance, but its industrial competitiveness continues to weaken as production declines, imports reach record levels and investment increasingly shifts outside the European Union.

Those are the key findings from Cepi’s 2025 Key Statistics Report, which warns that Europe risks a gradual erosion of one of its strategic manufacturing sectors despite leading the world in paper recycling and low-carbon production.

Production Continues to Decline

European paper and board production fell 1.6% in 2025 to 77.4 million tonnes, extending the market correction that followed the post-pandemic recovery.

Although market pulp production increased by 1.0%, early indicators suggest the downturn is continuing. During the first quarter of 2026, paper and board production was already 2.4% lower than the same period a year earlier.

The report indicates that while overall demand has softened only slightly, significant differences exist across product categories.

Packaging More Resilient Than Graphic Papers

Packaging grades remained comparatively stable during 2025, although cartonboard production declined 5.4%.

Graphic papers continued to experience the sharpest contraction, with production falling 7.3% as digitalisation and changing media consumption continued to reduce demand.

Excluding graphic papers, overall European production remained relatively stable but was still approximately 7% below the record production levels achieved in 2021, reflecting growing international competition and challenging geopolitical conditions.

Imports Reach Historic High

Cepi also highlights increasing pressure from global competitors.

Import penetration climbed to a record 7.7% of total EU paper consumption, while Europe’s trade surplus narrowed despite exports continuing to account for more than 20% of total production.

According to the report, foreign state support, unequal competitive conditions and sustained capacity growth outside Europe are placing increasing pressure on European manufacturers.

The association notes that several mills have reduced capacity or ceased production over the past three years, raising concerns about the long-term resilience of Europe’s paper industry.

Sustainability Performance Continues to Improve

Despite weaker market conditions, the industry continued to improve its environmental performance.

According to Cepi, European pulp and paper producers:

• Reduced specific CO₂ emissions by 10.2% in 2025
• Sourced 92% of wood raw materials from European forests
• Obtained nearly all recovered fibre from within Europe
• Continued operating what Cepi describes as the world’s most advanced paper recycling system

These achievements reinforce the sector’s role in supporting Europe’s circular economy and reducing dependence on imported raw materials.

Cepi Calls for Stronger Industrial Policy

Cepi argues that stronger policy support is needed to prevent further loss of industrial capacity in a sector that supplies packaging, hygiene products, logistics and bio-based materials.

The organisation is calling for:

• Stronger trade defence measures
• A predictable and investment-friendly regulatory framework
• Greater support for Europe’s circular bio-based value chains

According to Cepi Director General Jori Ringman, Europe must act before the industry’s gradual decline becomes irreversible.

“A slow drift may be less visible than a sudden shock, but its long-term consequences for Europe’s industrial resilience, climate leadership, and strategic autonomy are no less significant.”

The report also notes that the global bioeconomy could represent a €6.6 trillion market by 2030, making the competitiveness of Europe’s forest-based industries increasingly important for future economic growth and the transition toward bio-based alternatives to fossil-intensive materials.

Last Updated on 08/07/2026 by Jota Machinery