China Paper Packaging Industry Analysis: Steady Growth, Plastic Substitution, Food Packaging and Per Capita Room

(1) China's paper products packaging industry keeps steady growth

Over the past few years, China's paper products packaging sector has continued a steady trajectory. The pool of above-scale enterprises has kept expanding, while revenue and profit levels have remained broadly stable. China Packaging Federation data show that above-scale enterprises generated 304.547 billion yuan in main business revenue in 2022, down 4.81% year on year; the 2014-2022 compound annual growth rate was about 4.01%.

Revenue trend of China's paper packaging industry, 2014-2022 (unit: RMB 100 million)

Data note: China Packaging Federation; statistical scope has been adjusted

(2) Eco-friendly paper bag demand keeps growing under plastic substitution

Eco-friendly paper bags have become an essential part of modern life, combining green sustainability, attractive design and premium quality. Demand has risen steadily in recent years, and shopping malls, supermarkets, retail stores, pharmacies and other consumer venues are increasingly adopting paper bags.

Zion Market Research's 'Global Paper Bags Market: Industry Size, Share, Growth, Analysis and Forecast, 2018-2025' values the global paper bag market at US$4.7 billion in 2018 and projects it to reach US$6.35 billion by 2025, with a 4.4% CAGR from 2019 to 2025.

On 19 January 2020, the National Development and Reform Commission and the Ministry of Ecology and Environment issued the 'Opinions on Further Strengthening the Control of Plastic Pollution'. The document calls for promoting alternative products: in shopping malls, supermarkets, pharmacies and bookstores, it encourages non-plastic items such as eco-friendly cloth bags and paper bags, plus degradable shopping bags; it supports self-service, smart dispensing devices for public convenience; and it promotes degradable packaging film or bags for fresh products. As domestic environmental policies are implemented more deeply and public environmental awareness grows, plastic substitution will accelerate. China's eco-friendly paper bag market is expected to grow steadily in the coming years.

(3) Food packaging demand grows steadily

Against mounting global environmental pressures, domestic green policies and rising consumer attention to food safety and health, paper-based food packaging is widely favored by consumers. Its single-use nature also drives faster market consumption, giving the sector a favorable outlook.

Faster work and life rhythms are making dining out, quick meals and food delivery part of more consumers' routines. As anti-food-waste thinking gains ground, packing up leftovers will also become a common dining behavior, which should continue to increase demand for paper-based food packaging. The 100EC E-commerce Research Centre's '2019 China Life Service E-commerce Market Data Report' shows that China's online food delivery market was expected to reach 291.25 billion yuan in 2019, up 17.43% from the previous year, while online food ordering users were expected to reach 423 million.

Growth trend of China's online food delivery market size and user scale, 2015-2019

(4) China's per capita paper packaging consumption has substantial room to grow

In aggregate terms, China's packaging paper market has expanded rapidly in recent years, but per capita consumption is only US$12 per year. That remains a large gap compared with major countries worldwide and is far from the industry's 'ceiling'. As people's consumption levels rise, their expectations for quality of life will rise accordingly, and the market size of the packaging paper industry and downstream paper products consumption industry is expected to expand further.

China's packaging paper consumption is rising steadily

China's per capita packaging consumption is significantly lower than that of developed countries (US$/year)

Data source: Light Industry and Papermaking February Industry Dynamics Report, China Galaxy Securities

This article is republished from China Packaging Network (pack.cn). Original link: http://news.pack.cn/show-379440.html