Despite the recession, sluggish consumption and rising costs, the German corrugated board industry proved resilient to the crisis in 2024. As reported by the Verband der Wellpappen-Industrie e. V. (VDW), sales rose slightly by 1.1 per cent compared to 2023, to 7.41 billion square metres of corrugated board - a small increase in a difficult economic environment.

However, turnover still fell by 8.2 per cent. The reason for this was massive cost increases, particularly for corrugated base paper (+140 euros per tonne for recycled grades) and for freight and personnel. These could only be partially passed on to customers.

Economic downturn hits home; consumption and industry weaken

Dr Steffen P. Würth, Chairman of the VDW.
Image: Verband der Wellpappen-Industrie e. V.

”As developments in the corrugated board industry are generally closely linked to the overall economic situation and consumer sentiment, this result unfortunately comes as no surprise”, says VDW Chairman Dr Steffen P. Würth. 2024 was not am optimistic year in economic terms, with two years of recession in a row – something not seen in Germany for more than 20 years.

The entire supply chain was under pressure, with the industrial and consumer goods sectors particularly reluctant to place new orders. The subdued consumer climate, coupled with high energy prices and geopolitical uncertainties, put direct pressure on the packaging business.

Expensive raw materials – price spiral in paper procurement

A major cost factor was the increased prices for corrugated base paper. Recycled grades became an impressive 140 euros more expensive per tonne over the course of the year, while virgin fibre papers also became significantly more expensive. At the same time, transport costs rose by 4.7 per cent and personnel costs by 2.9 per cent. All this in a market that was already under pressure in terms of prices. The economic robustness of the industry was put to a real test here.

The future in a cycle: sustainability moves further into focus

Despite the economic headwinds, the industry is positioning itself strategically. The circular economy and recyclability are the order of the day - and this is precisely where one of its greatest strengths lies. Würth is positive about the adoption of the new EU Packaging Regulation (PPWR) in December 2024, especially because the planned reusable quotas for transport packaging were not introduced as originally planned. This means planning security for companies that rely on recyclable disposable packaging – a decisive advantage, especially in logistics and industry.