Market Trends of Europe Paper Packaging Industry
The Beverage Segment is Expected to Hold a Significant Market Share
- Beverages such as fruit juices, alcoholic drinks, and meal replacement shakes use paper packaging solutions. The quality of beverages is affected by pH, storage temperature, pressure, and the presence of contaminants. Changes in the levels can alter the composition of the beverage. Companies are increasingly employing biodegradable packaging products with high barrier resistance (heat, moisture, and bacteria) to eliminate possible oxidation. For instance, When in Rome, a United Kingdom-based company, launched a paper wine bottle for Ocado. The bottle was developed in collaboration with sustainable packaging company Frugalpac. It is made from 94% recycled paper and has an 84% lower carbon footprint than a single-use glass bottle.
- The growing trend of using lightweight packaging material and the rising inclination toward reducing production, shipment, and handling costs are driving the flexible paper packaging of beverages. The demand is driven by the rise of e-commerce companies focusing on visually appealing packaging trends.
- Liquid cartons/tetra packs are one of the fastest-growing packaging types, driven by non-alcoholic beverages. Companies opt for this package type, as it is more modern and attractive than plastic pouches for liquid milk or PET bottles for juices and other beverages.
- Central and Eastern Europe have seen a rise in beverage carton recycling rates, aligning with the EU Packaging and Packaging Waste Regulation. This underscores the industry's dedication to circularity. European carton recycling has already attracted investments totaling around EUR 200 million (USD 216 million), with an additional EUR 120 million (USD 129.6 million) anticipated by 2027.
- In June 2023, Tetra Pak and Stora Enso, through a joint investment of EUR 29 million (USD 31.3 million), commenced a new recycling line in Poland, specifically in Ostrołęka. This initiative aims to significantly boost Poland's annual recycling capacity for beverage cartons, with a goal to triple it. The primary focus of this line is the separation of materials from beverage cartons, specifically fibers from polymers and aluminum, which are then recycled into cardboard materials.
- The project aims to not only enhance the recycling process but also to minimize the need for virgin fibers. The anticipated annual capacity of this new line is 50,000 tonnes, which, if achieved, would elevate Poland's annual beverage carton recycling capacity from 25,000 to 75,000 tonnes. Additionally, the project is designed to cater to the increased beverage volumes from countries like Czechia, Hungary, Slovakia, Latvia, Estonia, and Lithuania.
Understand The Key Trends Shaping This Market
Download PDF
Germany is Expected to Hold a Significant Market Share
- With the rapidly changing technological environment, the packaging industry is set to improve its products by adopting various technologies to enhance and improve productivity. Due to increased legislation against excessive levels of plastic pollution, green packaging materials have the potential to see a rise in utilization throughout the forecast period. As a result of these constraints, paper packaging is expected to be in high demand in the business, as it can be used as a plastic substitute.
- Owing to sustainability factors, players in the region are focusing on expanding the capacity of paper-based packaging. In March 2024, Protega Global, a prominent sustainable packaging supplier, bolstered its European supply chain by inaugurating a new distribution center in Numbrecht, Germany. After the Interpack event in Dusseldorf in May 2023, Protega pivoted toward the northern European market, marking a pivotal moment in its expansion strategy.
- Protega launched its innovative Hexcel wrap, which is a recyclable paper-based protective packaging positioned as an eco-conscious alternative to traditional plastic bubble wrap. The Hexcel line, including void fill and paper cushioning, is exclusively manufactured in the United Kingdom. This versatile product provides robust protection for a wide array of items, ranging from cosmetics and crockery to gin and jewelry. By transitioning to FSC-certified paper and card packaging, companies can significantly slash their carbon footprint.
- Driven by various government regulations regarding sustainable packaging and growing consumer awareness about the impact of their buying choices on the environment, the demand for paper and paperboard packaging is anticipated to rise during the forecast period. According to Statistisches Bundesamt, in 2023, the German paper packaging market saw a revenue of approximately EUR 14.4 billion (USD 15.70 billion).
Get Analysis on Important Geographic Markets
Download PDF
