The packaging industry faces a complex mix of stable earnings and growing uncertainty in 2025. The latest industry survey by the Industrial Association for Paper and Film Packaging (IPV) shows that companies are facing significant challenges despite a stable earnings situation.
A weak economy, rising costs, and a dense regulatory landscape are significantly impacting investment and business expectations.
The earnings situation for companies proved to be robust in 2025. Around 50 percent of the companies surveyed achieved a return of more than two percent. Nevertheless, 20 percent of companies recorded a return below 0.5 percent, which indicates heterogeneous development within the sector. Revenue development was uneven: while 40 percent of companies reported a decline, 30 percent were able to record an increase of more than two percent. Rising raw material and production costs noticeably affected the revenue development for 70 percent of companies.
Challenges through regulations
A central theme of the survey is the burden of bureaucratic requirements and regulations. IPV Managing Director Karsten Hunger criticises the excessive documentation and proof obligations that increasingly burden companies. The European regulatory flood, particularly the EU Packaging Regulation (PPWR) and the EU Deforestation Regulation (EUDR), is viewed critically by companies. These regulations lead to increased administrative effort, which is perceived as not very business-friendly.
Employment and skills shortage
The employment situation in the packaging industry presents a mixed picture. While 40 per cent of companies reported a decrease in staff numbers, 30 per cent were able to maintain or even increase their workforce. The shortage of skilled workers has eased slightly compared to the previous year, but remains a challenge. Only half of the companies were able to fill all advertised training positions, which is attributed to a lack of suitable applicants or unsuitable applications.
Investments and Business Expectations
Company investment activity in 2025 was varied. While 40 percent of companies increased their investments, 20 percent reduced them. For 2026, many companies are planning more cautiously, with 50 percent expecting investments to fall. IPV board spokesperson Jens Vonderheid emphasised the importance of stable political frameworks for investment decisions. Business expectations for 2026 remain subdued, with 40 percent of companies expecting a weaker performance than in the previous year. High competitive pressure, rising energy and site costs, and global political developments are perceived as risks.
Source: IPV Industrial Association for Paper and Film Packaging
