Experts predict that the European packaging market will grow from around 153 billion euros in 2024 to an impressive 186 billion euros by 2029. This corresponds to a solid compound annual growth rate (CAGR) of 4.07%. While the European packaging market as a whole is growing, individual countries are facing similar challenges, such as the transition to more sustainable packaging materials and the fulifilment of recycling targets — not only, but mainly driven by the targets demanded by EU regulations. At the same time, however, there are also country-specific challenges and innovative solutions that differ depending on market requirements and framework conditions. In the following, we take a closer look at the special features of the markets in the various European countries.
Austria
The Austrian packaging industry is characterised by a strong international focus and innovative approaches to sustainability, with ambitious recycling targets for plastic packaging and an established tradition of recycling glass and paper. The industry, consisting of around 120 manufacturers, is increasingly focussing on environmentally friendly solutions such as rePET and the use of recycled materials. Austria is particularly successful in the area of pulp and paper packaging, which accounts for a significant proportion of production value.
Switzerland
A strong mix of multinational and specialised companies forms the backbone of the Swiss packaging industry. Despite rising raw material and energy costs and an increasing shortage of skilled labour, the industry is robust, with many companies expanding their capacities and training new employees. Proximity to the EU and close international trade relations are an advantage, although Switzerland does not have a comprehensive packaging ordinance like its neighbouring countries. Initiatives to promote recycling and the circular economy, such as a standardised collection bag and a planned pricing system, aim to achieve sustainability targets by 2030.
Spain
The Spanish packaging industry has also been undergoing a major shift towards greater sustainability in recent years, driven by new recycling laws and a focus on waste separation and reuse. With over 3,000 companies and 110,000 employees, the industry makes a significant contribution to the Spanish economy and is showing particular growth in the production of paper, cardboard and plastic packaging. Catalonia is the centre of the industry, followed by regions such as Valencia and Madrid. Important customer sectors are the food, automotive and pharmaceutical industries, which offer additional growth opportunities due to increasing demand for sustainable packaging and investment from abroad.
Denmark
Denmark has made remarkable progress in the sustainable packaging industry, already achieving a 65% recycling rate for packaging waste in 2021, surpassing the target set for 2025. Despite challenges, particularly in plastic recycling, the country has increased its focus on recycling and sustainable materials, with an increase in the use of fibre and glass packaging. The popularity of online shopping has increased demand for shipping materials, while efficient return and deposit schemes encourage high recycling rates.
Great Britain
The market value of the UK packaging industry is forecast to increase from $58.27 billion in 2023 to $65.18 billion in 2028. The food segment and demand for lightweight, flexible packaging in particular are driving growth. Despite this positive trend, the industry faces regulatory challenges, such as the tax on plastic packaging introduced in 2022 and the Packaging Waste Regulation implemented in 2023, which requires manufacturers to report on their packaging volumes. The UK recycling rate for packaging waste is stagnating at 6%, with significant room for improvement, particularly for plastic waste.
France
With a turnover of between 30 and 35 billion euros and around 200,000 employees, French packaging companies form an important pillar of the economy. The strongest demand for packaging comes from the food and beverage sector, which accounted for the largest share of packaging material consumption in 2021. The trend towards lighter and more environmentally friendly packaging, supported by political requirements such as the ban on single-use plastics from 2040 and the promotion of recycling and the circular economy, is increasingly shaping the industry.
The Netherlands
Despite familiar hurdles such as changing market conditions and rising raw material prices, the Dutch packaging market is also doing well. With around 330 companies and a turnover of 6.8 billion euros in 2020, the industry has seen solid growth in recent years, particularly in paper and cardboard packaging. Although the Netherlands lags behind other countries such as France and Spain in terms of regulation, the country has achieved a high recycling rate of 88 %. The government and industry are aiming to use only fossil-free and recyclable packaging by 2050, supported by initiatives such as extended producer responsibility and the deposit system.
Poland
The Polish packaging industry has established itself as a major player in the European market, with impressive growth of almost 20% in 2022. Despite this positive development, the industry faces challenges such as high energy and raw material costs, uncertainties caused by the war in Ukraine and stagnating investment activity. Poland is a leader in the export of wooden packaging and ranks third in the EU for exports of paper and cardboard packaging. However, the country lags far behind EU targets in terms of recycling rates and must prepare for stricter environmental regulations and better waste management.
Belgium
Belgium has established itself as a leader in packaging recycling in Europe through technological innovation and the early introduction of extended producer responsibility, with a recycling rate of 79.2% - the highest in the EU. The progress made in the collection and recycling of plastic packaging is particularly noteworthy. Despite its successes, Belgium takes a critical view of the plans for a standardised EU packaging regulation, as this could compromise national characteristics and high standards. Belgium could therefore serve as a model for the circular economy in Europe.
Finland, Sweden and Norway
The Scandinavian packaging industry relies heavily on fibre-based materials and wood, reflecting its close ties to the regional forestry industry and the region's sustainability efforts. Sweden, Finland and Norway are characterised by high recycling rates and innovative systems for recycling, with Sweden standing out with strict producer responsibility laws and Finland with a strong recycling infrastructure for paper and cardboard. Norway is considered a pioneer in the recycling of beverage packaging thanks to its successful deposit system, which has already achieved a recycling rate of 97%.
Italy
Strong domestic demand and booming online trade have given the Italian packaging industry growth of 7 % in 2021. The country is a leading manufacturer of packaging materials and machinery, with a particular focus on glass, metal, cellulose and flexible packaging. Mechanical engineering, especially for packaging machines, remains a solid pillar of the economy, although exports declined slightly in 2022. In view of rising energy prices and geopolitical uncertainties, however, the outlook has clouded over.
Turkey
The Turkish packaging industry is making the most of its geographical location to expand its exports, particularly to Europe, and strengthen its market presence. In 2022, the industry exported packaging materials worth 6.8 billion euros, a growth of 15% compared to the previous year. Despite high inflation, the Turkish economy grew by 4.5% in 2023, which also benefited the packaging industry. The industry is aiming for ambitious goals, including increasing its export volume to 18 billion euros by 2030. In addition to Europe, it is aiming to increase its presence in the USA and is focusing on technological developments in order to further consolidate its global market position.
