Paptic and the EIC Accelerator: Paper Bags and a Missed €100M

Paptic, based in Espoo, Finland, makes Paptic, a recyclable wood-fibre material used for shopping bags, garment bags and e-commerce mailers in place of plastic. It has produced it at industrial scale since 2018, according to a 2022 announcement of a distribution deal with Walki. Its EIC project, FlexFoam, set out to use foam forming to produce a "sustainable alternative to flexible packaging" faster and at larger scale.

The European Innovation Council granted €2,493,750 towards a €3.6 million project from January 2023 to September 2025. In September 2023 Paptic raised €23 million in equity from the European Circular Bioeconomy Fund, Ecolab and Itochu, plus a €10 million loan from the Finnish Climate Fund, and stated a revenue target of €100 million by 2026. The only published project report, for 2023, says production speeds of 700 to 1,000 metres a minute were shown at pilot sites, but the lead scale-up partner withdrew. Paptic's revenue fell to €3.9 million in 2025, with an operating loss of €5.3 million, according to Asiakastieto.

Where Paptic Stands Now

A new chief executive, Jarkko Tuominen, took over on 1 January 2026, and in July the company strengthened its management team. Its news in 2025 and 2026 lists customer wins: transit bags for Nikon's European repair service, shopping bags for the Finnish retailer Kekäle and for Kesko stores, garment bags for SYSUM and wine gift bags for Jacob's Creek. Its equity ratio was 62% at the end of 2025.

The Technology: Foam-Formed Fibre

The FlexFoam report says each step of the new process was demonstrated separately at different pilot facilities, including Finland's Fiber-X, with headbox and wire speeds of 700 to 1,000 metres a minute, "over 3 times the speed of commercial foam forming process references". The next step was to design an industrial production line. The report also records that "the initial lead partner from a major Scandinavian pulp and paper company withdrew due to cash flow issues".

What the EIC Project Promised, and What CORDIS Shows

The project promised a sustainable, scalable alternative to plastic flexible packaging made with faster foam forming. Its first-year report shows the pilot steps working and a partner lost. No report covers the rest of the project, and no industrial foam-forming line has been announced. CORDIS still lists the project as signed.

1. Pilot production speedsShown700 to 1,000 m/min.
2. Scale-up partnerLostWithdrew in 2023.
3. Industrial lineNot announcedNo public update.
4. Commercial growthReversedRevenue down since 2022.

The Money

Paptic's revenue rose from €2.3 million in 2021 to €10.8 million in 2022, then fell to €7.3 million, €6.2 million and €3.9 million in the next three years. Over the same period its operating loss grew from €46,000 to €5.3 million and its staff from 25 to 39. The 2023 financing brought €23 million in equity and a €10 million loan.

What Cannot Be Checked

Why Europe Should Care

Paptic offers a European fibre-based replacement for plastic bags and mailers, with well-known customers. The EIC helped it test faster production and major investors backed a €100 million ambition. Three years on, the business is smaller than before the funding.

The Verdict

Paptic and the EIC have not been asked for comment for this article. It is based entirely on public records and published statements, linked throughout.