Metsä Group Shifts Focus to Fiber-Based Food Packaging Amid Market Changes

Metsä Group has announced a strategic pivot from textile fibers to food packaging, investing €25 million (US$28.8 million) in a new production line for Muoto fiber packaging at its Äänekoski facility in Finland. This decision comes as the company cancels plans for its Kuura textile fiber mill due to oversupply and declining competitiveness in the textile market.

The Finnish industry group noted a significant global overproduction of man-made cellulosic fibers, particularly in Asia, which has reduced demand for responsibly produced materials. Metsä Group is now focusing on the growing consumer interest in fiber-based foodservice packaging, which aligns with evolving market trends and regulatory pressures, such as the EU Packaging and Packaging Waste Regulation (PPWR).

Antti Valtonen, VP for Muoto, emphasized that the packaging market is evolving rapidly, driven by customer expectations and regulatory changes. The new Muoto production line will be operational by 2028, with a projected capacity of over 100 million products annually, utilizing technology from Valmet.

Muoto fiber-based products are designed as sustainable alternatives to plastic, offering functionality and lightweight properties suitable for demanding food packaging applications. Niklas von Weymarn, CEO of Metsä Spring, highlighted the competitive edge of Muoto packaging in meeting the increasing demand for fossil-free solutions.

The company is also collaborating with partners like Amcor and G. Mondini to develop innovative products, including a new fiber-based tray project. The shift towards fiberization in foodservice packaging is gaining momentum, supported by consumer demand and regulatory frameworks that require substantiated sustainability claims.

Metsä Group continues to pursue innovation in packaging, including projects focused on lignin products and carbon capture, while also expanding its design capabilities with a new studio in Milan, Italy.