January, 2015 by SAI
China has become the world’s second largest packaging market after the USA, it accounted for 48.7% of the Asia-Pacific containers and packaging market’s value in 2014. The packaging market in China has been driven by rapidly-growing industry sectors such as food & beverage, pharmaceutical and household chemical development. In 2013, packaging consumption in China reached a value of US$ 106 billion with a CAGR of 13.9% between 2009-2013. It is forecast to reach a total revenue of US$ 174.2 billion in 2018.
In comparison, the Japanese packaging market, second to China in Asia-Pacific, declined to US$ 52.2 billion with a CAGR of -1.7% over 2009-2013. The Indian market followed with revenue of US$ 17.1 billion and a positive CAGR of 7.2%, it was prospected to be one of the top 5 emerging markets in the global packaging industry after China, followed by the Middle East, Eastern Europe and Brazil.
China’s packaging industry can be broadly segmented into paper packaging, plastic packaging, metal packaging, glass packaging, packaging printing and packaging machinery, of which paper packaging had the largest market size in 2013 (33%) worth US$ 75.8 billion, followed by plastic packaging (31%) and packaging printing (15%).
Substitution within the packaging segments is moderate. However, the leading drivers, such as lifestyle change and environmental health awareness among a growing middle-class population of consumers, along with government legislation, will move toward favoring sustainable packaging using recyclable and biodegradable materials. China is increasingly threatened by pollution and contamination issues, these calls for close government monitoring of energy consumption and pollution emissions in the printing and packaging industry. The projected shift will instigate fundamental change and advanced technology production. These trends will boost competition between manufacturers of international and local brands.
To succeed against rivals and advance sustainability in China’s packaging industry, it’s critical to develop in-depth intelligence to assist strategy development and implementation. SAI has widespread experience in China’s packaging market and a large experienced team of professionals based in China, India and the rest of Asia. It has been providing extensive research and analysis for over 35 years in the Asia Pacific region.