Market Report

New 2025 Pulp & Paper Manufacturing Figures Show Moderate Resilience Amid Rising Costs and Intensifying Global Competition

paperasia

Preliminary 2025 statistics released by Confederation of European Paper Industries (Cepi) indicate that European paper and board production declined by 1.5% compared to 2024. This contraction mirrors a broader global slowdown, with most major producing countries also reporting lower output.

Despite mounting challenges, Europe’s pulp and paper sector continues to demonstrate resilience, supported by its global leadership in bio-based and circular materials.

Continued Pressure Across European Manufacturing
The 1.5% decrease extends a negative trend that has persisted since 2021. Over the past five years, European manufacturing has faced significant headwinds, including subdued demand, persistently high energy and production costs relative to international competitors, growing regulatory obligations, geopolitical instability and rising trade tensions.

Segment Performance: Mixed but Stabilising
Graphic paper remained the most vulnerable segment in 2025, with production falling by 7.2%.

By contrast, other key segments showed relative stability:

  • Packaging paper and board: +0.1%
  • Tissue paper: -0.8%
  • Other paper and board: +0.4%

While these figures point to stabilisation, overall production remains 6.8% below the record levels reached in 2021.

Europe Compared with Global Competitors
Globally, paper and board production remained broadly flat (-0.3%). However, most major producing countries recorded steeper declines than Europe. The United States, Japan, Canada and South Korea reported production decreases ranging from -1.9% to -5.7%. Notable exceptions include Brazil (+0.1%), a key pulp exporter to Europe, and China (+2.9%), which has significantly expanded its paper and board production since 2020.

Trade Balance Remains Positive but Under Pressure
Although still firmly positive — a rare position among Europe’s energy-intensive industries — the Cepi area’s paper and board trade balance weakened in 2025. It declined by 4.4% compared to 2024. Based on the latest 11-month data from Eurostat, EU paper and board exports fell by an estimated 2.2%, while imports rose by approximately 1.4%, underlining the fragility of Europe’s global competitiveness.

Europe Leads in Circularity and Biomaterials
Recent findings from Deloitte highlight Europe’s leadership in key competitiveness indicators, particularly biomass flows directed to biomaterials and circular material use rates — areas strongly driven by the EU’s paper and board sector.

The full Cepi Preliminary Statistics Report 2025 is available for download at https://www.cepi.org/wp-content/uploads/2026/02/FINAL-Cepi-Preliminary-Statistics-2025.pdf

Insufficient demand remains a key constraint on production. There is clear growth potential in replacing fossil-based materials, but this requires a level playing field. Today, fossil-based materials benefit from structural advantages and asymmetric information that influences customer decisions. Bio-based circular materials strengthen supply chain resilience and enhance European competitiveness. These advantages are reflected in the latest Cepi statistics and in other recent analyses, including Deloitte’s Antwerp Declaration Monitoring Report.

Jori Ringman, Director General of Cepi