Europe’s paper industry continues to deliver significant progress in carbon reduction, recycling and the use of locally sourced raw materials, but mounting import competition and declining production are eroding the region’s industrial competitiveness, according to the Confederation of European Paper Industries (Cepi) Key Statistics Report 2025.

The report warns that Europe is experiencing a gradual but persistent loss of manufacturing capacity despite the industry’s strong contribution to the circular economy and climate objectives.

Paper Production Continues to Decline

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

Market pulp production, which represents a smaller but strategically important segment of the industry, increased by 1.0% during the year.

However, early indicators suggest the slowdown is continuing. Paper and board production declined by another 2.4% during the first quarter of 2026 compared with the same period in 2025.

Cepi says the figures reflect an increasingly difficult operating environment shaped by global competition and geopolitical uncertainty rather than temporary market fluctuations.

Packaging Performs Better Than Graphic Papers

Market performance varied significantly across paper grades.

Packaging papers remained relatively resilient overall, although cartonboard production declined 5.4% during 2025.

Graphic papers continued to experience the sharpest contraction, with production falling 7.3% as digitalization continued to reduce demand for printing and writing papers.

Excluding graphic grades, European paper production remained relatively stable but still stood approximately 7% below the record production levels achieved in 2021, highlighting the broader challenges facing the sector.

Import Competition Reaches Historic High

One of the report’s strongest warnings concerns the rapid increase in import penetration.

Imports accounted for 7.7% of total European Union paper consumption in 2025, representing the highest level on record.

Although exports still account for more than 20% of European paper production, the region’s trade surplus narrowed during the year.

According to Cepi, foreign government support for competing producers and uneven global market conditions continue to weaken the competitiveness of European manufacturers.

The association notes that production assets have steadily declined over the past three years as several mills have reduced capacity or ceased operations.

Sustainability Performance Sets New Benchmarks

The industry’s competitive challenges contrast sharply with its environmental achievements.

Cepi reported that European pulp and paper manufacturers reduced specific carbon dioxide emissions by 10.2% during 2025.

The industry also sourced 92% of its wood raw materials from European forests, the highest proportion ever recorded, while nearly all recovered fibre used in production originated within Europe.

Combined with one of the world’s most efficient paper recycling systems, these achievements reinforce the sector’s strategic role in supporting Europe’s circular bioeconomy and resource independence.

Cepi Calls for Stronger Industrial Policy

Cepi believes policy intervention will be essential to reverse the gradual erosion of Europe’s paper manufacturing base.

The association is calling for:

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

According to Cepi Director General Jori Ringman, the slow decline in industrial competitiveness may be less visible than an economic shock, but its long-term consequences could be equally significant.

Bioeconomy Opportunity at Risk

Cepi argues that maintaining a competitive European paper industry is critical not only for packaging, hygiene products and logistics, but also for the development of bio-based alternatives to fossil-intensive materials.

The association estimates that the global bioeconomy could be worth approximately €6.6 trillion by 2030.

Without stronger policy support, Europe risks losing industrial capacity in a sector that plays a central role in climate transition, strategic autonomy and future economic growth, according to the report.

Last Updated on 07/07/2026 by Jota Machinery