27 Apr. 2026: Seven paper mills have closed in France since January 2024, out of a total of 81 industrial sites. Several companies are currently experiencing financial difficulties, while a pulp producer operating two large mills is in conciliation proceedings.
The closures come amid a challenging economic environment. In 2025, French paper and board production remained broadly stable at around 6.5 million tonnes, down 0.1% from 2024. However, industry revenue declined by approximately 3%, reflecting lower selling prices, high production costs and relatively low capacity utilisation.
Market trends vary by segment. Packaging paper and board production decreased by 1.2% in 2025, while graphic paper continued its structural decline, falling by 2%. In contrast, tissue paper production increased by 7.5%, supported in part by the start-up of new machines in France.
Beyond short-term market conditions, the sector is facing sustained structural pressures. COPACEL points to intensified international competition, driven by overcapacity in certain segments and increased imports of lower-priced products, particularly from Asia. U.S. tariffs have reportedly redirected paper volumes toward Europe, adding pressure on regional markets.
Production costs remain a key concern for manufacturers. The paper industry, which is highly energy-intensive, continues to be exposed to volatility in gas and electricity prices. The end of France’s ARENH regulated electricity mechanism on December 31, 2025 is expected to further increase exposure to market price fluctuations. At the same time, fibre raw material costs particularly wood remain elevated despite weaker activity in several segments.
In this context, COPACEL is calling for measures to strengthen the competitiveness of the French paper industry. Proposed actions include reinforcing trade defence instruments at the European level, reducing production-related taxes and simplifying the regulatory framework.
Despite these challenges, the association notes that paper products continue to play a key role in the economy. The renewable nature of fibre and high recycling rates estimated at 87% for paper and board position the sector at the intersection of the bioeconomy and the circular economy.
Paper Advance Editorial Team, https://www.paperadvance.com/