The European packaging market remains a market of opportunities

The European packaging market remains a market with diverse opportunities despite current challenges. This is the conclusion of a market observation conducted by PackSynergy. The network of medium-sized packaging wholesalers from 24 European countries has good insights into the situation, challenges and developments of the European packaging market and has summarized the most important findings from Germany, Benelux, Denmark, UK and Spain in its report.

What is the situation in the packaging market? What challenges do the players have to contend with? And what role do collaboration and knowledge exchange play? As it turns out, while there are country-specific particularities and characteristics, the fundamental aspects have cross-border effects. According to PackSynergy CEO Thomas A. Baur, it is undisputed that the network concept has arrived in the packaging industry. "The strength of medium-sized wholesale trade can quickly generate and utilize opportunities through its flexibility and customer orientation, even in difficult times. This applies particularly when companies network in an alliance without giving up their independence," says Baur.

Market, customers, competition

Across all national borders, the member companies look at a market that has been disruptively influenced in recent years. While COVID created rising demand for packaging and associated services, problems in the supply chain and rising material and energy prices as a result of the Ukraine war led to growing expenses and higher costs. At the same time, however, prices could also be raised.

This extraordinary period is now followed by a situation in which the general economic slowdown is leading to declining demand and falling prices. Economic conditions and energy prices have different country-specific effects. The negative effects are particularly strong in Germany. Nevertheless, Lisa Horna, authorised signatory at HORNA GmbH Verpackungen, emphasizes "that there is always a market of opportunities for our industry, even when many others in Germany are not doing well. We have a product that is needed in all areas, which means there are always possibilities and opportunities for new customers and business fields.

"Regarding customer behavior, Andrew Grant, Group Managing Director of British Samuel Grant Packaging, notes that "customers have more choice again. More material is available and there are more options. So we are under strong competitive pressure, as customers are increasingly willing to switch to achieve lower prices. However, the willingness to accept new suppliers works in both directions and also opens up opportunities." In addition to the increased need for consulting, especially in the area of sustainability, it has a positive effect that many companies are focusing more strongly on their core business again due to cost pressure and outsourcing secondary products and processes to service providers.

For Spain, Esteve Amat, CEO of Embamat, reports on a market subject to strategic transformations and characterized by a strongly increasing competitive situation, very high raw material prices and very low planning security.

Competition from online platforms causes little concern for wholesalers. Most have their own online shops. At the same time, the focus in online business is usually on price-sensitive standard solutions. "But we offer complete customized solutions and select the best products to solve the task in the most effective way," says Grant. Thomas Horna, Managing Director of HORNA GmbH Verpackungen, adds that they are not just pure traders, but also develop individual packaging "that helps to make shipping processes efficient, cost-saving and sustainable. We are also available for follow-up questions and change requests regarding packaging solutions, spare parts or repairs." This distinguishes PackSynergy partners from most (online) traders.

Sustainability and regulation

All member companies of the alliance record increasing demand for sustainable solutions in their markets. This trend is both opportunity and risk. The opportunity lies in customers' desire for new solutions that traders have developed in recent years. Increased costs justify higher prices. Risks exist due to strong cost pressure. Because when price becomes the prevailing argument again, investments made cannot be recouped.

Another challenge arises from incomplete and unclear regulations. "Information is often very scarce. There is a lot of speculation and much remains unclear for a long time. Once the information situation is clear and regulation is adopted, it often has to happen very quickly," says Lisa Horna. Esteve Amat adds that "regulations like PPWR and EUDR require strategic adaptation in the product portfolio, new designs and compliant processes, which we can master efficiently and flexibly as medium-sized companies, but can also represent a significant cost burden."

Country-specifically, the design of own regulations is added to EU requirements. Max Dalsgaard, CEO and owner of Danish KD Emballage A/S, sees difficulties from the upcoming EPR regulation for packaging, which has been in effect in Denmark since October 1, 2025.

A positive effect of regulatory requirements is the growing customer demand for consulting. The permanently increasing requirements lead to complexity that creates additional need for specialists and know-how among PackSynergy members. Since complexity also exists on the customer side, traders can offer new services and consulting there with their expertise. This is also why Dalsgaard notes: "In the past, many of us were simple suppliers. Today we are important partners for our customers. This requires realignment in many aspects, but also enables stronger focus on growth."

Labourmarket, digitalisation, logistics

All surveyed PackSynergy members struggle with rising wage costs. Specifically, the increase in minimum wage has had a strongly burdensome effect on costs for manual work and work at the lower end of the pay band, not only in Germany but also in Great Britain. Additionally, there is a shortage of technical personnel and difficulties finding qualified employees, as Pieter Groeneveld, CEO of Dutch Contimeta, reports. In response, wholesalers are investing more heavily in training and continuing education.

One way to absorb rising wage costs is consistent digitalisation in logistics and handling, where a lot of manual work typically occurs. "Process optimization is factually our daily business. We have only very few areas where we are not fully digital," reports Thomas Horna. Pieter Groeneveld sees the "tendency for customers to prefer sourcing their goods locally to reduce logistics costs and be more sustainable. In this context, it's important to have sufficient inventory to be able to deliver quickly. Logistics efficiency has a considerable impact on the overall cost structure."

For the alliance's member companies, the "Virtual Warehouse" pays off here. This allows inventory to be shared between different locations. "This is particularly useful for top products to ensure availability and shorten delivery times. Cooperation between locations and partners is a decisive factor for increasing efficiency," says Groeneveld.

Network and knowledge transfer

PackSynergy members see a significant advantage of the corporate network in the exchange of know-how and expertise. "We are all innovative in different ways to find solutions for the same problem. Everyone sets their own priorities and finds their own solutions that they can then share. It's also advantageous with customers to be part of the network, because the customer then sees how much expertise and know-how we can deploy for their concerns," says Grant.

Lisa Horna emphasizes regarding the complexity of regulations: "Especially with unclear information situations, a network with many professionals is particularly valuable. The exchange enables new impulses and information that we can pass on to our employees and customers. That's a huge advantage."

Dalsgaard and Groeneveld also emphasize that membership in an industry network is crucial to remain competitive. Networks offer the opportunity to learn from best practices and exchange information about current trends and developments. Through cooperation with partners, synergies can be utilized and joint projects realized. "Joint work in the network allows us to bundle strengths and deploy them efficiently, responsibly and future-securely," summarizes Esteve Amat.