Europe's paper industry is facing a gradual erosion of its industrial base, prompting Cepi to call for stronger policy measures to safeguard the sector's long-term competitiveness despite continued progress in decarbonization and circularity.
According to Cepi's 2025 Key Statistics Report, European paper and board production declined 1.6% to 77.4 million tonnes in 2025. Market pulp production increased by 1.0%, but early 2026 figures suggest the slowdown is continuing, with first-quarter output down 2.4% compared with the same period in 2025.
Mixed market performance
Market segments performed unevenly in 2025. Graphic paper production continued to contract, falling 7.3%, while packaging grades remained broadly stable despite a 5.4% decline in paperboard production.
Cepi noted that even excluding graphic papers, European production remains 7% below the record level reached in 2021. The association attributes the trend to intensifying global competition combined with an increasingly uncertain geopolitical environment.
Import penetration reached a record 7.7% of EU consumption in 2025. Although exports still account for more than 20% of production, the industry's trade surplus narrowed slightly during the year.
Sustainability progress continues
Despite weaker market conditions, the sector continued to improve its environmental performance. Specific CO₂ emissions declined by 10.2% in 2025, while Europe's paper industry continued to operate the world's most effective paper recycling system.
The industry continued to source the vast majority of its wood and nearly all recovered fibre from within Europe, reinforcing the resilience of its regional supply chain.
Call for policy action
Based on the report's findings, Cepi is urging European policymakers to strengthen trade defence measures, establish a more predictable investment framework and reinforce circular bio-based value chains.
Cepi warns that without timely policy action, Europe risks a gradual loss of industrial capacity in a sector that remains critical to packaging, hygiene products, logistics and the development of bio-based alternatives to fossil-intensive materials.
Cepi (the Confederation of European Paper Industries) represents the European paper industry through 19 national associations. Its membership includes around 450 companies operating approximately 740 mills across Europe and directly employing more than 176,000 people. Cepi represents producers of paper and board, tissue and hygiene products, specialty papers, cellulose-based textile fibres and a growing range of bio-based products derived from wood fibre.
