In 2019, Cepi members produced close to 90 million tonnes of paper and board, of which 54.6% werebased on recycled fibres-compared to 53.1% in 2018-as indicated by the utilisation rate of Paper for Recycling (PfR).This exceptional performance goes hand in hand with a 72% paper recycling rate after 71.7% the previous year, reinforcing our commitment to sustainable and circular business practices. More than ever, paper for recycling is a major source of fibreswhile the share of domestic wood used by the pulp and paper industry reached 84.2% in 2019 (84.1% in 2018), demonstrating that we are truly “Made in Europe” from European raw materials. Of wood consumed, a large share (24%) is also circular as it is residues from saw mills and wood working industries. Our industry is alsoa net exporter with 22% of our production exported outside Europe. Speciality paper & board production was stable in 2019, showing robustpositioningon end-markets. Also, market pulp production grew (+6.1%) as a result of recentsignificantinvestments in new capacities.Market pulp exports grew by 48% in 2019.
Over the first 5monthsof 2020, due to the COVID-19 impact, paper and board production declined but to more favourable rate (-4.5%,)than what most other manufacturing industries experienced(on average -20.4%), showing that the Covid-19 impact on pulp & paper industry was less pronounced than in other manufacturing sectorsdue to intrinsic resilience of our sector.Paper and board consumption declined in 2019 following the slowing down of the EU’s economy.However domestic demand for hygiene papers (tissue, toilet paper, etc.) remained relatively highin the first months of 2020,and packaginghas been benefiting from e-commerce growth. The COVID-19 crisis has also acceleratedan underlyingchange in consumption patterns related to the increase in teleworkingand digitalisationwhich could have a long-lasting impactin the retail structuresand production patterns.It could also open new opportunities for packaging.Similarly, production patternsare likely to change after the crisis exposed the lack of resilience of the EU economy; repatriation of industry, such as pharmaceuticals, in Europe is positive also for pulp and paper industry.
During the lockdown situation,our industry has been recognized as an essential sector in various Member Statessuch as Belgium, Czech Republic, Finland,Hungary,Italy andSpain. In line with this recognition,the priority for our industry has been to ensure that EU citizens were able toaccess the products they neededfor hygiene, health and food purposes. In that spirit, we have been working with other industries in the value-chain to operate as much in a “business as usual” mode as possible and guarantee security of supplyand transport despite the lockdowns.In 2020, paper and board markets will likely be impacted by the anticipateddecline of the European GDP in 2020both in the EU and the euro area by -8.3% and -8.7%respectively as a result of the Covid-19 crisis (source: EU Commission –Summer economic forecast 2020). However, in2021, the EU economy is expected to grow by 5.8% and the euroarea economy will grow by 6.1% bringing a positive outlook for paper and board markets as well, knowing that they will rebound.
Source: Cepi