27/08/2025
The EUDR (European Union Deforestation Regulation) regulation will lead to significant changes in the paper packaging industry and will deeply affect the sustainability, supply chain transparency and compliance processes of the industry.
Possible effects on the paper packaging industry:
1. Combating Deforestation and Responsible Supply Chain
- The EUDR prohibits products linked to deforestation from entering the EU market. Paper packaging manufacturers have to prove that their raw materials (especially pulp/pulp) are produced without deforestation.
- Supplier auditing will become critical: Details such as the origin of pulp or recycled materials, production date and coordinates must be traceable.
2. Certification and Compliance Costs
- Certifications such as FSC (Forest Stewardship Council) or PEFC will become even more important. Companies may have to incur additional costs to bring their supply chains up to these standards.
- Small and medium-sized businesses may find it difficult to establish documentation and traceability systems.
3. The Importance of Recycling Will Increase
- The EUDR will encourage the use of recycled paper because these materials do not pose a risk of deforestation.
- Packaging manufacturers can turn to increasing recycling rates and raising consumer awareness.
4. Operational and Administrative Obligations
- Companies should prepare Due Diligence reports, analyze the risks in their supply chains and report to the EU.
- Data such as geographical coordinates, origin of the product will need to be recorded. This could increase investments in digital traceability systems (such as blockchain).
5. Challenges and Opportunities for Non-EU Producers
- Paper packaging manufacturers in countries such as Turkey, which exports to the EU, may lose markets if they do not comply with the EUDR.
- However, companies that are early adopters can gain a competitive advantage in the EU market and stand out as "green suppliers".
6. New Market Dynamics
- As the demand for sustainable packaging increases, alternative fibre sources (h**p, bamboo, agricultural waste) and bio-based materials may gain importance.
- Customers (especially EU brands) will require EUDR compliance from their suppliers.
Result:
EUDR will transform the paper packaging industry by mandating sustainable production. Companies that fail to comply will be left out of the market, while those with environmentally friendly and transparent supply chains will stay ahead of the competition. Companies need to invest in traceability technologies, certified raw materials, and strategic collaborations to prepare for this regulation.
