Europe Paper Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 4.30 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Europe Paper Market Analysis
The European paper market is expected to grow at a CAGR of 4.3% over the forecast period. The increasing demand from e-commerce applications provided a boost for the paper market in Europe as consumers turned to online shopping during the lockdown.
- The sharp rise in the demand for the hygiene market segment has primarily supported the market growth, which is further expected to continue with elevated hygiene requirements as health and hygiene products demand remain the priority for consumers, government, and companies.
- Furthermore, the packaging paper and carton board registered significant growth in 2021 owing to the demand for different applications. According to the Confederation of Paper Industries (CEPI), the packaging paper and board production by CEPI members increased from 49,831 thousand metric tons in 2020 to 53,545 thousand metric tons in 2021.
- Decreasing consumption of graphic papers due to digitalization in Europe negatively impacts the paper market growth in Europe. Further, the demand for domestic wood supply by the end-users is rising continuously. The increasing utilization of wood sustainably and innovatively is creating a shortage of raw materials required for paper and restraining market growth. In addition, high energy and rising raw material prices further negativly impacting the market growth.
- The demand for carton boards increased as a result of the COVID-19 pandemic, with particular spikes in demand for the production of packaging for dry foods, confectionery, frozen food, and pharmaceuticals. Another significant pandemic-related impact on European paper markets has been the trend in the hygiene paper business. Further, the pandemic accelerated e-commerce, which has given a boost to the paper market.
- In addition to the COVID-19 pandemic, the outbreak of the Russia-Ukraine war also has major implications for Europe's paper industry. While soaring energy prices will also be of concern for the energy-intensive paper industry, with several countries in Europe heavily dependent on Russian natural gas.
Europe Paper Market Trends
This section covers the major market trends shaping the Europe Paper Market according to our research experts:
Case Materials Type is Expected to Hold Major Share
- Corrugated case material (CCM), known as containerboard, is a type of paperboard specifically designed for the production of corrugated boards made up of two types of paper: liner board and corrugating medium (or fluting). It is largely used for corrugated packaging products.
- The Confederation of Paper Industries (CEPI) statistics show that the production of case materials in Europe increased by 8.3% in 2021 compared to 2020, owing to the rising demand from end-user industries preferring eco-friendly packaging solutions to promote sustainability.
- Another factor contributing to the rise in containerboard demand is the growing online shopping, which has emerged as a structural consumer change accelerated by the pandemic. As a result, containerboard demand significantly increased, with e-commerce accounting for the majority of the gains creating the need for case materials.
- As corrugated board packaging keeps moisture away from the products and withstands long shipping times, it is increasingly being adopted by companies to offer customers better outcomes, especially as means of secondary or tertiary packaging. Processed foods, such as bread, meat products, and other perishable items, need these packaging materials to be used at once, thereby driving the demand.
Germany Holds Largest Share in the Market
- Germany is one of the major markets of paper in Europe, with a large number of major paper manufacturers and processors settled in the state. According to the Federal Office of Statistics, in 2021, 34% of packaging industry revenue in Germany was generated by paper packaging.
- Although graphic paper consumption in Germany has decreased in recent years, the demand from the packaging industry has increased significantly for various end-user industries applications. In the meantime, the rapid development of the online commerce market also contributed to the growth of paper consumption in the country.
- The increasing adoption of sustainable packaging solutions and increased regulations related to packaging materials in the country created a need for paper from the packaging industry. Thus, vendors in the market are introducing paper-based packaging solutions. For instance, in February 2022, Amcor PLC, a leading packaging manufacturer, launched paper-based packaging for snacks and confectionery, and many FMCG brands in the country tested Amcor's LifeSpan's material. Such innovations from the packaging manufacturer will further encourage other vendors to innovate paper-based packaging, which would bolster the demand for paper.
- Several paper manufacturers in Germany are expanding their production capacities to offer paper as a sustainable alternative solution for the packaging industry. For instance, in February 2022, Sappi, one of the leading providers of paper-based solutions, announced that it is further expanding its capabilities to produce recyclable high-barrier papers by deploying a cutting-edge coating machine into operation at its specialized paper mill in Alfeld.
Europe Paper Industry Overview
The European paper market is fragmented in nature, with the presence of many players operating in the market. Leading market players are constantly adopting various organic and inorganic strategies, such as capacity expansion mergers, partnerships, new product launches, collaborations, and acquisitions to dominate the market. Stora Enso AB, Smurfit Kappa Group PLC, UPM-Kymmene Oyj, Metsa Group, and Mondi PLC are some of the key market players.
In October 2022, Stora Enso decided to invest approximately EUR 1 billion (USD 1.53 billion) in converting the Group's Oulu site in Finland's remaining idle paper machine into a high-volume consumer board production line. The investment contributes to the Group's renewable packaging growth strategy by providing new volume for expanding packaging segments. The production of the converted machine is expected to begin in early 2025.
Europe Paper Market Leaders
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Stora Enso AB
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UPM-Kymmene Oyj
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Metsa Group
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Smurfit Kappa Group PLC
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Mondi PLC
*Disclaimer: Major Players sorted in no particular order
Europe Paper Market News
- October 2022: Mondi PLC, announced the approval of a EUR 400 million (USD 421.57 million) investment in a new paper machine at its flagship Steti mill in the Czech Republic. The investment is a part of the Group's EUR 1 billion (USD 1.53 billion) expansionary capital investment program to accelerate growth in sustainable packaging and will further strengthen the company's leading position in the market. The new machine would produce around 210,000 tonnes of sack kraft paper per annum, supporting Mondi's Paper Bags business.
- September 2022: Sappi Limited accepted the offer to sell its three European graphic mills. The company agreed with AURELIUS Investment Lux One Sàrl regarding the divesture of its Maastricht Mill in the Netherlands, its Stockstadt Mill in Germany, and its Kirkniemi Mill in Finland. The company's decision to sell these mills follows a strategic initiative to reduce its exposure to the graphic paper segment while expanding Sappi's presence in segments including packaging and specialty papers, pulp, and biomaterials.
Europe Paper Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Market Overview
- 4.2 Industrial Value/Supply Chain Analysis
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4.3 Industry Attractiveness - Porter's Five Force Analysis
- 4.3.1 Bargaining Power of Suppliers
- 4.3.2 Bargaining Power of Consumers/Buyers
- 4.3.3 Threat of New Entrants
- 4.3.4 Threat of Substitute Products
- 4.3.5 Intensity of Competitive Rivalry
- 4.4 Assessment of COVID-19 Impact on the Market
- 4.5 Global Overview of Paper Market
5. MARKET DYNAMICS
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5.1 Drivers
- 5.1.1 Growth in Use of Sustainable Packaging
- 5.1.2 Growth in E-Commerce Sales and Rising Demand from Food Service Sector
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5.2 Restraints
- 5.2.1 Increasing Raw Material Prices
6. MARKET SEGMENTATION
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6.1 By Type
- 6.1.1 Graphic Papers
- 6.1.1.1 Newsprint
- 6.1.1.2 Other Graphic Papers
- 6.1.2 Case Materials
- 6.1.3 Sanitary and Household
- 6.1.4 Wrappings
- 6.1.5 Carton Board
- 6.1.6 Other Types (Specialty Paper)
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6.2 By Country
- 6.2.1 Germany
- 6.2.2 France
- 6.2.3 Sweden
- 6.2.4 Italy
- 6.2.5 Spain
- 6.2.6 Rest of Europe (Finland, Poland, and Austria)
7. COMPETITIVE LANDSCAPE
- 7.1 Stora Enso AB
- 7.2 Smurfit Kappa Group PLC
- 7.3 UPM-Kymmene Oyj
- 7.4 Metsa Group
- 7.5 Mondi plc
- 7.6 Grigeo AB
- 7.7 Norske Skog ASA
- 7.8 Lenzing AG
- 7.9 DS Smith plc
- 7.10 Nippon Paper Industries Co. Ltd.
8. INVESTMENT ANALYSIS
9. FUTURE OUTLOOK OF THE MARKET
Europe Paper Industry Segmentation
The study tracks the paper market based on the revenues generated from the sales of different types of papers offered by the vendors for various applications, as listed. The analysis is based on the market insights captured through primary and secondary research. Also, the impact of COVID-19 and the post-pandemic developments have been analyzed for this study. The European paper market is segmented by type (graphic papers, case materials, sanitary and household, wrappings, carton board, and other types (specialty paper)) and country (Germany, France, Sweden, Italy, Spain, and rest of Europe).
The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.
| By Type | Graphic Papers | Newsprint |
| Other Graphic Papers | ||
| By Type | Case Materials | |
| Sanitary and Household | ||
| Wrappings | ||
| Carton Board | ||
| Other Types (Specialty Paper) | ||
| By Country | Germany | |
| France | ||
| Sweden | ||
| Italy | ||
| Spain | ||
| Rest of Europe (Finland, Poland, and Austria) |
Europe Paper Market Research FAQs
What is the current Europe Paper Market size?
The Europe Paper Market is projected to register a CAGR of 4.30% during the forecast period (2024-2029)
Who are the key players in Europe Paper Market?
Stora Enso AB, UPM-Kymmene Oyj, Metsa Group, Smurfit Kappa Group PLC and Mondi PLC are the major companies operating in the Europe Paper Market.
What years does this Europe Paper Market cover?
The report covers the Europe Paper Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Europe Paper Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Europe Paper Industry Report
Statistics for the 2024 Europe Paper market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Europe Paper analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
