In January 2025, the European packaging paper market observed continued price adjustments due to tepid consumer demand. Testliner prices fell by 3% month-on-month to €670/metric tonne, and Kraftliner prices decreased by 2% to €865/mt. Meanwhile, raw material costs showed slight increases; Northern bleached softwood kraft (NBSK) pulp rose by 0.7% to €1,430/mt, while recovered paper prices stabilized.
Amidst weak demand and market overcapacity, competition among producers remains intense, maintaining low margins. Companies are optimizing assets through mergers and acquisitions. In October 2024, Mondi announced the acquisition of Schumacher Packaging's assets in Germany, Benelux, and the UK for €634m. In January 2025, the European Commission approved the sale of five International Paper mills in Europe for $7.16bn, indicating sector consolidation.
As the industry adjusts to subdued demand, packaging paper prices may remain low. However, consolidation efforts could lead to a balanced supply, potentially enhancing profitability over time.
Source: Mintec/Expana