Spain overtakes France as the fifth largest European paper producer amid rising Asian imports

The Spanish pulp and paper sector is currently navigating a statistical paradox that perfectly captures the complex industrial climate across the European Union. According to the latest annual balance released by Aspapel, Spain closed out 2025 by permanently displacing France to become Europe’s fifth-largest producer of paper and cardboard. However, this historic milestone was achieved during an operational year characterized by a widespread manufacturing contraction. Total sector revenue dropped by 2.7%, settling at €5.092 billion, which proves that climbing the European rankings today is far more about comparative resilience than experiencing rapid expansion.

Spain's 72 active domestic mills—comprising 62 paper and cardboard facilities, five dedicated cellulose plants, and five integrated sites—manufactured an aggregate of 6.3 million tons of paper and cardboard. This volume represents a tangible 3.9% decline compared to the consolidated data from 2024. Meanwhile, cellulose production followed a similar downward trajectory, dropping 4.5% to 1.6 million tons, although the segment comfortably retained its own fifth-place standing in Europe. Despite being negative in absolute terms, these figures cushioned the commercial blow much more effectively than the broader continental average. This relative stability enabled the Spanish sorpasso, leaving only Germany, Sweden, Italy, and Finland holding superior tonnage capacities.

Geopolitical shifts squeeze operating margins

The root cause of this manufacturing contraction lies in a profound and aggressive realignment of global trade routes. Tariffs imposed by the United States throughout 2025 triggered a predictable yet devastating domino effect, diverting massive volumes of paper—originally intended for North America—directly into the European market. Compounding this external pressure was a fierce surge in Asian imports. Aggressive pricing strategies caused the Asian market share within Spanish paper imports to jump from 29.3% in 2024 to an alarming 33.5% by the end of last year.

Manuel Domínguez, general director of Aspapel, outlined the stark reality of this competitive asymmetry. The domestic market is increasingly absorbing imported materials in critical segments like packaging and graphic paper. Conversely, national exports—which fell by 5.9% to a mere 2.58 million tons—are struggling to maintain their traditional momentum abroad. The structural gap in energy costs compared to non-EU competitors remains the heaviest anchor weighing on the industry's profitability.

Investment in modernization amidst uncertainty

Despite the drop in overall consumption and billing, the main players in the Spanish paper sector actively avoided retreating into defensive cost-cutting strategies. Instead, 2025 stood out for a notable uptick in capital expenditure (CAPEX) explicitly directed toward the modernization of legacy production lines. Paper mills and corrugated cardboard converters accelerated the deployment of automated process controls and energy efficiency upgrades, striving to squeeze every possible euro out of tight gross margins. This technical commitment is widely viewed as the only viable path to offset rising production costs and prep facilities for the anticipated demand rebound forecasted for 2027 and beyond.

Circularity serves as an industrial shield

Where the industry shows absolutely zero signs of fatigue is in its world-class sustainability metrics and workforce retention. The sector fully maintained its highly skilled direct workforce of 17,581 professionals while sustaining nearly 88,000 indirect roles, functioning as a crucial socioeconomic anchor in regions with deep-rooted industrial traditions.

On the environmental front, Spanish mills processed over 5 million tons of recovered paper in 2025. This massive logistical and industrial effort secured a remarkable 81% recycling rate and pushed the national collection rate to 74.1%, the highest benchmark recorded in four years. It is precisely this robust circular economy model, anchored in local bioeconomy principles, that allows the Iberian industry to firmly differentiate its output from low-cost imported volumes.

The operational resilience demonstrated by Spanish manufacturers highlights a commendable industrial maturity, successfully sustaining capital expenditure and workforce stability in an environment where soaring energy costs and an influx of imports would decimate less structured sectors. As we navigate the stringent efficiency demands of 2026, will sheer excellence in circular economy metrics be enough to defend European market share against the relentless advance of Asian mega-producers? Follow The Paper for daily news, market signals and key updates from the global paper, corrugated and packaging industry. — Sigue toda la actualidad del sector en www.thepaper.ai