The economic footprint of the paper industry as well as the prospects and the main challenges for its further development are highlighted in the study "The Paper Industry in Greece: Contribution to the Greek Economy, Challenges, and Growth Prospects,"  prepared by the Foundation for Economic & Industrial Research (IOBE) for the Association of Paper Industries of Greece (E.B.I.H.E.).

IOBE Director General, Mr. Nikos Vettas, stressed the importance of analyzing dynamic sectors of the economy, detailing their data and assessing their footprint on the wider economy, and future prospects and challenges. He also noted that in order to achieve strong growth rates and wage increases in the medium term, a gradual shift of physical and human resources to sectors with high productivity and outward-looking potential is necessary.

MAIN POINTS

• The production activity of the paper industry has been significantly boosted after 2020, partly due to the increase in e-commerce and the resulting packaging needs. The industry's turnover is estimated to have reached €2.13 billion in 2023 from €1.52 billion in 2020, reflecting the increase in production volumes, but also in prices due to higher production costs.
• The domestic paper industry showed a high degree of resilience during the economic crisis, the pandemic and the energy crisis, with its Gross Value Added (GVA) reaching €426 million in 2022, contributing 2.2% to the corresponding figure for Manufacturing, up from 1.8% in 2012.
• Investment intensity in the Paper Industry is at a higher level compared to the average for Manufacturing. Investments in the Paper Industry reached €107.4 million in 2022, representing 24% of the industry's GVA, compared to a corresponding share of 15% for the whole domestic Manufacturing sector.
• One thing that makes the domestic paper industry stand out is that it recycles paper packaging waste and makes cardboard from the recycled cardboard that is collected in the country. This makes a big difference in terms of sustainable development, the circular economy model, reaching a higher national percentage of recycled paper packaging waste than the EU-27 average, and meeting the policy goals set for 2025 and 2030.
• The domestic paper industry has remarkable export activity. Exports of paper products amounted to €800 million in 2023, an increase of 9.4% year-on-year, in contrast to imports, the value of which reached €1.64 billion, up from €1.84 billion a year earlier. More broadly in the sector, significant export activity was also recorded in recovered waste paper from the recycling system, which is a raw material for the production of paper and cardboard.
• Over the last four years there has been an upward trend in the prices of energy goods, which has put severe pressure on the domestic paper industry. The increase in energy prices has led to an increase in energy costs in the Paper Industry, which are estimated to reach almost €170 million in 2022 from €83 million in 2021. Over time, energy expenditure in total expenditure for the Paper Industry is higher than in Manufacturing.
• The paper industry, due to its capacity and resilience, is proving attractive to foreign private investment. The existence of factories and businesses in the sector that are subsidiaries of foreign groups serves as proof of this.