A Slow Drift, New Statistics Report Shows Why Europe’s Paper Industry Needs Attention Now

Cepi’s 2025 Key Statistics Report highlights a European paper industry that is increasingly exposed to a slow and sustained erosion of its industrial base at a time when its contribution to Europe’s circular economy, climate goals and strategic autonomy remains critical.

Paper and board production declined by 1.6% in 2025, reaching 77.4 million tonnes, reflecting a continued correction after the post-pandemic surge rather than a return to stable growth. Market pulp, a strategic but relatively small proportion of the sector’s production, grew by 1.0%. Early signals from 2026 point to continued weakening, with output already down 2.4% in the first quarter compared to the same period in 2025.

While overall demand has only slightly eroded, this masks important structural shifts. Production of packaging grades remained stable, despite a significant contraction for cartonboard (-5.4%) while graphic papers declined sharply (-7.3%). Overall, excluding graphic papers, European production looked relatively stable in 2025, but still 7.0% below the record levels of 2021.This reflects an intensifying global competition which effects are worsened by a difficult geopolitical context.

The industry has been steadily losing production assets over the past three years, while import penetration reached a record 7.7% of EU consumption. Exports still represent more than 20% of production, but the EU trade balance has slightly diminished in 2025. Foreign state support and asymmetric market conditions weigh on European industry’s competitiveness.

This comes despite the pulp and paper producers’ strong sustainability performance. Pulp and paper producers reduced specific CO₂ emissions by 10.2% in 2025, continues to operate the world’s most effective recycling system, and sources an all-time high 92% of its wood and nearly all of its recycled material from Europe, the sector exemplifying Europe’s current ‘independence moment’.

Overall, data from Cepi’s Key Statistics Report 2025 points to a clear policy imperative. Without timely action, Europe risks a gradual loss of industrial capacity in a sector that is essential for fast-moving consumer good markets, logistics, hygiene and the development of bio-based alternatives to fossil-intensive material which would allow Europe to tap into a EUR6.6 trillion global opportunity in emerging bioeconomy markets by 2030.

Download Cepi’s 2025 Key Statistics Report

Cepi calls for a coherent policy response that reinforces trade defence instruments, ensures a predictable and investment-friendly regulatory framework, and strengthens Europe’s circular bio-based value chains. 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.

Jori Ringman, Cepi Director General