Message from the FEPE President
In the past two years, the world has been transformed, by a global pandemic, political upheaval and war. All of it has affected FEPE member companies, requiring us all to adapt to a changing, unpredictable business environment.
FEPE has also been adapting, finding new ways to serve our members efficiently and effectively.
This annual report details market trends in 2022 and key FEPE news and activities.
Jean de Couespel, GPV International
The European Envelope Market
Facts and Figures 2022
Highlights
Please note that our delivery statistics are based on reporting by FEPE members only. The rest of the European market is NOT considered in these numbers)
In Q1 2022, 9.97 billion envelopes were delivered by FEPE members (approx 85% of the European market), representing a decrease of 6 % compared to Q1 2021.
Covid-19 still impacts the industry, but the significant challenges have also been the supply issues with paper and the rising raw materials prices.
Based on the discussions with FEPE manufacturing members, the demand has been higher than companies have been able to deliver. This demand hopefully will remain when the material supply issues are solved.
High energy costs and contract terms are hitting the bottom line for all manufacturers.
In the statistics, we only follow the envelope manufacturing figures, but members indicate that the demand for ecommerce packaging has remained high.
Reported by members
- Direct mail has held up well in some countries.
- Overprint businesses appear to have managed well so long as stock was available — they have seen an increase in their customer base.
- Post is still popular with advertisers — it is delivering measurable results.
- National elections, censuses and other significant national events generate good additional business for many people.
- The transactional market of statements and invoices continues to be under pressure (Keep me Posted)
- Air bubble pocket sales have stagnated as alternatives increase.
Short-term forecast
- Q3 & Q4 should perform similarly to previous years, finishing the year around 3-4% below 2021.
- However, rapidly increasing energy costs may well have a large impact on not just our businesses but on global markets.
- Increasing Inflation is leading to further increases in raw materials costs.
- Margins will be critical.
- Diversification is essential.
Forecast 2023 and beyond
- Global demand for envelopes is expected to fall slightly; between three and six percent depending on the country.
- Paper will continue to be in short supply.
- Technology — such as artificial intelligence, new vehicles and more integration between postal plants and other post organisations — will have an impact on physical mail.
- Posts (i.e. national/regional postal organisations) are not expected to fail at all. Governments will continue to fund universal services, but the level of subsidies will start to come down.
- There is a universal trend away from mail and toward packages that will continue, and that should be monitored.