Europe Paper Packaging Market Size

Europe Paper Packaging Market Analysis

The Europe Paper Packaging Market size is estimated at USD 91.71 billion in 2024, and is expected to reach USD 114.12 billion by 2029, growing at a CAGR of 4.47% during the forecast period (2024-2029).

• Paper packaging is a low-cost and versatile way to protect, store, and transport various products. It can also be customized to satisfy the needs of consumers or product-specific requirements. Attributes like biodegradability, lightweight, and recyclability of paper packaging make it an essential component for packaging. Due to such factors, the demand for such packaging has increased in the food and beverage sector.
• In May 2022, by collaborating with PulpexLtd, a sustainable packaging technology firm in the United Kingdom, Kraft Heinz Co. developed a paper-based Heinz ketchup bottle. The bottle is manufactured from environmentally sourced wood pulp and is renewable and recyclable. Following that, Kraft Heinz will test prototypes to gauge performance before putting the bottle to the test with consumers and finally bringing it to market. The container would enable Kraft Heintozto to make all packaging recyclable, reused, or compostable globally by 2025. By 2050, the corporation wants to be net-zero regarding greenhouse gas emissions.
• Also, with the focus shifting towards sustainability, paper and paperboard packaging are expected to gain traction, with the country pushing for paper packaging products over plastic packaging for various end-user industries, including healthcare, food and beverages, retail, and e-commerce. Surging demand for paper packaging in the e-commerce industry will support market growth.
• In July 2022, Amazon replaced plastic air pillows with paper for e-commerce across Europe. This paper, called dunnage, is specially designed to keep the product from moving inside the package, preventing damage. Packaging applies to all products sold through Amazon, including those that use Amazon's fulfillment services. Getting rid of plastic is a step in the right direction for Amazon. Still, paper dunnage is heavier than its plastic predecessor, which could increase the carbon footprint of Amazon's deliveries in countries such as Spain. Amazon's latest step is to reduce single-use plastic packaging after switching from single-use plastic bags for Amazon-fulfilled shipping to paper bags and cardboard envelopes across Europe.
• One significant challenge is the limitation of paper packaging in handling heavy materials. Paper is more structurally strong than polymers or metals, making it less suitable for packaging heavy products or providing the same level of protection. This limitation has led to the dominance of polymers and metals in industries requiring heavier items' packaging. Additionally, the environmental impact of paper packaging is a concern. Procuring raw materials for paper production, particularly wood pulp, can contribute to deforestation if not managed sustainably. Deforestation can adversely affect ecosystems, biodiversity, and climate change. Furthermore, producing paper, mainly through specific processes like bleaching, can discharge dioxins, which are hazardous pollutants. These pollutants can have detrimental effects on the environment and human health.
• The European paperboard packaging industry experienced a positive impact from the COVID-19 pandemic, primarily driven by the food and beverage sector. The early spread of the virus led to an increase in demand for essential packed food and beverage products as consumers stocked up on supplies. This surge in demand posed challenges for companies as they had to adapt to rapidly changing demand patterns while facing supply chain disruptions. The market also experienced rapid growth of e-commerce during the pandemic, further fueling the demand for paperboard packaging in the food and beverage industry. With more people opting for online shopping, there was an increased need for packaging materials to ensure the safe delivery of products. This trend was not limited to the food and beverage sector alone, as online pharmacy and drug store sales also experienced significant growth, contributing to the increased demand for paperboard packaging.