Wenzhou Packaging Industry in 2020: 4,620 Enterprises, About RMB 65 Billion in Output

On Aug. 26, the Wenzhou Packaging Federation’s seventh meeting of the seventh council disclosed that the city’s packaging industry recorded an industrial output value of about RMB 65 billion in 2020.

Incomplete figures from the federation show 4,620 packaging enterprises in Wenzhou with 157,000 employees. By segment, there are 1,288 packaging machinery manufacturers (including food and beverage machinery, pharmaceutical machinery and cosmetics machinery, among others), 1,157 papermaking and paper-products enterprises, 487 plastic packaging companies and 1,688 packaging printing businesses. Within the industry’s roughly RMB 65 billion in 2020 industrial output, 698 above-scale packaging enterprises contributed RMB 41.363 billion.

Sample data from 24 member companies tracked by the federation—10 in packaging machinery and 14 in paper-product packaging—showed the group’s industrial output rose 22% year on year in the first half of the year, sales revenue climbed 53% and total profit increased 4%. Performance varied sharply by segment: the 10 packaging machinery companies saw industrial output grow 53%, sales revenue rise 57% and total profit jump 116%, while the 14 paper packaging companies posted 8% growth in industrial output, 51% growth in sales revenue and a 34% year-on-year decline in total profit.

The Wenzhou Packaging Federation attributes the sector’s overall growth over the past five years to its strengths as a growth industry. Packaging printing has been listed by the municipal government as a traditional, distinctive and advantageous industry, part of the city’s “5+5N” key industrial system and an important element of Wenzhou’s equipment manufacturing base. The export of packaging products, equipment, raw and auxiliary materials and packaging technology has accelerated, with domestic and international market shares continuing to rise and the industry’s standing improving. The industrial landscape has also been refined into a system led by packaging machinery, paper-product packaging, plastic packaging and packaging printing, and covering packaging machinery, packaging design, packaging equipment manufacturing, packaging product production, packaging materials and packaging logistics. Packaging enterprises are shifting from manufacturing-oriented models to “Internet+” operations, with notable digital and intelligent upgrades and a clear improvement in technical levels.

Based on the first-half sample data and the federation’s multiple surveys and enterprise visits during the same period, packaging machinery is maintaining solid momentum. In paper packaging, severe homogenization and intense competition have pushed some companies into losses, leaving imbalances within the sector and among enterprises. Nevertheless, overall market demand has remained stable, and production order activity has largely held up. At the same time, overseas economic recovery is accelerating, external demand is lending stronger support to exports, and exports of specialized packaging equipment continue to grow steadily. E-commerce sales are still rising, the industry’s digital economy and intelligent manufacturing are expanding faster, and entrepreneurs’ investment enthusiasm has improved.

This article is reprinted from China Packaging Network (pack.cn). Original link: http://news.pack.cn/show-378184.html