The Pulp Trade Map · Innovation
Paboco said in February 2024 that it aimed to make over 20 million fiber-based bottles by the end of 2025 7. We found no published output. Frugalpac, a different bottle maker, says it has made more than 4 million bottles in total 8. This post sorts pulp-based packaging by stage, from lids in production to bottles at pilot scale.
Published October 27, 2026 · Facts as of October 27, 2026 · 10 min read · Sources listed at the end
Facts as of October 27, 2026. This page states the facts as they stood on that date. Figures, rules and company plans may have changed since publication. We review this guide every six months and update the pages.
The 60-second version
What is it?
Molded fiber is packaging shaped from cellulose fiber, such as coffee lids, spoons, egg cartons and cup carriers. Paper bottles are a second product group. Each product in this post carries a stage: in production, being built, pilot or lab 1,5,7.
Why does it matter?
The EU lists single-use plastic items to remove from the market and aims for recyclable packaging by 2030 10,12. Metsä names rising demand for fossil-free packaging and rules such as the EU packaging regulation among its reasons to build a fiber packaging line 6. For the wider pulp picture, see pulp in five minutes.
Myth or fact?
"Paper bottles are already made in large numbers."
See the answer
Partly true. Frugalpac says it has made more than 4 million Frugal Bottles in total 8. Paboco began full-scale production in February 2024 with a first run of at least 10,000 bottles, and its target of over 20 million bottles by the end of 2025 was a statement made at that time. We found no published output 7.
01How real is each pulp-based packaging product?
Each product below has a stage, and the figure gives the evidence for it. Fiber lids are in production in three places. A PulPac licensee reached a Dry Molded Fiber line with a nameplate capacity of 23,000 fiber lids an hour in June 2025 1. HZ Green Pulp in Malaysia, also a licensee, was reported in October 2025 to be delivering Dry Molded Fiber coffee lids at scale 2. Huhtamaki started smooth molded fiber lid production at Lurgan, Northern Ireland, in October 2024 5.
Two more are being built. Future Materials Sweden is moving to industrial production of fiber snus cans at a new plant in Ljungby, with two PulPac Scala machines ordered 4. Metsä Group will build a Muoto fiber packaging line at Aanekoski, with a start expected in 2028 6.
Paper bottles sit lower on the ladder. Paboco's bottle is at pilot stage, and Frugalpac's is in production at small scale 7,8. No source we found confirms whether Huhtamaki's molded fiber expansion at Hammond, Indiana, has reached the ramp-up planned for the end of 2023 14.
Pulp-based packaging, sorted by stage
- In Production
- In ProductionHuhtamaki smooth molded fiber lids, LurganProduction started in October 2024 at an existing molded fiber site in Northern Ireland. 5
- In ProductionFrugalpac Frugal BottleMore than 4 million bottles made worldwide in total. One US machine can make up to 2.5 million bottles a year. 8
- Being BuiltFuture Materials Sweden snus cans, LjungbyA new plant with two PulPac Scala machines on order (April 2026). 4
- Being BuiltMetsä Muoto line, AanekoskiEUR 25 million, nominal capacity above 100 million products a year, expected from 2028. The existing Muoto plant is a demo plant. 6
- PilotPaboco Next Gen paper bottleFull-scale production began in February 2024 with a first run of at least 10,000 bottles. The 20 million target is a February 2024 statement. No output found. 7
02How is molded fiber made, in plain words?
Our sources describe one difference between the two routes, and it comes from PulPac. In traditional fiber forming, "water is first added and then removed." PulPac's method "uses air, instead of water" 9. PulPac says this "saves massive amounts of both water and energy" and is up to ten times faster than conventional fiber forming 9. These are company claims, and the article gives no water or energy figures for either route 9.
No source we found describes the pressing, drying or finishing steps in detail, so the figure shows only what the sources state. For what else a pulp mill's wood can become, see the biorefinery post.
- Start with fiberThe products in this post are made from cellulose fiber. The sources we found do not say which pulp grade each maker uses. 3,4
- Traditional routeIn traditional fiber forming, water is first added and then removed, PulPac says. 9
- Dry routePulPac's Dry Molded Fiber forms the fiber with air in place of water. PulPac says it saves water and energy and is up to ten times faster. 9
- Smooth molded fiberHuhtamaki makes smooth molded fiber lids at Lurgan and other sites. It says the lids are home compostable and recyclable. 5
- Machines and productsPulPac's PU300 line, Modula and Scala machines make spoons, lids and snus cans. Huhtamaki makes egg cartons and cup carriers. 2,3,4,14
03Which EU rules push packaging away from plastic?
Two EU laws apply. The Single-use Plastics Directive requires member states to prohibit the sale of listed single-use plastic products. The list includes cutlery, plates, straws, and expanded polystyrene food containers and cups. The ban date is July 3, 2021 10,11. The directive lists plastic items to remove and names no replacement material 10.
The Packaging and Packaging Waste Regulation, known as the PPWR, is Regulation (EU) 2025/40. The European Commission says it has been in force since February 11, 2025 and applies from August 12, 2026. It aims for EU packaging to be recyclable in an economically viable way by 2030 12. Recital 37, an explanatory statement before the articles, says that "paper material resulting from the wood pulping process should not be considered as falling within the definition of plastic" under the regulation 13.
The regulation has other dated obligations. We could not confirm them in the official operative text, so the table lists only what the Commission page states. For Europe as a maker, buyer and rule-maker, see the Europe post. For every rule and date that touches pulp, see the pulp watch.
| Measure | What it does | Since | Status |
|---|---|---|---|
| Single-use Plastics Directive (EU) 2019/904, Article 5 | Member states prohibit listed single-use plastic products, such as cutlery, plates, straws and expanded polystyrene food containers and cups. 10,11 | July 3, 2021 | In force |
| Packaging and Packaging Waste Regulation (EU) 2025/40 | Packaging rules for the EU market. The Commission says it aims for recyclable packaging by 2030. 12 | Feb 11, 2025 | Applies from Aug 12, 2026 |
| Directive 94/62/EC, the earlier packaging directive | Generally repealed on August 12, 2026. 12 | Aug 12, 2026 | Repealed |
04What is the state of paper bottles?
Paboco began full-scale production of its Next Gen Paper Bottle at Slangerup, Denmark, on February 20, 2024. The bottle is about 85% paper with a thin HDPE barrier, and the share varies by bottle shape. ALPLA is the majority shareholder. Absolut Group, Carlsberg Group, The Coca-Cola Company, L'Oreal and Procter and Gamble are pioneer partners. The first large-scale run was a minimum of 10,000 bottles, and Paboco aimed for over 20 million bottles by the end of 2025 7. We label this stage PILOT, because the source gives a first run and a target. No source we found gives Paboco's actual output in 2025 or 2026, or the commercial status of its partners' bottles.
Frugalpac is a British company that launched its Frugal Bottle in 2020. Monterey Wine Company in King City, California, installed a Frugal Bottle Assembly Machine in 2024. It says it is the first US maker of the bottle, and that the machine can produce up to 2.5 million bottles a year. The trade site reports that more than 4 million Frugal Bottles have been produced worldwide 8. The source is a wine trade site relaying the facility's statements, and it does not state the barrier material.
The two companies make different bottles, and one figure is a target while the other is a cumulative count. We therefore do not compare them.
05Where does pulp demand come from in packaging?
Stora Enso lists end uses for its market pulp that include kraftliner, corrugated board, wrapping and sack papers, and carton board. It says unbleached kraft pulp suits packaging, board and specialty paper 15. These paper and board grades are the established packaging use of pulp. Molded fiber is a newer one.
No source we found gives the tons of pulp that molded fiber lines use. The 23,000 lids an hour is a machine speed. Output is a separate figure 1. Announced lines are counted in products: PulPac's first demo line has a starting capacity of 230 million spoons a year 3, and Metsä's Muoto line has a nominal capacity above 100 million products a year 6. Demand for pulp from molded fiber therefore cannot yet be sized in tons. Each line is a purchase of capital goods.
The same August 2026 report says Metsä cancelled its planned Kuura textile fiber mill because "too few customers are willing to pay a premium for responsibly produced materials" 6. See clothes from trees for textile fibers and new materials from cellulose for other products and their stages.
06What should a packaging buyer ask a supplier?
A buyer, a lender and a pulp supplier can use the same questions. The stage of the product sets the risk. A supplier at pilot stage carries more performance risk than one in production, and a buyer that commits volume through an offtake agreement shares it. Tie payment terms and working capital to delivered units, not to plans.
For how lenders look at these risks, see buyer, country and performance risk, financing industrial goods trade and purchase order finance in the Ossiano Trade Finance Guide. For the EU rule on tracing wood, see tracing the tree.
Seven questions for a packaging buyer
- Which stage?Ask for the stage of the exact product (in production, being built, pilot or lab) and the evidence, such as a delivery date.
- Speed or output?A line speed such as 23,000 lids an hour is a nameplate figure 1. Ask for units delivered in the last 12 months.
- Which EU rule applies?The PPWR applies from August 12, 2026 12. Check any further dated obligation in the official text before you rely on it.
- Who carries the risk?Agree who pays for stage risk before volume is committed, and link payments to delivered units.
What this means for traders
- Ask for the stage and the evidence before you plan volumes. Fiber lids are in production. Paper bottles are at pilot or small scale.
- Treat line speeds and targets as plans. Ask for units delivered.
- Use the Commission's dates for the PPWR: in force February 11, 2025 and applies from August 12, 2026. Check any other dated obligation in the official text.
Questions traders ask
What is molded fiber?
Molded fiber is packaging shaped from cellulose fiber. Examples in this post are coffee lids, spoons, egg cartons, cup carriers and snus cans.
What is dry molded fiber?
Dry Molded Fiber is a forming method from PulPac that uses air in place of water to form the fiber. PulPac says it saves water and energy and is up to ten times faster than conventional fiber forming. These are company claims.
Are paper bottles in production?
Frugalpac says it has made more than 4 million bottles in total. Paboco began full-scale production in Denmark in February 2024 with a first run of at least 10,000 bottles. We found no published output against Paboco's target of over 20 million bottles by the end of 2025.
When does the EU packaging regulation apply?
The European Commission says Regulation (EU) 2025/40 has been in force since February 11, 2025 and applies from August 12, 2026.
Does the EU single-use plastics ban name paper as a replacement?
No. The Single-use Plastics Directive lists the plastic items to remove from the market, with a ban date of July 3, 2021. It names no replacement material.
Read next
- InnovationMore than paper: the biorefinery
- InnovationNew materials from cellulose: what is real and what is still in the lab
- InnovationTracing the tree: certification and the EU rule
- InnovationClothes from trees: dissolving pulp, viscose and new fibers
- Makers and buyersEurope: maker, buyer and rule-maker
- Money and rulesPulp watch: every rule and date in one place
- Ossiano Trade Finance GuideHow each trade finance instrument works
- GlossaryTrade finance terms in plain English
Buying, selling or financing packaging and pulp? Ossiano Capital works on trade finance for pulp and paper trades.
Start the ConversationSources and notes
- PULPAPERnews, PulPac licensee reaches milestone with Dry Molded Fiber line, June 10, 2025. https://www.pulpapernews.com/en/node/16760
- Packaging News (Australia), HZ Green Pulp scales Dry Molded Fiber lids, October 29, 2025. https://www.packagingnews.com.au/beverage/hz-green-pulp-scales-dry-molded-fiber-lids
- Packaging Europe, PulPac takes major step towards global scaling of technology, undated. https://packagingeurope.com/pulpac-takes-major-step-towards-global-scaling-of-technology
- Packaging Gateway via Yahoo Finance, PulPac and Future Materials move fiber snus cans to production, April 29, 2026. https://finance.yahoo.com/sectors/technology/articles/pulpac-future-materials-move-fibre-091130835.html
- Packaging Insights, Huhtamaki kicks off smooth molded fiber operations in Northern Ireland, October 21, 2024. https://packaginginsights.com/news/huhtamaki-kicks-off-smooth-molded-fiber-operations-in-northern-ireland.html
- Packaging Insights, Metsä pivots from textile fibers to food packaging as market conditions reshape strategy, August 13, 2026. https://www.packaginginsights.com/news/metsa-pivots-textiles-fiber-food-packaging.html
- Packaging Europe, Paboco commences full-scale production for fiber-based bottles, February 20, 2024. https://www.packagingeurope.com/paboco-commences-full-scale-production-for-fibre-based-bottles/
- Wine Industry Advisor, California Paper Bottle Facility Marks Two Years of Growth as US Brands Move Beyond Glass, October 22, 2026. https://wineindustryadvisor.com/2026/10/22/california-paper-bottle-facility-marks-two-years-of-growth/
- Packaging Insights, PulPac uses water reduction method to produce Dry Molded Fiber technology, October 14, 2022 (statements by PulPac's chief commercial officer). https://www.packaginginsights.com/news/pulpac-uses-water-reduction-method-to-produce-dry-molded-fiber-technology.html
- EUR-Lex, Directive (EU) 2019/904 of June 5, 2019 on single-use plastics, Articles 5 and 17 and Annex Part B. https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32019L0904
- European Commission, EU restrictions on certain single-use plastics, read October 27, 2026. https://environment.ec.europa.eu/topics/plastics/single-use-plastics/eu-restrictions-certain-single-use-plastics_en
- European Commission, DG Environment, Packaging waste, read October 27, 2026. https://environment.ec.europa.eu/topics/waste-and-recycling/packaging-waste_en
- EUR-Lex, Regulation (EU) 2025/40 on packaging and packaging waste, recital 37 (recitals only; operative articles not read). https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32025R0040
- Huhtamaki, press release on expanded molded fiber manufacturing capacity in North America, June 8, 2022. https://www.huhtamaki.com/en/media/media/press-release/2022/as-part-of-its-overall-commitment-to-developing-fiber-solutions-huhtamaki-breaks-ground-on-its-expanded-molded-fiber-manufacturing-capacity-in-north-america/
- Stora Enso, Pulp for paper, board and tissue, undated, read October 17, 2026. https://www.storaenso.com/en/products/market-pulp/pulp-for-paper-board-and-tissue
Trade figures come from UN Comtrade (2015 to 2025, as reported by 10 countries) and FAOSTAT (1961 to 2024), checked and recalculated by us; each chart names whose data it uses. All tons are metric tons. All facts on this page are as of October 27, 2026, the date of publication, and may have changed since. For rules and tariffs, check the pulp watch before you act.
About this post. Prepared for Ossiano Capital. People planned, researched, wrote and checked this post, using AI tools to help with research and checking. You are welcome to quote or reuse it: please credit Ossiano Capital and link to this page.
