European sack kraft paper market outlook: Six key takeaways
Read on for the key takeaways from the webinar.
- Russian paper import ban resulted in a boom in EU paper demand in the first half of 2022
- Single-use plastic substitution will continue to grow as a key demand driver
- Net exports of European sack kraft paper are expected to grow with more Russian trade outside the region
- Capacity swings in paper production can impact sack kraft paper supply
- High inflation rates and wood prices become the top cost contributors after the energy crisis
- Sack kraft paper prices are dropping from record highs in 2022
Last year, we witnessed the highest prices ever recorded in the sack kraft paper industry, with prices increasing by 84% from Q1 2021 to Q3 2022. This was driven by high costs, strong demand and reductions in paper supply.
Prices started to stabilize by the fourth quarter of 2022 and in the first quarter of 2023, prices have started to drop at a slightly slower rate than the drop in demand. We saw reductions of 1.5% for continental EU and 0.7% in the UK.
Fewer transactions due to industry destocking mean the prices may not fully reflect the market’s current conditions. As more transactions occur, prices will likely adjust to the market situation.
What’s behind your packaging price?
Learn how to monitor packaging prices using cost and price indices and understand the underlying cost drivers, from material cost to labor, energy and more. Examples include cartonboard, liquid container and paper bag.