France Paper Industry Raw Material Shortage Threatens Price Rises for Toilet Paper, Other Products

The French paper industry is currently under severe pressure; shortages of pulp raw materials have pushed production costs up continuously, and some paper product enterprises have sounded the alarm, calling for higher product prices, with daily necessities such as toilet paper possibly rising in price.

According to French BFM TV, in the United States and Canada some supermarket chains have announced purchase limits on several goods in tight supply, including toilet paper. Although France has not yet reached that level, the tense situation in the paper industry puts the entire paper products market at risk of price increases, and even of shortages of some products.

Essity Group, a leading player in the European toilet paper industry, owns brands such as Lotus, Okay and Tena. Arnaud Laville, the group's vice president for the French, Belgian and Italian markets, told Les Echos in an interview that production costs have risen 30% over the past year, and although measures have been taken to limit the impact, including simplifying packaging, he does not know how to avoid substantial price increases. "The shock is so great that we cannot bear it alone; retailers must share this impact."

Paul-Antoine Lacour, general delegate of Copacel, the French professional union of pulp, paper and paperboard manufacturing enterprises, also pointed out that since the start of this year the increase in pulp costs has been unprecedented: within eight months, the price of softwood pulp raw material rose 44% and hardwood pulp raw material rose 47%, which must inevitably be passed on to consumers.

Moreover, electricity and gas prices in France are currently soaring continuously, which has also pushed up enterprises' production costs.

Eric Joan, chief executive of Hamelin Group, a European office stationery giant, said that the cost increases in 2022 will have to be reflected in prices, with rises of between 15% and 25% for different paper stationery products.

The prospect of price increases for many types of paper products is already obvious, and consumers fear possible shortages of toilet paper, books, magazines and newspapers. Benoît Duxenne, chairman of the French National Union of Printing and Communication Industries, said, "For certain types of paper there are sometimes supply difficulties, but we are not at a deadlock." Paul-Antoine Lacour believes that printing paper is in serious difficulty, with the press and publishing sectors especially affected, but that products such as toilet paper will depend on companies' commercial operations, and delivery delays cannot be ruled out.

Before the COVID-19 crisis, many pulp mills were closed because of overproduction and structurally declining demand. After the pandemic broke out, especially during lockdowns, French consumers stockpiled large quantities of toilet paper, which at one point caused supply shortages. Because restrictions continued and remote working became widespread, waste paper recovery in Europe also fell sharply. If recycled waste paper could be used for production, the tense supply situation could have been eased.

If the prices of toilet paper and other paper products rise, it will further hit the purchasing power of French households. According to the latest report released by the French National Institute of Statistics and Economic Studies, in August this year the consumer price index rose 0.6% month on month and 1.9% year on year.

——This article is reprinted from China Packaging Network (pack.cn). Original link: http://news.pack.cn/show-378362.html