European Cellulose Market Status Quo & Future Trends of China–EU Macro/Micro Economics and Trade
——Craig Barker, CEO of Kelheim

The report pointed out that the European economy is in a phase of low growth and high pressure. Soaring inflation is driving consumption downgrades, with spending on textiles and apparel continuing to decline. The second-hand clothing market has seen explosive growth. Turkey, as a key supplying country, is experiencing significant export pressures. EU consumer spending is shifting toward experiences, and sourcing channels are moving to low-cost countries. At the same time, new EU regulations such as the EU Deforestation Regulation (EUDR), the Carbon Border Adjustment Mechanism (CBAM), and the Extended Producer Responsibility (EPR) scheme will substantially raise compliance costs. These regulations impose stringent requirements on supply chain traceability, carbon emission control, and product recycling, significantly affecting the export competitiveness of the cellulose fiber and textile industry. The report recommended that related companies shift their R&D and market focus to high-growth markets outside the EU, expand into application areas such as nonwovens, focus on high-durability, high-strength fibers and high-end application scenarios, and improve technical capabilities such as fabric washing stability. For integrated pulp-and-fiber companies, they should leverage their low-carbon advantages to transform compliance capabilities into competitive strengths, thereby covering the added cost pressures.




