Sales volumes stabilized
Envelope volumes in 2024 only 3,1% below previous year
The extremely negative trend in sales volumes in the European envelope industry in 2023 has not continued in 2024. After a good third quarter of 2024, the fourth quarter ended with a minus of 5%. On an annual basis, the FEPE members reported a sales volume of 30,2 billion, which corresponds to a volume decrease of 3.1% compared to the previous year. The moderate decline in 2024 is above the long-term trend of our industry.
After the strong decline in volumes in previous years, the more positive development in 2024 is hopefully the beginning of a sustained improvement of our market situation.
However, when classifying the figures, it must be taken in account, that 2023 was one of the worst years ever. Just 5 years ago, the comparable figure was still at a level of 46 billion units, more than 50% above the level of 2024.
Nevertheless, the double-digit declines in quarterly volumes seem to be history. We have already seen a change in the market climate since the beginning of the year.
The German eCommerce Association bevh also published current figures that signal a slight improvement in online business. The decline in online orders has been stopped and for the first time since 2020 bevh reported a small sales growth of 1,1% after a decline of 12.7% in 2023.
The advertising market recovered in 2024
Due to the unclear economic situation, many companies cut their advertising spending in 2023 and agencies suffered from smaller budgets. In the mailing segment and in the overprint area, we had to accept significantly falling order sizes and overall significantly falling sales volumes in 2023. The declines in this periode were 25% and more. Since spring 2024, however, advertising spending has increased again in many regions of Europe. Nilsen reported an increase of over 11% in Germany. The situation in other areas of Europe was similar. However, not all channels benefited equally from this growth. While digital channels recorded considerable growth, according to Nilsen, traditional advertising channels, including direct mail, benefited only to a small extent. Our direct mail business is still far below pre-Corona levels.
Q1 is normally the best quarter of a year.
More optimistic outlook for 2025
With a minus of 15% the year 2023 was really more than disappointing for our industry. Now, after the more stable year 2024, the mood is somewhat more optimistic. With a minus of 3,1% we ended in 2024 above the long-term trend and we closed the year with a European volume of 35 billion units (including the volumes of non-members).
Our industry stepped in the year 2025 with good order load and a relatively stable level of sales prices. Paper prices also promise to remain stable in the first quarter. Overall, therefore, good conditions for positive business development. It remains to be seen whether this positive trend will continue in the second quarter. Overall, volume development in 2025 is expected to be in line with the long-term trend.
The eCommerce packaging business, which is becoming increasingly important for the industry, is not fully recorded in the FEPE statistics, but is likely to continue to grow for FEPE members as a whole in 2025.
