The Austrian paper processing industry recorded a slight decline in production and significant challenges in exports in 2024. Despite high personnel costs and regulatory pressure, the industry expects to break even in 2025.
The Austrian paper processing industry (Propak) closed 2024 with a production value of 2.73 billion euros - a decrease of 1.0 % compared to the previous year. Although the production volume increased slightly, according to Propak Chairman Georg Dieter Fischer, this is not real growth: „We are back at the level of 2017 - but with the costs of 2025.“
The decline in the export value by 5 % was particularly severe. With an export ratio of 80 %, the sector is heavily reliant on foreign markets - above all Germany, which accounts for over 30 % of the trade volume. The labour cost gap is massively hampering competitiveness.
Fischer warns: „If we don't rethink, Austria will continue to lose ground as a business location.“ The trade association chairman calls for a debate on wage restraint in order to secure jobs in the long term.
Costs, bureaucracy, shortage of skilled labour: triple burden
- Labour costs: According to Propak Vice President Marko Bill Schuster, standardised products will soon no longer be competitive in Austria. He calls for a balance between fair pay and operational affordability.
- Bureaucracy: Propak Managing Director Martin Widermann particularly criticises the complexity of European regulations and their indirect impact on SMEs.
- Skilled labour: 50 % of companies describe recruitment as „difficult“. Positive: 6 % more apprentices in 2024, a success of targeted training and employer branding measures.
Sustainability as a strength of the industry
In the sustainability debate, Propak clearly sees itself as a solution, not a problem:
- Products consist of 75 % recycled material
- Recycling rates for paper/cardboard/corrugated cardboard are reported to be 85 %
- Paper fibres can be reused up to 25 times
Widermann: „Our packaging is a circular champion - this has also been recognised by the EU Packaging Regulation.“
Outlook 2025: Black zero in sight - „but only with compromises“
Despite the economic uncertainties, the industry is cautiously optimistic. The member companies' forecasts point to a balanced financial year in 2025. The prerequisite: a new common understanding with the social partners in collective bargaining negotiations, as they say.
Source: Propak
