The European pulp and paper industry witnessed a further contraction in 2025 as high energy prices, stagnant demand, and intensifying global competition continue to weigh on manufacturers. According to preliminary figures released by Cepi, paper and board production in Europe fell by 1.5% compared to the previous year. While some segments show signs of stabilization, total output remains nearly 7% below the record levels achieved in 2021, signaling a prolonged industrial downturn.
The 2025 statistics reflect a broader crisis within European industrial manufacturing. Jori Ringman, Director General of Cepi, noted that despite the sector’s “moderate resilience,” high operational costs and regulatory burdens have placed European companies at a competitive disadvantage compared to North American and Asian counterparts.
Quantitative Data: The 2025 Balance Sheet
Production indicators across Cepi member countries reflect a clear negative trend:
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Total Paper and Board Production: European output decreased by 1.5%, continuing the downward trajectory observed over the past few years.
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Drastic Drop in Graphic Papers: This segment remains the most vulnerable, recording a 7.2% decline driven by the ongoing shift toward digital media and changing consumption habits.
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Packaging Materials: Packaging paper and board, which accounts for 63% of total production, remained stagnant with a minimal growth of only 0.1%.
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Sanitary and Household Papers: Production of tissue and hygiene products saw a slight decrease of 0.8%.
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Comparison to Peak Levels: Current production volume is now 6.8% lower than the historical peak reached in 2021.
Global Context: Europe vs. The World
The data suggests that while the decline is felt globally, Europe’s situation is particularly acute due to local cost structures:
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Global Average: Worldwide paper and board production remained largely stable, decreasing by only 0.3%.
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Declines in Other Regions: Several major producing nations, including the United States, Japan, Canada, and South Korea, reported even sharper production drops ranging between 1.9% and 5.7%.
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The Exceptions: China continued to increase its market dominance with a 2.9% growth in production, while Brazil (a key pulp supplier to Europe) ended the year with a slight increase of 0.1%.
Trade Balance and Import Pressure
Although the European paper industry remains a net exporter—a rarity among energy-intensive sectors—its market position is weakening.
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Export Decline: European paper exports are estimated to have decreased by 2.2% in 2025.
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Rising Imports: Simultaneously, imports into Europe rose by 1.4%, indicating that external players are capturing a larger share of the domestic market.
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Trade Surplus Contraction: The sector’s trade surplus narrowed by 4.4% compared to the previous year.
Structural Challenges: Factors Behind the Figures
The report identifies several key factors driving the weak performance of the European sector:
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Energy and Raw Material Prices: European energy prices remain significantly higher than the global average, making cost-based competition nearly impossible for many mills.
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Regulatory Burdens: Increasing environmental and sustainability requirements (such as strict forestry regulations) are adding to administrative and operational costs.
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Geopolitical Tensions: Global trade disputes and regional conflicts continue to disrupt supply chains and increase logistics costs.
Summary: The Risk of Deindustrialization
Cepi’s 2025 figures serve as a warning to European policymakers. While the industry remains a global leader in the circular economy and bio-based materials, the 1.5% drop in production indicates that sustainability alone is not enough to ensure economic survival. The federation is calling on the European Union to take concrete steps under the “Industrial Deal” to mitigate energy costs and preserve the competitiveness of the continent’s manufacturing base.
Official Sources:
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Cepi Press Release – 2025 Preliminary Statistics (Feb 17, 2026): https://www.cepi.org/press-release-new-2025-pulp-paper-manufacturing-figures-show-moderate-resilience-in-a-context-of-rising-costs-increased-competition-and-industrial-downturn/
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Cepi Preliminary Statistics 2025 – Full Report: https://www.cepi.org/wp-content/uploads/2026/02/FINAL-Cepi-Preliminary-Statistics-2025.pdf