Leading Pulp, Paper, and Packaging: New Executive Demands

The recent wave of industry mergers—Smurfit Kappa with Westrock, DS Smith with International Paper, Berry Global with Amcor—signals more than just market consolidation. 

These mergers point to a shift in what pulp, paper, and packaging companies need from their leaders. 

The Old vs. New World of Pulp, Paper, and Packaging Leadership

A decade ago, leading a pulp, paper, or packaging company was straightforward—focus on operations and manage costs. Leaders who knew their machines and kept the lines running efficiently did well in what were largely regional markets. 

But today tells a different story. The industry has shifted—packaging and tissue products dominate, with recycled packaging making up 63% of top products in 2023, a far cry from when newsprint and copy paper led in 2008. Companies cannot operate in isolation anymore. Success now demands collaboration across the industry, from partnerships with distributors to closer work with retailers. 

Meanwhile, we are seeing massive consolidation through mergers as mentioned above. While these merged giants will control only about 10% of the global market, they are changing how companies need to think about leadership. 

The Global vs. Regional Challenge

Consider what is happening in different markets. Asia now accounts for about 50% of the global packaging paper industry, up from just 28% in the 1990s. European companies face new regulatory pressures around deforestation and sustainability that could make their packaging more expensive than North American competitors.  

This geographic complexity is further intensified by differences in market concentration across regions—a trend that has accelerated over the past decade as the largest companies have strategically focused their operations on specific segments rather than trying to compete across all paper grades. 

This geographic spread creates practical leadership challenges. When the EU’s new supply chain regulations take effect in 2026, companies will need executives who can ensure environmental and human rights standards across their entire supply chain. That is a very different skill set from what most pulp, paper, and packing industry leaders needed even five years ago. 

Leaders need to understand these regional dynamics to make smart decisions about where to compete and how. 

The Customer Connection

One telling shift is that pulp, paper, and packaging companies increasingly hire employees from their customers, especially in sales roles. This trend makes sense when you look at what is happening in the market. Companies need people who understand not just paper-making, but how customers actually use their products. 

This shift reflects a broader change happening in paper companies’ commercial approach. McKinsey’s research shows companies face a choice: invest in being pure upstream players focused on materials, or become full packaging solutions providers working directly with brands. Their data suggests only a select few companies are positioned to successfully make that leap to solutions provider—and even they need to be careful not to overstep. Brand owners often push back when packaging companies try to drive consumer-facing innovation, preferring them to stick to core material science expertise. 

The Sustainability and Regulatory Push

When the EU’s new supply chain regulations kick in for 2026, paper companies will need to prove they are doing right by both people and planet across their entire operations. This is not just another set of rules to follow—it will undoubtedly change how companies structure themselves.  

Some companies have moved headquarters out of the EU to lighten their regulatory load. But no matter where they are based, they still need to meet these standards if they want their products to be available on the European market. As a result, paper companies now want people who know ESG incredibly well—not just for the extra reports EU regulations demand, but because sustainability shapes everything from operations to sales. They need leaders who can talk sustainability with politicians one day and figure out how to make it work on the factory floor the next. 

The Innovation Challenge

Pulp, paper, and packaging companies face growing pressure to replace plastics with sustainable alternatives. For flexible and rigid packaging makers, this means completely rethinking their products. But it also opens new doors. According to McKinsey’s analysis, this challenge goes beyond simple material substitution—industry leaders are exploring entirely new territories, from applications for nanofibers to composite materials and lignin-based carbon fiber. Success requires innovation managers who can work across multiple technical domains while maintaining their packaging expertise.  

This changes what companies look for in their people. They want innovation managers who spot opportunities before competitors do. They need salespeople who get both the technical side and what makes consumers tick. And they need finance leaders who can handle operations spanning multiple countries, along with ESG experts to manage expanding reporting duties. 

A Complex Talent Equation

Running a pulp, paper, and packaging company means juggling several balls at once. The market is tough with 40 million tonnes too much capacity floating around, likely until 2027 at least. But that is just one piece. Consumer habits shift quickly too—when money gets tight, people buy cheaper products, often with plastic rather than paper packaging. And each region tells its own story—Asia grows twice as fast as Europe and North America but sits on 70% of the world’s extra capacity. 

The financial picture adds another layer to this complexity. A small group of companies with high margins and low debt can now invest five to ten times more than their competitors. This means paper company leaders face a dual challenge: they need to master digital manufacturing tools that could cut costs by up to 15%, while also making smart choices about major market investments. 

How Stanton Chase Has Adapted

The pulp, paper, and packaging industry faces real challenges—too much capacity, sustainability pressures, tech disruption, and changing consumer tastes. But good leaders spot opportunity in challenge. The market will see packaging growth returning to normal—3-3.5% yearly for corrugated, 2.5-3% for boxboard. But grabbing that growth means having people who get both the old and new worlds of paper. 

These shifts shape our approach to executive search. Our consultants have a proven track record in finding leaders who drive innovation while managing complex organizational responsibilities. We identify executives who excel at cross-functional collaboration, build strong relationships with global customers, and navigate multilingual, multicultural business environments. 

About the Author

Christoph Leydolt is Partner at Stanton Chase Vienna and Global Subsector Leader for Pulp, Paper, and Packaging. With over a decade in executive search and prior experience as both CFO and CHRO, he brings unique insight to leadership recruitment. He specializes in placing top executives across Europe and the CIS region, focusing on manufacturing, particularly paper and packaging. His approach emphasizes building long-term partnerships through dedicated service, integrity, and efficiency.