New report highlights continued decline of European paper production

The Confederation of European Paper Industries (Cepi) has released its 2025 Key Statistics Report, highlighting a slow but continued decline in paper and board production – despite its significant contribution to Europe’s circular economy and climate goals.

According to the report, overall paper and board production in Europe declined by 1.6% in 2025, reaching 77.4 million tonnes. Cepi believes that this reflects “a continued correction after the post-pandemic surge,” rather than a return to stable growth.

While market pulp production grew by 1.0%, this represents a strategic but relatively small proportion of the sector’s overall production. According to Cepi, early signals from 2026 point to continued weakening for the sector, with output already down 2.4% in the first quarter compared to the same period in 2025.

The decline comes despite European pulp and paper producers’ strong sustainability performance. Pulp and paper producers reduced specific CO2 emissions by 10.2% in 2025, continues to operate what Cepi calls “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.

While the organisation found that overall demand has only slightly eroded, the figures show a number of notable structural shifts. For example, while production of packaging grades remained stable, there was a significant contraction for cartonboard (-5.4%) while graphic papers declined sharply (-7.3%).

Excluding graphic papers, European production was relatively stable in 2025, but still 7.0% below the record levels of 2021. Cepi believes that this reflects an intensifying global competition, with impacts worsened by a difficult geopolitical context.

Paper industry consultant, EMGE, recently warned that significant paper overcapacity in China is driving a surge in low-cost exports, potentially placing downward pressure on prices and prompting calls for protective trade measures in key markets.

Paper producers worldwide have raised prices in lockstep in 2026, highlighting issues including electricity and natural gas price rises, as well as a general rise in the cost of paper pulp.

Many companies also point to an especially competitive market and the impacts of global events including the recent conflict in the Middle East, with the sum of all the factors creating a ‘perfect storm’ of unprecedented operating costs for paper manufacturers.

Based on the findings from its report, Cepi has called for clear policies to be implemented to protect Europe’s paper industry.

In a statement following the release of the report, Cepi says: “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 €6.6tn (£5.6tn) global opportunity in emerging bioeconomy markets by 2030.”

Jori Ringman, director general of Cepi, adds: “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.”