The shortage of raw materials for papermaking in France is facing an increase in the price of packaging cartons

According to the French TV station BFM, in the United States and Canada, some supermarket chains have announced restrictions on the purchase of several tightly-supplied commodities including toilet paper and packaging cartons. Although France has not yet reached this level, tensions in the paper industry have put the entire paper product market at risk of rising prices, and even some products may be in short supply.

The Essity Group, a leader in the European packaging paper industry, has brands such as Lotus, Okay, and Tena. The group’s French, Belgian, and Italian marketing vice president Arnault Lafleur said in an interview with the “Echo” that production costs have risen by 30% in the past year, despite measures taken to limit its impact, including simplified packaging, etc. , But I don’t know how to avoid a substantial price increase.

Paul-Antoine Lacourt, chief representative of Copacel, a professional union for French pulp, paper, and cardboard production enterprises, also pointed out that since the beginning of this year, the cost of pulp has risen unprecedentedly. In eight months, the price of softwood pulp raw materials has risen by 44%. The price of hardwood pulp raw materials rose by 47%, which is bound to be passed on to consumers.

Moreover, the current French electricity and gas prices continue to soar, which has also pushed up the production costs of enterprises.

Eric Joan, CEO of European office stationery giant Hamelin Group, said that the increase in costs in 2022 will have to be reflected in prices. The price increase of different paper stationery product packaging boxes will be between 15% and 25%. .

The prospect of a variety of paper product packaging prices is already obvious, and consumers are worried that there may be a shortage of packaging cartons, toilet paper, books, magazines, and newspapers. Benoit Duxner, chairman of the French National Federation of Printing and Communication Industries, said, “Some types of paper sometimes have difficulties in supply, but we are not at a deadlock.” Paul-Antoine Lacourt believes that printing Paper has encountered serious difficulties, especially the press and publishing. However, products such as packaging cartons will depend on the company's business operations, and it is not ruled out that there will be delays in delivery.

Before the COVID-19 crisis, many pulp mills were closed due to overproduction and declining structural demand. After the outbreak, especially during the blockade, French companies hoarded a large amount of packaging paper, which once led to a shortage of supply. Due to continued restrictions and the widespread use of telecommuting, the volume of waste paper recycling in Europe has also fallen sharply. If recycled waste paper could be used for production, the tight supply situation could have been eased.

If the price of packaging cartons and other paper products rises, it will cause a further blow to the purchasing power of French households. According to the latest report released by the French National Institute of Statistics and Economics, the consumer price index rose by 0.6% month-on-month and 1.9% year-on-year in August this year.