French papermaking sector may face with stagnation in 2021

Photo: Suez

The volume of paper production and consumption in France will continue to decline in the first half of the current year, due to ongoing lockdowns in the country, caused by the pandemic and the decline of purchasing power of local customers, according to recent statements, made by some leading local analysts in the field of pulp and paper business and some local media reports.


While the official results of the industry’s performance in 2020 were not officially published, representatives of the Association of French Paper Industries (Copacel) at the end of last year expected the decline of the industry by at least 10% in 2020, compared to 2019.


Most of French analysts also expect a tough year for the industry in 2021 due to the ongoing decline of purchasing power of local customers and a slump in printing for advertising.


There is also a possibility that the industry may face with surplus of capacities this year, that may lead to tightening competition in the local market and withdrawal of smaller players, as production costs in the French papermaking sector have significantly increased in recent years.


By: Eugen Gerden