German paper sack industry: stable market development in 2024
The German paper sack industry closed the 2024 financial year with slight growth. It delivered 1.1% more paper sacks than in the previous year. Despite ongoing economic uncertainties, the member companies of the Gemeinschaft Papiersackindustrie e. V. (GemPSI) consider their market position to be stable. At the same time, the industry is preparing intensively for the implementation of the European Union’s new regulatory requirements.
In 2024, demand for paper sacks increased in the areas of construction materials (excluding cement), chemicals, food (excluding milk powder), animal feed and minerals. In contrast, there were declines in cement, milk powder and seeds. In a European comparison, the sector retains a strong position in Europe and ranks second after Italy.
Moderate growth in a challenging
environment
GemPSI member companies rate their business situation for 2024 as satisfactory with an average score of 3.2 points and their satisfaction with the business situation at 3.3 points. The macroeconomic conditions, in particular the economic uncertainty in Germany, influenced market development and led to restrained investment in various industrial sectors. At the same time, catch-up effects following destocking by customers in 2023 led to an upturn in demand. In addition, the German paper sack industry was under high cost pressure in 2024 due to rising prices for energy, raw materials and paper as well as regulatory requirements and higher wage costs. Companies that invested in new market segments and efficient packaging solutions were able to stimulate growth.
Regulatory requirements as a driver
Regulatory requirements, environmental aspects and economic factors increasingly influenced product selection in the paper sack industry in 2024. Demand for brown paper remained a clear trend. In addition, packaging with a higher recycled content gained in importance, as did the switch from plastic to paper. Customers in the German paper sack industry also focused on more resource-efficient solutions for plastic films. Growing regulatory requirements, particularly as a result of new EU regulations, also led to an increased need for information and advice along the entire supply chain.
Challenges and opportunities in 2025
GemPSI members are cautiously optimistic about 2025, with the majority of respondents expecting demand to remain stable. The general assessment of business prospects is at a satisfactory level with a score of 3 points. The industry representatives see themselves well positioned in the market and rate their market position positively with a score of 1.83 points. They attribute this to their high level of expertise in the production and sale of customized, recyclable solutions that meet high product and hygiene standards. The industry also offers an established take-back and recycling system via REPASACK. According to the respondents, the topic of recycling will continue to gain in importance for many of their customers, as will an even smaller carbon footprint and even more efficient use of resources. There have been signs of a slight market recovery since November 2024, particularly in the construction, food and animal feed industries. GemPSI representatives cite political decisions, international market developments and possible price increases for paper as the main factors influencing business development. In the long term, however, market recovery depends primarily on economic conditions and demand in key sectors.
Increasing information requirements
due to EU legislation
Increasing regulatory requirements will continue to influence business development in the future. For example, GemPSI members expect the new PPWR packaging regulation to lead to a significant increase in information, consulting and administrative costs. In addition, many requirements first have to be specified in delegated acts. The increasing demand for recycled materials in particular requires adapted warehousing and production planning. The EU regulation for deforestation-free products EUDR also poses challenges. From 2025, companies will have to prove that their products do not originate from recently deforested areas. GemPSI members already meet strict sustainability criteria. However, they anticipate a higher documentation effort and the need to set up due diligence systems. Smaller companies in particular could face a proportionately greater financial burden as a result. “To ensure smooth implementation of EU legislation and continue to provide our customers with legally compliant and efficient packaging solutions, we are investing in training and human resources at an early stage,” explains Alfred Rockenfeller, GemPSI Chairman. With their high level of expertise and existing recycling structures through REPASACK, GemPSI members also see opportunities in the new legislation. “Through innovations and sustainable packaging solutions, we can further strengthen our market position and optimally meet the growing demand for resource-saving alternatives,” emphasizes Rockenfeller. “In this way, the paper sack industry remains a reliable partner for sustainable and efficient packaging solutions.”
The contents of the industry barometer were compiled using a questionnaire and desktop research based on relevant third-party publications. The entire industry barometer, including detailed figures and comprehensive explanations, can be downloaded here. Further information on the paper sack industry association:
