Overview of the Global Pulp and Paper Market in Q2 2025

As the global pulp and paper sector moves through 2025, one thing has become clear: resilience isn’t just a buzzword—it’s a survival strategy.

In our Q2 2025 Regional Report, ResourceWise analysts unpack how each region is adapting to a shifting landscape of trade tensions, inflationary pressures, and accelerating sustainability mandates. From massive investments in North American recycling and energy efficiency, to Asia’s digital transformation and Europe’s regulatory reset, the industry is in the midst of structural change—with regional nuances shaping how success will be defined.

North America: Expansion Meets Consolidation

The second quarter brought a mix of bold investments and restructuring. Companies like Pratt Industries and Green Bay Packaging advanced billion-dollar expansion projects aimed at modernizing capacity and boosting recycled packaging output. Yet, these moves came amid a string of mill closures and workforce reductions, including Georgia-Pacific’s Cedar Springs mill and Smurfit WestRock’s capacity cuts.

Environmental policy continues to loom large. Stricter emissions standards and transparency requirements are prompting producers to rethink operational efficiency and investment strategies—all while navigating trade friction and rising input costs.

Latin America: Growth Amid Volatility

Despite geopolitical uncertainty, Latin America remains a hotspot for expansion. Brazil’s Mato Grosso do Sul has become a focal point for global pulp investment, with Arauco’s 3.5 million ton Inocência project leading the way.

However, market imbalances persist. Oversupply has pressured prices, while the US–Brazil tariff conflict has distorted trade flows. A major highlight this quarter was the joint venture between Suzano and Kimberly-Clark, combining regional tissue operations across 14 countries—a sign of growing integration and strategic alignment in the region.

Europe: Balancing Regulation and Overcapacity

Europe’s pulp and paper industry is contending with declining demand, tight margins, and rising compliance pressures. Printing and writing grades fell by as much as 7%, while containerboard remained steady, but overcapacity prompted temporary mill downtime.

On the cost side, freight and energy rates are easing slightly, but volatility and the coming European Deforestation Regulation (EUDR) continue to challenge operations. New capacity due in early 2026—from Golbey RCB, Oulu FBB, and Mondi Štětí—will heighten competition, even as strategic downtime helps support margins through late 2025.

Asia: Digital Integration and Fiber Challenges

Across Asia Pacific, producers are doubling down on digital transformation and decarbonization. Indonesia’s APP secured Science Based Targets approval for a 54.6% emissions reduction by 2033, while Japan’s Oji launched a $300 million forestry fund to secure long-term fiber supply.

But challenges remain: fiber shortages in China and high input costs are tightening margins. Meanwhile, mergers and investments—from Suzano’s $3.4B tissue JV to APP’s $296M acquisition in South Korea—signal continued optimism in the region’s growth trajectory.

A Deeper Look

Across every region, one theme defines Q2 2025: transformation. From digital tools to decarbonization strategies, the pulp and paper industry is evolving faster than ever. Yet the road ahead is complex, shaped by regulation, cost pressures, and the pursuit of sustainability at scale.

At ResourceWise, our data-driven intelligence and regional insights help you see beyond the volatility—so you can make informed, forward-looking decisions in an unpredictable market.

Explore the full Q2 2025 Regional Pulp & Paper Report for detailed data, expert commentary, and strategic guidance for the months ahead.