Paper recycling in the red - latest figures from CEPI 2024 report
CEPI has summarised the paper industry's performance for 2024 with the publication of a comprehensive report on the state of the European pulp and paper industry. The document and the press releases issued by the organisation not only present the latest market data, but also highlight the high circularity rate and the paper industry's ongoing commitment to sustainability.
Recycling decline and production growth as key figures in CEPI 2024 report
The pulp and paper industry ended 2024 on a positive note. Compared to the previous year production increased by 5.9% (from 74 374 thousand tonnes to 78 742 thousand tonnes), exceeding the values forecast in the CEPI provisional statistics for 2024. Thus, after the declines recorded in 2021-2023, there has been quite a recovery. Although the sector is still far from the production levels reached at the peak of the COVID-19 pandemic, the noticeable rebound is definitely encouraging. In parallel with the increase in productionpaper and board consumption also increased at a rate of 7% y/y. Increases in production and consumption were recorded in each of the main categories, even in the hitherto declining graphic paper category.
In 2024. there has also been a noticeable decrease in the recycling rate of paper and cardboard - After a great year in 2023, when we recorded a recycling rate of almost 80 per cent, the paper industry closes 2024 with a decrease in by 4.2% y/y. The CEPI explains, however, that this is not a cause for concern - 2023 was an exceptional year in many respects, with noticeably lower consumption and the trend of de-stocking translated into such a high result.
In the words of Valeria Salvadori, President of the European Paper Recycling Council (EPRC):
The European recycled paper market is performing well and we are on track to meet our 76% recycling target in Europe by 2030. Paper is the most recycled material in the EU and the European paper sector is setting global standards for recycling rates, something I am very proud of.
Growth in the packaging and paperboard sector in 2024.
The growth leader in the paper industry remains the packaging sector, which in 2024 recorded a 6.7% increase in production and 7.8% increase in consumption y/y. This was driven by increased production in each of the packaging categories:
- corrugated board - 4.5%,
- cardboard - 10.9%,
- wrapping paper - 19.7%,
- other types of packaging paper and board - 3.1%.
Paper and cardboard packaging also has the highest recycling rate of all packaging materials, amounting to 83.1% in 2024.
The increase in demand for paper-based packaging is likely to be strongly linked to the transformation of the e-commerce market and the impending regulation under the EU PPWR (PPWR). Packaging and Packaging Waste Regulation). The rise in popularity of subscription models and online shopping across Europe has made the cardboard packaging sector one of the key drivers for the industry as a whole.
High circularity of materials and dominance of locally sourced raw material
CEPI data shows that in 2024, after two years of decline, the use of recycled paper (Paper for Recycling, PfR) increased by 4.1%, indicating a rebalancing of demand for recyclables. The data also means that the whole sector is moving ever closer to GOZ. A key role is played here by layered cardboard (cardboard boxes, packaging for collection, transport and shipping, shop displays), which can be described as the most circular product produced by the paper industry - the the recycling rate for cardboard packaging is as high as 95%. At the same time, the production of corrugated packaging is responsible for the consumption of as much as 66% of recycled raw material. This means that corrugated packaging is not only driving the growth in recycling volumes, but is also becoming one of the most important consumers of recycled raw materials.
Figures from the CEPI report also highlight the growing competitiveness of the European industry in international markets. In 2024. Paper and board exports increased by 4.6% y/y, although it still remains as much as 19% lower than in the record year 2020. At the same time, the sector stands out for its very high degree of self-sufficiency - the as much as 94% of the wood and 96% of the recycled material used in European paper mills comes from within the European Union. Such a high proportion of local raw materials reinforces the independence and autonomy of the industry, and increases the raw material security of the industry as a whole.
Paper industry at the forefront of decarbonisation in Europe
The 2024 report also includes information on energy and water consumption and atmospheric emissions for the entire paper and pulp sector in 2023. The paper industry has long been regarded as one of the greenest. Over the past few years, it has steadily reduced its energy requirements and shifted away from the use of gas, coal and fuel oil to increasing the share of green energy from biomass. In 2023. the share of biomass energy in the sector's total demand exceeded 65%. Total energy demand, on the other hand, fell y/y by 12.2%, from 86,741 GWh to 76,160 GWh.
Carbon dioxide emissions were also reduced over the same period: direct emissions by 15.3% y/y and indirect emissions by 13.8% y/y.
As the CEPI press release reads:
CO2 emissions in the European pulp and paper industry have fallen by 50% compared to 2005 levels, effectively decoupling their level from production growth. CO2 emissions per tonne of paper and board produced fell by 6.3% in 2024, reaching 0.24 tonnes of CO2 per tonne of production. This is the result of investments in cleaner technologies, greener fuels and more energy-efficient operations.
CEPI members in 2024.
The data cited in the CEPI report is based on information from the organisation's 19 members, namely Austria, Belgium, the Czech Republic, Finland, France, Germany, Greece, Italy, the Netherlands, Norway, Hungary, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and the UK.
Sources:
- Key statistics 2024. European pup & paper industry, https://www.cepi.org/press-release-resilient-in-uncertain-times-pulp-and-paper-sector-continues-to-lead-on-sustainability-and-decarbonisation-new-data-shows/
- CEPI, Press release: European Paper Recycling Council Reports Strong Recycling Rates for 2024, https://www.cepi.org/press-release-european-paper-recycling-council-reports-strong-recycling-rates-for-2024/
- CEPI, Press release: Resilient in uncertain times, pulp and paper sector continues to lead on sustainability and decarbonisation, new data shows, https://www.cepi.org/press-release-resilient-in-uncertain-times-pulp-and-paper-sector-continues-to-lead-on-sustainability-and-decarbonisation-new-data-shows/