Europe’s paper industry is facing a gradual but persistent erosion of its industrial base, according to Cepi’s 2025 Key Statistics Report, which calls for urgent policy action to safeguard the sector’s competitiveness while supporting Europe’s circular economy and climate objectives.
The report shows that European paper and board production declined by 1.6% in 2025, reaching 77.4 million tonnes, reflecting a continued market correction following the exceptional post-pandemic demand. Market pulp production, which represents a smaller share of the sector, increased by 1.0%, although the first quarter of 2026 already points to further weakening, with production down 2.4% compared with the same period of the previous year.
While overall demand remained relatively stable, the report highlights significant structural changes across product segments. Packaging paper production broadly held its ground despite a 5.4% decline in cartonboard, whereas graphic papers continued their long-term contraction, falling by 7.3%. Excluding graphic papers, production remained relatively stable during 2025 but was still 7% below the record levels reached in 2021, reflecting growing international competition and an increasingly challenging geopolitical environment.
Cepi also notes that the European industry has continued to lose production capacity over the past three years. At the same time, imports reached a record 7.7% of EU consumption, while the European Union’s trade surplus for paper products narrowed slightly. According to the association, state support granted to foreign competitors and unequal market conditions are placing additional pressure on European manufacturers.
Despite these challenges, the report underlines the industry’s strong sustainability performance. In 2025, European pulp and paper producers reduced their specific CO₂ emissions by 10.2%, continued to operate what Cepi describes as the world’s most efficient paper recycling system, and sourced 92% of their wood together with almost all recovered paper from within Europe, reinforcing the sector’s contribution to resource security and the circular bioeconomy.
Cepi believes these figures highlight the need for a coordinated industrial strategy capable of preserving Europe’s manufacturing capacity in a sector that supplies essential products for packaging, hygiene, logistics and bio-based alternatives to fossil-intensive materials.
Commenting on the report, Jori Ringman, Director General of Cepi, said: “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.” He added: “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.”
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