Alongside Germany, Italy and Spain, France is one of Europe's largest packaging markets. It is driven primarily by the food and beverage industry and export-oriented premium segments such as cosmetics, perfumery and wine. However, these sectors in particular were affected by general consumer restraint and uncertain export prospects in 2024. This has had a noticeable impact on demand for packaging.
The French packaging industry ended 2024 with a significant decline. According to calculations by AS Études based on data from the National Institute of Statistics and Economic Studies (INSEE), the market shrank by around four per cent compared to the previous year, reports Usine Nouvell. In the summer, a slump of between eight and ten per cent had been predicted – a scenario that ultimately did not materialise. Nevertheless, it is clear that after turbulent years marked by pandemic-related special effects, supply chain problems and high inflation, the industry is now in a phase of consolidation.
The main drivers of the decline were consumer reluctance to buy as a result of higher prices and the reduction of inventories. Many companies had already stocked up on paper, cardboard, wood and plastics in 2022 to cushion the impact of impending shortages. These stocks were gradually depleted in 2023 and 2024, resulting in significantly lower demand for packaging. This was compounded by political and social uncertainties: the war in Ukraine, the Middle East conflict and domestic political tensions in France itself. These factors dampened both investment willingness and consumption. Regulatory factors also played a role. With the European Packaging and Packaging Waste Regulation (PPWR) adopted at the end of 2024, manufacturers face new obligations in terms of recyclability, reuse quotas and material reduction. Many companies are currently waiting to see how these requirements will specifically affect their investment strategies.
According to Citeo, simplifying the sorting process (Geste de tri) has made it possible for 98% of the population in France to separate packaging and paper. Citeo organises and finances the collection, sorting, reuse and recycling of packaging and graphic paper in France on behalf of the public sector. The company reports that an annual average of 72 kilograms per capita was collected separately in 2023: approximately 58 kg of packaging and 14 kg of graphic paper. However, the actual quantities vary greatly depending on the region and area.
The recycling rate for all household packaging is currently around 67 percent. A total of around 4 million tonnes of packaging material has been recycled, avoiding around 2.3 million tonnes of CO₂ emissions. There are significant differences between materials: steel and glass achieve recycling rates of around 86%, paper and cardboard around 69 percent, aluminium around 37 percent and plastics significantly lower at around 27 percent. Almost half of all plastic packaging is used in the French agricultural and food industry. This sector is therefore the most important consumer and at the same time particularly affected by regulatory pressure.
Citeo attributes the approximately 3 percent increase in recycled packaging volumes compared to the previous year to particularly good market and sorting performance for paper and cardboard, as well as a 15 percent increase in the volume of recycled plastics – aided by the almost complete implementation of simplified sorting regulations and the expansion of the plastics recycling infrastructure.
After a difficult year, the French packaging industry is now faced with the challenge of no longer postponing investments in sustainable materials and recyclability. Whether the next few years will bring the hoped-for upturn depends largely on consumer impulses and the concrete effects of the new EU regulations.
Author: Alexander Stark
