Sector development

The product portfolio of the trading and production companies of Heinzel Group comprises short- and long-fiber pulp as well as packaging papers based on pulp and recovered paper.The general economic development was also reflected in the paper industry, which was still characterized by stagnating sales volumes and persistent pressure on margins, with developments varying in the individual product segments.Competition in the paper industry remained fierce. In addition to weak demand, the companies’ cost position was also burdened by rising raw material, energy and logistics costs. In spite of these difficult conditions, the paper industry tries to secure its economic stability by increasing its focus on specialized products, process optimization and efficiency increases.At the same time, the industry is driving further developments in the area of sustainability, for example through investments in resource-efficient technologies, improved circular processes and alternatives to fossil-based materials. In this way, the paper industry makes a growing contribution to a more sustainable economy.PulpWhile the pulp market was largely stable in the first half of 2025, the market environment started to weaken in the third quarter. Lower capacity utilization of paper machines, a decline in volumes sold to China and higher supply led to increased availability of spot volumes and to falling prices. The demand for long-fiber pulp (NBSK) remained at a low level in the graphic paper segment throughout 2025. In the tissue segment and in the special paper segment, the volumes sold were largely on target.ContainerboardThe European containerboard market continued to be characterized by oversupply in 2025. Despite a temporary recovery in spring, demand remained subdued overall. Supply exceeded demand for much of the year. Higher export volumes also did not lead to a sustainable easing of the situation. Accordingly, capacity utilization fell short of the level planned in parts of the industry. After a stabilization in spring, the market weakened again in the second half of the year. The price level declined over the course of the year.Kraft Paper2025 was an extremely challenging year for the paper industry as a whole and also for the kraft paper sector. Along with the established players, an increasing number of new suppliers continuously try to gain a foothold in the packaging paper segment. In addition to sack kraft manufacturers targeting paper for carrier bags, new competitors who previously concentrated on copy paper and similar grades are now entering the market.The general trend of replacing fossil-based packaging with renewable resources continues unabated, driven by global manufacturers of branded products. This affects applications in both the food and non-food segments.