German paper sack industry sees itself well positioned for 2022 despite tense supply situation, effects of the pandemic and the war, according to GemPSI survey; majority of members expect increasing sales, stable development in customer segments

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August 23, 2022 (press release) –

The German paper sack industry delivered 3.3 percent (1) more paper sacks last year than in the previous year.The tense supply situation, the effects of the pandemic and the war are the members of the community paper sack industry e.V. (GemPSI), however, is facing major challenges, as the current survey on the industry barometer shows.Despite these circumstances, the German paper sack industry got off to a good start in the current year and was able to meet a 4.8 percent increase in demand for paper sacks from January to March 2022 compared to the previous year.This year's industry report focuses on paper sacks for food and animal feed, which make up the third largest market segment in the German paper sack industry.

With an increase in delivered sacks of 3.3 percent compared to the previous year, the German paper sack industry will also take second place in a European comparison in 2021.In its second largest market segment, chemicals, it recorded growth of +11.8 percent, and in building materials (excluding cement) it was +2 percent.There was also moderate growth in paper sacks for animal feed (+3.3 percent) and food without milk powder (+2.1 percent).1

Looking back on a year full of challenges

A lack of paper supply, sharp price increases for raw and auxiliary materials and a significant shortage of staff due to illness and quarantine cases - last year the members of GemPSI were able to prove that they knew how to deal with the effects of the corona pandemic with confidence.They countered the poor supply situation with close coordination with customers and suppliers and forward-looking planning.The shifts lost due to the pandemic could largely be compensated for by the commitment of the healthy employees and extra shifts.The industry representatives indicate that the desire for sustainable packaging has continued to gain momentum among customers.In addition to brown sack paper and material reductions, the recyclability of packaging has become increasingly important for paper sack customers.

Only sufficient supply at the beginning of the year

The starting point for the German paper sack industry will remain tense in 2022 as well: The representatives surveyed stated that the availability of operating and auxiliary materials has continued to deteriorate since the beginning of the war.Among other things, the industry is affected by the import ban on kraft paper from Russia.In particular, the supply of sack kraft paper and freight was insufficient.Things were only slightly better for packaging material and plastic films.Delivery times are unpredictably long due to insufficient cargo space and material, energy and gas prices continue to rise.According to the GemPSI members, delivery dates and prices cannot be confirmed in a binding manner when the order is accepted.In order to ensure the highest possible security of supply,make long-term forward-looking agreements in close consultation with customers.Despite the circumstances, the German paper sack industry was able to meet a 4.8 percent increase in demand in the first quarter compared to the previous year2.

Forecast for 2022 basically good

This results in the assessment of the business prospects for 2022 as satisfactory with a tendency towards good (2.7 points)3.The German paper sack industry sees itself well positioned in the market (1.7 points)4, because the paper sack is an environmentally friendly, easy-to-use packaging with reliable product and hygiene protection.The majority of members expect increasing sales and stable development in the individual customer segments.For the coming autumn, however, she sees further shifts being canceled due to the pandemic."Our goal is to continue to act flexibly and to develop pragmatic solutions together with all those involved, which guarantee a needs-based and timely supply of paper sacks," says Alfred Rockenfeller, Chairman of the GemPSI.

In focus: paper sacks for food and animal feed

Paper sacks for food, including milk powder, form the third largest market segment in the German paper sack industry.In 2021, around 118 million paper bags for food were delivered across Germany.In the first quarter of 2022, demand for paper sacks for food (excluding milk powder) remained at the previous year's level (+0.4 percent), while it rose significantly for milk powder sacks (+30.2 percent).The majority of those surveyed expect stable development in the coming half of the year.There was also growth in 2021 compared to the previous year for paper sacks for animal feed.A total of 58 million paper sacks were delivered, with the segment accounting for seven percent of the German market.Here, too, the positive trend continued in the first quarter of 2022:5

Market segments with a lot of potential

Due to the high demands placed on paper sacks by food and animal feed producers, as well as increasing legal requirements, manufacturers are forced to continue working on optimisations.As a result, according to the respondents, these segments are increasingly taking on a pioneering role in the industry, since the innovations bring benefits to other markets.Above all, good hygiene protection, ensuring food safety (both 1) and traceability (1.3) are important to customers.When choosing packaging, they also attach particular importance to purpose-specific barrier layers (2.3), purity of type (2.7) and freedom from dust (2.8).6In the future, the GemPSI members expect further increasing requirements and certifications, which could result in good growth opportunities for the segments in the next five to ten years."We offer a comprehensive range of hygienic packaging with a high level of product protection," says Rockenfeller."With excellent service and information about our service portfolio, we see good opportunities to inspire our customers in the long term."

The content of the industry barometer was compiled using a questionnaire and desk research based on relevant third-party publications.The entire industry barometer, including detailed figures and detailed explanations, is availablefor download here .

Here you will also find further information on the community paper sack industry e.V

 

1 Figures from EUROSAC Statistics 2021, May 2022

2 Figures from EUROSAC Statistics 2021, May 2022

3 Evaluation based on a point scale from 1 "very good" to 5 "very bad"

4 Evaluation based on a point scale from 1 "very good" to 5 "very bad"

5 Figures from EUROSAC Statistics 2021, May 2022

6 Evaluation using a point scale from 1 “extremely important” to 10 “extremely unimportant”

 

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