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Pulp Manufacturing in Germany - Market Research Report (2014-2029)

Robert Maier Robert Maier Frankfurt, Germany Last Updated: September 2024 WZ C17.11DE

Revenue

€1.3bn

2024

€1.3bn

Past 5-Year Growth

Profit

€XXX.Xm

Employees

1,401

Businesses

3

Wages

€XX.Xm

Pulp Manufacturing in Germany industry analysis

The last five years have been an ambivalent period for the three pulp manufacturers producing in Germany. The economic upheaval caused by the coronavirus pandemic and the Russian invasion of Ukraine meant that demand for pulp fluctuated greatly in individual years. In addition, the ongoing changes in the paper industry, by far the most important customer for pulp products, posed a challenge. Declines in supplies to graphic paper manufacturers were only partially offset by growth in other segments such as packaging and tissue paper production. Industry turnover has therefore fallen by an average of 0.4% per year over the past five years.In the current year, industry sales are likely to fall despite the recovery in demand from the paper industry following the weak year 2023. This development is primarily due to the closure of pulp production in Stockstadt, Lower Franconia, by the Sappi Group, one of the most important domestic producers of graphic paper. The pulp industry is expected to suffer a 6% decline in turnover in 2024 compared to the previous year and generate industry turnover of 1.3 billion euros.IBISWorld expects turnover in the pulp industry to grow slightly in the coming years. The majority of players are well positioned in terms of industry strategy. Revenue development over the next five years is likely to be stimulated primarily by the continued growth in demand for pulp for packaging products and hygiene articles, both in Germany and globally. Industry turnover is expected to increase by 1.6% per year until 2029 and reach 1.4 billion euros in 2029.

Trends and Insights

  • Paper mills are finding it increasingly difficult to produce graphic paper at acceptable conditions because newspaper and magazine publisher circulations are in sharp decline. As a result, several paper production lines in this sector have been scaled back or dismantled in recent years.
  • Power pulp gives paper products a high level of strength and is therefore the most commonly produced pulp. The sulphate process can achieve paper strengths that are not possible with recycled paper pulp or virgin fibres from the sulphite process, at the cost of poorer bleachability of the pulp.
  • The two federal states in the Süd region have the most companies in the sector. The distribution of companies in the sector has essentially developed from earlier acquisitions of pulp and paper production sites by international paper industry groups.
  • Internal competition in the industry is at a moderate level. This is due to the fact that the industry participants are companies that have specialised in supplying distinct markets.

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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has declined at a CAGR of 0.4 % over the past five years, to reach an estimated €1.3bn in 2024.

Trends and Insights

The production of pulp is an important upstream process in paper production

  • Pulp production is closely linked to the paper manufacturing industry. The paper industry in Germany is made up of around 130 production sites. Of these, however, only four plants specialise in the production of pulp. The majority of these pulp mills work towards the integrated production process of a paper manufacturer at the same site.
  • Additional trends and insights available with purchase
Pulp Manufacturing in Germany
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

Pulp products are likely to remain extremely relevant for everyday life despite the ongoing digitalisation

  • Despite the increasing digital penetration of many areas of life, paper, cardboard and pulp will remain relevant products in everyday life in the future. In terms of per capita consumption of paper and cardboard products, Germany currently ranks third in the world behind the USA and Japan with around 220 kilograms per year.

Biggest companies in the Pulp Manufacturing in Germany

Company
Market Share (%)
2024
Revenue (€m)
2024
Mercer International Inc.
823.0
Essity AB
251.0
Sappi Ltd.
238.0

To view the market share and analysis for all 3 top companies in this industry, view purchase options.

Products & Services Segmentation

Pulp Manufacturing in Germany
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Kraft pulp, Sulphite pulp and By-products. Kraft pulp is the largest segment of the Pulp Manufacturing in Germany.

Trends and Insights

Kraft pulp gives paper products a high degree of strength and is therefore the most commonly produced pulp

  • Kraft pulp is produced using the sulphate process, the most common international process for the production of pulp. Over 80 % of the pulp consumed in Germany and the vast majority of freely traded market pulp is produced using the sulphate process.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

The wood and pulp production industry comprises the extraction of bleached or unbleached fibres from wood or other cellulose-containing natural raw materials through chemical or semi-chemical processing. These fibres are primarily used for the production of paper, cardboard and paperboard. The production of mechanical pulp and the implementation of recycling processes such as the removal of printing inks are also part of the industry's activities.

What's included in this industry?

Kraft pulpSulphite pulpBy-products

Companies

Mercer International Inc.Essity ABSappi Ltd.

Purchase this report to view all 3 major companies in this industry.

Related Terms

MARKET CELLULARCOATED PAPERUNCOATED PAPERWOOD MATERIALCALAMITYSULPHITE PULPFUEL CELL MATERIALLIGNIN

Industry Code

WZ 2008

WZ 17.11 - Pulp Manufacturing in Germany

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

Paper mills are finding it increasingly difficult to produce graphic paper at acceptable conditions because newspaper and magazine publisher circulations are in sharp decline....

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Power pulp gives paper products a high level of strength and is therefore the most commonly produced pulp. The sulphate process can achieve paper strengths that are not possi...

In this chapter

  • Products & Services
  • Major Markets
  • International Trade

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level
  • Total imports, level and trend
  • Total exports, level and trend
  • Trade Balance

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024
  • International trade, including imports by country and exports by country

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services
  • Recent trends in import and export volumes, country of origin or destination, and expected future trends

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

The two federal states in the Süd region have the most companies in the sector. The distribution of companies in the sector has essentially developed from earlier acquisition...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each region in 2024
  • Number and share of revenue each region accounts for in 2024
  • Number and share of wages each region accounts for in 2024
  • Number and share of employees in each region in 2024

Detailed analysis

  • Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

Internal competition in the industry is at a moderate level. This is due to the fact that the industry participants are companies that have specialised in supplying distinct ...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2019-2024
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

Mercer International operates two pulp mills in Germany, Mercer Rosenthal GmbH and Mercer Stendal GmbH. The Mercer Stendal mill is the largest kraft pulp mill in Europe.

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2020 through 2024
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2024
  • Overview of Mercer International Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Essity AB's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Sappi Ltd.'s performance by revenue, market share and profit margin from 2018 through 2024

Detailed analysis

  • Description and key data for Mercer International Inc., and factors influencing its performance in the industry
  • Description and key data for Essity AB, and factors influencing its performance in the industry
  • Description and key data for Sappi Ltd., and factors influencing its performance in the industry

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

The production of pulp is an energy and water-intensive process that is subject to strict environmental regulations. The basic legal framework for the operation of pulp produ...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2014-2029) 
  • Assistance historical data and forecast (2014-2029) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

The very high profit margin in direct comparison to the paper industry is due to the fact that the industry participants are all very efficiently operating large companies.In ...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Investment vs. share of economy

Data tables

  • Cash Flow & Debt Service Ratios (2014-2029)
  • Revenue per Employee (2014-2029)
  • Revenue per Enterprise (2014-2029)
  • Employees per Establishment (2014-2029)
  • Employees per Enterprise (2014-2029)
  • Average Wage (2014-2029)
  • Wages/Revenue (2014-2029)
  • Establishments per Enterprise (2014-2029)
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Pulp Manufacturing industry in Germany in 2024?

The market size of the Pulp Manufacturing industry in Germany is €1.3bn in 2024.

How many businesses are there in the Pulp Manufacturing in Germany industry in 2024?

There are 3 businesses in the Pulp Manufacturing industry in Germany, which has declined at a CAGR of 0.0 % between 2019 and 2024.

Has the Pulp Manufacturing industry in Germany grown or declined over the past 5 years?

The market size of the Pulp Manufacturing industry in Germany has been declining at a CAGR of 0.4 % between 2019 and 2024.

What is the forecast growth of the Pulp Manufacturing industry in Germany over the next 5 years?

Over the next five years, the Pulp Manufacturing industry in Germany is expected to grow.

What are the biggest companies in the Pulp Manufacturing market in Germany?

The biggest companies operating in the Pulp Manufacturing market in Germany are Mercer International Inc., Essity AB and Sappi Ltd.

What does the Pulp Manufacturing in Germany include?

Kraft pulp and Sulphite pulp are part of the Pulp Manufacturing industry.

Which companies have the highest market share in the Pulp Manufacturing in Germany?

The company holding the most market share in Germany is Mercer International Inc..

How competitive is the Pulp Manufacturing industry in Germany?

The level of competition is high and steady in the Pulp Manufacturing industry in Germany.

Related Industries

Widen your competitive advantage with related industries

Competitors

  • There are no industries to display.

Complementors

  • Paper & Paperboard Manufacturing in Germany
  • Sanitary Product Manufacturing in Germany

International industries

  • Global Paper & Pulp Mills
  • Wood Pulp Mills in the US
  • Wood Pulp Mills in Canada
  • Pulp, Paper and Paperboard Manufacturing in Australia
  • Pulp, Paper and Paperboard Manufacturing in New Zealand

View all industries in Germany

Methodology

How are IBISWorld reports created?

IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in Germany include:

  • German Federal Statistics Office (Destatis)
  • European Statistics Office (Eurostat)
  • United Nations Comtrade

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

Learn more about our methodology and data sourcing on the Help Center.