The German paper sack industry recorded a slight recovery in 2025. Despite high costs and uncertainties, the industry is optimistic about the future and is preparing for new EU regulations.
The German paper sack industry recovered slightly in 2025: companies delivered 3.2 per cent more paper sacks than in the previous year. The agricultural and food sector in particular, including seeds, animal feed, milk powder and food, recorded significant growth. The minerals sector also developed positively, while the market for building materials excluding cement and chemicals grew slightly. A decline was only observed in the cement segment. In a European comparison, Germany continues to hold second place behind Italy.
The members of the Gemeinschaft Papiersackindustrie e. V. (GemPSI) rated their business situation in 2025 as satisfactory with an average of 3.0 points, which represents an improvement of 0.2 points compared to the previous year. Satisfaction with the business situation remained at the previous year's level. The range of high-quality packaging solutions and the trusting relationship with customers had a positive effect. Despite considerable fluctuations and uncertainties, demand for paper sacks increased over the course of the year.
Challenges posed by costs and competition
High energy costs and uncertainties in the overall economic situation led to cautious ordering behaviour among the most important customer groups. The weak construction industry and increasing competition from the Far East exacerbated the situation, particularly in the chemical sector. Rising labour costs and paper prices also weighed on companies. Geopolitical changes, the uncertain implementation date of the European Deforestation Regulation (EUDR), US tariffs and increasing bureaucratic requirements caused turbulence in the market.
Regulations and market trends
In 2025, customers focussed on regulatory issues such as the EU packaging regulation (PPWR) and the EUDR. This led to a high demand for information and advice. At the same time, cost pressure and potential savings along the supply chain came more to the fore. Some paper sack manufacturers observed changes in packaging design requirements, particularly with regard to barrier films, microbiological purity and recyclability of materials.
Outlook for 2026
GemPSI members expect stable to slightly positive development in the paper sack market in 2026. Around 67 per cent of respondents anticipate moderate growth, while 33 per cent expect the trend to remain largely unchanged. The companies assess their business prospects for 2026 with an average of 2.5 points more optimistic than in the previous year. Positive impetus is forecast in the chemical products market segment in particular, as well as in the cement and building materials sectors.
GemPSI members see themselves well positioned in the market with their products. Their high-quality product range as well as their high flexibility and reliability are decisive factors. In addition, German paper sack manufacturers already fulfil numerous regulatory requirements, for example in connection with the PPWR, EUDR and the reduction of the carbon footprint. The Repasack take-back and recycling system will also be continued after the PPWR and the National Packaging Law Implementation Act come into force and covers the extended producer responsibility requirements for commercially used packaging.
The results of the industry survey show that PPWR, VerpackDG and EUDR will require a great deal of adaptation and preparation in the coming years. Accordingly, companies are reviewing their product portfolios, intensifying cooperation along the supply chain and building up internal expertise.
Source: Gemeinschaft Papiersackindustrie e. V.
