In its industry update, the Gemeinschaft Papiersackindustrie e. V. (GemPSI) reports an increase in sales of 7.8 per cent in the first half of 2025 compared to the same period last year. At the same time, the industry rates the business situation as „satisfactory“ and sees increasing administrative costs and regulatory uncertainties as key challenges. The results are based on a member survey conducted between the beginning and middle of September 2025.
The detailed analyses show a broad increase in demand across several segments. Paper sacks for miscellaneous products such as green waste (+23.3 per cent), food excluding milk powder (+21.9 per cent), seeds (+20.8 per cent) and animal feed (+18.2 per cent) saw particularly strong growth. Chemicals (+5.7 per cent), minerals (+5.3 per cent) and cement (+4.7 per cent) also increased; the building materials (+1.9 per cent) and milk powder (+0.2 per cent) sectors grew only slightly. In a European comparison, the German paper sack industry maintained second place in the first half of the year.
Business situation and environment
The companies surveyed rated their situation in the first half of 2025 with an average of 3 points on a scale of 1 („very good“) to 5 („very poor“). Half of incoming orders remained stable, a third reported growth and another third reported declines. A strong start to the year, fuelled by higher demand from individual customers, had a positive effect. Overall, however, the industry is operating in an environment characterised by intense, inflation-driven cost pressure and high regulatory requirements. At the same time, rising construction production figures in parts of Europe, a better-than-expected start in the chemical industry and new fields such as battery materials and recycling point to opportunities, according to the report.
Regulatory uncertainties characterise the first half of the year
The companies cite unclear requirements relating to the EU Deforestation Regulation (EUDR), the EU Packaging Regulation (PPWR) and supply chain laws as major challenges. This complexity is reflected in numerous customer enquiries about sustainability issues. Additional uncertainty arose from the debate about possible US tariffs and the competitive pressure from Chinese chemical companies, which could put further pressure on European production. In some companies, a high sickness rate also led to restrictions and more administrative work.
Outlook for the second half of 2025
For the second half of the year, two thirds of companies expect stable development, while one third anticipate slight growth. At an average of 3.173 points, the business outlook is at a similar level to the first half of the year. Estimates for turnover differ; the majority see demand stimuli primarily in the food excluding milk powder and animal feed segments. Companies are pinning their hopes on a gradual economic recovery, increasing investment in construction and chemical applications and greater clarity in the interpretation of European packaging legislation. More efficient processes and innovative solutions could provide additional growth impetus in 2026.
Source: GemPSI
