According to the German Association of Paper Converters (WPV), the paper, cardboard, paperboard and film processing industry in Germany also suffered a decline in sales in 2020, the year of the coronavirus pandemic, after 2019.
According to WPV sales of paper and cardboard goods fell by -3.7 per cent to €18.19 billion in 2020 compared to 2019. The economic situation in the paper and film processing sector was thus better than the overall economic decline in gross domestic product in Germany of -5.3 per cent.
At EUR 13.24 billion, domestic sales were -3.5 per cent and foreign sales -4.2 per cent down on the previous year. The Sector export ratio has thus fallen to 27.2 per cent, with around 70 per cent of industry exports going to eurozone countries. While these fell by -3.1 per cent to EUR 3.52 billion last year, sales to other foreign countries were seven per cent lower than in 2019 at EUR 1.42 billion.
Sales of packaging made of paper, cardboard, paperboard and film fell by -2.3 per cent to €11.05 billion in 2020 compared to 2019. At EUR 8.29 billion, domestic sales were -3.2 per cent below the previous year, while foreign sales were up slightly by 0.5 per cent at EUR 2.76 billion. This corresponds to a increased export ratio compared to 2019 of 24.9 per cent. The number of employees in paper, cardboard, paperboard and film processing in 2020 was down -1.6 per cent on the previous year, with a monthly average of 81,922 employees.
Increasing cost burdens for paper processors
While film and paper processors suffered lower sales losses during the pandemic crisis compared to other sectors, Pressures on rising costs on the revenue situation of companies. Since mid-2020, raw material prices for paper, which are the largest cost item in paper processing, have risen significantly and further price increases have been announced for spring 2021.
Especially the Recovered paper market shows increasing shortage due to higher demand with correspondingly rising purchase prices for the most important raw material, recovered paper. In addition, the changing requirements for cross-border transport within Europe due to the pandemic are making raw material deliveries more difficult and more expensive overall.
The new New CO2 tax introduced in Germany in 2021 increases the cost pressure on companies. The preventive measures taken in companies since the start of the coronavirus pandemic in spring 2020 to contain the spread of the virus represent an additional cost factor.
According to the latest Ifo Business Climate Index survey for the paper, board and cardboard processing industry, around one in two of the companies surveyed expects the cost burdens to continue to have a negative impact on their business. Rising sales prices for paper and cardboard goods in the coming months.
Source: WPV e.V.
