- A brief overview of the Chinese packaging industry by Invest Sweden colleague Bin Li in Shanghai.
Key characteristics of the Chinese packaging industry
The Chinese packaging industry has experienced a high-speed growth during the last 5 years, with the annual increase rate of 18-20%. The total production value of Chinese Packaging Industry in 2010 is expected to approach 1.2 trillion Yuan. China has become the second largest country after US in terms of production.
Chinese packaging industry is dominated by small and medium sized enterprises. Innovation in packaging machinery, intelligent packaging environmental-friendly packaging materials and energy-efficient packaging technology has been the hotspots in Chinese packaging industry.
Key data of Chinese packaging industry in year 2009:
• Total production value: 1003.00 billion Yuan, increased at 20.93%
• Industrial sales value: 978 billion Yuan, increased at 21.23%
• Export value: 129 billion Yuan, 16% of the sales value, increased at 20.31%
• Profit of the industry: 37.28 billion Yuan, increased at 19.87%
• Number of companies: 14,167
• Number of employees: 1,814,022
In terms of production and sales, paper packaging is still the biggest sector in Chinese packaging industry, plastic takes the second place and the third goes to package printing. This situation is the same as in 2005.
Packaging trends by sector
Food and beverage packaging
This sector takes over 50% of the total Chinese packaging market. It is expected that the Chinese food and beverage packaging market value for the year will reach 600 billion Yuan by the end of 2015.
Most wanted technologies are: to improve user-friendliness; to increase barrier property; direct warm filling; packaging for fresh food; packaging for baked food.
Pharmaceutical packaging
Pharmaceutical packaging now takes only 5% of the total packaging market in China. It is however speculated that 55 billion Yuan as the market value for pharma-packaging for the year can be easily reached by the end of 2015. It is commonly agreed that pharmaceutical market and therefore pharma-packaging market will continue to keep a rapid growth in China.
Packaging for daily chemicals (e.g. shampoo, lotion…)
This sector takes about 3% of the total Chinese packaging market. It is estimated that the Chinese market for daily chemicals packaging for the year will reach 30 billion Yuan by the end of 2015. In this sector, transparent packages, vacuum packaging and “green” packages are the trends.
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