The swift rise in digital content popularity has severely reduced demand for traditional print advertising, pushing many businesses towards digital campaigns over print. This shift negatively impacts the printing industry, with demand for printed labels, tags and manuals shrinking. Revenue is forecast to decrease at a compound annual rate of 4.4% over the five years through 2024 to €87.4 billion, including an estimated drop of 5% in 2024, while the average profit margin is expected to be 9.2%.

Despite positive developments in the digital printing market, high inflation has hit income. Although businesses in Germany favour shorter print runs for cost-effectiveness and flexibility, these pressures have limited printing services' ability to invest in expensive digital printing equipment. Profit has suffered from overcapacity in the industry, which has led to intense pricing pressure. However, there's a silver lining – the surge of e-commerce activity and online shopping, especially in the UK and Netherlands, with 95% and 92% of their internet users shopping online, are leading markets to packaging and labelling print services.

Revenue is forecast to climb at a compound annual rate of 1.3% over the five years through 2029 to €93 billion. Surging e-commerce activity and online shopping, especially in the UK and Netherlands, presents growth opportunities. Market trends highlight a surge in manufacturing growth in Poland and Turkey, increasing demand for printing services, especially in product packaging and labelling. Despite this, other print services will continue to decline as paper products shift to digital formats. In response, printing companies, including major players like Bertelsmann, will continue embracing digitalisation, meeting trends for on-demand solutions.

The Paper and Paperboard Product Manufacturing industry has long been a cornerstone of Europe’s manufacturing landscape, driven by historically strong demand for printed materials, packaging and stationery. However, recent trends show a significant shift towards digital document management. European consumers and businesses well on their way to shifting to electronic alternatives for documentation, communication and billing, favouring efficiency and environmental considerations over traditional paper-based practices. The surge in secure digital file storage and the legal recognition of electronic documents, notably in France, are cutting the reliance on physical paper products. Revenue is forecast to drop at a compound annual rate of 4.2% over the five years through 2024 to €61.6 billion, including estimated drop of 3.2% in 2024. It’s not all doom and gloom, though – luxury and bespoke stationery items remain in high demand. Retailers across Europe report rising sales in high-end notebooks and crafted writing materials, with people exhibit a growing appreciation for the tangibility and quality of these premium products. Brands like Montblanc and Hermes are capitalising on this trend, offering luxurious collections that cater to customers seeking exclusivity and artisanal charm. Revenue is slated to swell at a compound annual rate of 2.8% over the five years through 2029 to €70.7 billion. Paper and product manufacturers will come up two key challenges: adapting to the accelerating embrace of IT and telecommunication technologies and responding to ever-growing environmental concerns. Digitalisation in retail and education is set to further diminish paper usage as they continue their transition to digital receipts and tech-integrated learning environments, respectively. However, sustainable solutions and the burgeoning desire for environmentally responsible products will open up some growth opportunities. To keep pace, manufacturers will need to align their strategies with these trends, prioritising sustainability while exploring niche markets for luxury paper goods.