According to the classification of express packaging, the packaging industry can be divided into paper packaging, metal packaging, plastic packaging, glass packaging and other fine molecular industry.
From the perspective of industry chain, the upstream of packaging and printing industry is mainly paper-making and equipment manufacturing industry, while the downstream connects cigarette, IT electronics, food and beverage industries.The upstream raw materials are mainly plastics, equipment, waste paper and wood pulp, while the downstream industry has a large demand for cigarettes, IT electronics, food and beverage products.
The state has issued a series of policies to promote and promote the development of packaging industry.“China Packaging Industry Development Plan (2016-2020)” clearly points out that during the “13th Five Year Plan”, the annual growth rate of the national packaging industry will keep pace with the growth rate of the national economy. By the end of the “13th Five Year Plan”, the annual revenue of the packaging industry will reach 2.5 trillion, and the total export volume of packaging products will increase by more than 20% compared with the “12th Five Year Plan” period.The global market share is not less than 20%.
During the 13th Five-Year Plan period, the main tasks for the development of packaging industry are as follows:To independent innovation as the base point of the industry development and transformation and upgrading of the main support, surrounding the independent innovation ability, two depth fusion, civil-military integration packaging, industrial development foundation, cultivating new standard construction, packaging, packaging and branding, such as the main task, comprehensively promote green packaging industry transformation, laying solid foundation for the construction of the “packaging power”.
II. Analysis of the development status of packaging and printing industry
In recent years, the global packaging and printing industry has entered a mature stage of stable development, and its growth rate is basically equal to the average growth rate of the world economy.According to statistics, in 2017, the market size of the global packaging and printing industry was 851 billion US dollars, with a year-on-year growth of 1.4%. In recent years, the growth rate basically fluctuated around the central 2%, which was close to the natural economic growth rate of developed economies.
However, the sustained and rapid growth of China’s economy and the continuous expansion of downstream demand drive the growth rate of the market size of China’s packaging and printing industry far higher than the global average level.In 2017, the main business income of Chinese packaging and printing industry (excluding the sub-industry of packaging machinery) was 1104.837 billion yuan, an increase of 9.2% compared with 2016.
Third, China’s packaging and printing industry downstream demand analysis
China’s per capita packaging consumption is significantly lower than the global level, and there is still a large room for improvement in the future.From the perspective of total volume, although the scale of China’s packaging and printing market is growing rapidly, the per capita consumption is only 12 US dollars per year, which is still a big gap compared with major countries and regions in the world.
China’s per capita packaging consumption is significantly lower than the level of developed countries (US/year)
The printing industry can be mainly divided into packaging printing, publication printing and business printing. In the field of packaging printing, cigarette label printing, wine label printing and other paper packaging such as medicine, daily necessities and electronic products are the main sources of demand for packaging printing.
1, express packaging
In terms of storage and transportation packaging, the expansion of express demand replaces the manufacturing export of industrial products and becomes the main driver of domestic storage and transportation packaging.
Due to the high degree of standardization and high volume of storage and transportation packaging, the review of the business structure of leading enterprises such as International Paper and American International Packaging shows that storage and transportation packaging is the main driving force for their business growth.In China, the manufacturing and export of industrial products used to be the main engine driving the growth of packaging demand for storage and transportation. However, since 2011, the main driver of the growth has shifted to the demand for express packaging generated by the development of e-commerce business.
Goods traded online cannot be separated from offline express delivery and logistics distribution. The developed domestic logistics system also provides strong support for the increasing penetration rate of e-commerce year by year.Since 2011, China’s express delivery business volume above designated size has seen a “blowout growth”.From January to October 2018, the total volume of express delivery service enterprises in China reached 39.43 billion pieces, up 26.6 percent year on year.The business revenue reached 478.05 billion yuan, up 23.5% year on year.
2, smoke label printing
In October 2018, the national cigarette production was 182.46 billion sticks, up -1.7 percent year on year;From January to October 2018, the national cigarette production was 1,978.8 billion pieces, up 2 percent year on year.From January to December in 2017, China’s cumulative cigarette production was 2344.83 billion sticks, down 1.6% year on year.Cigarette production in China was 2,382.58 billion sticks in 2016, down 8 percent year-on-year.
The tobacco label industry is facing new challenges from the following two aspects: one is due to the implementation of national public bidding and bidding in the tobacco label industry, the price of tobacco label may decline to a certain extent due to the fierce competition between enterprises.The second is the rise in the production of raw materials, and the possible inflation resulting in procurement, process, power, transportation, sales, labor and other costs.
3. Beer label printing market
China is the largest beer producer and the world’s largest beer consumer, accounting for more than 25 percent of the world’s total beer sales.The per capita consumption of beer in China lags far behind that of the United States, Europe, Japan and South Korea.In addition, the level of beer consumption in China is very uneven. First, there is a great disparity between the eastern and western regions; second, the level of beer consumption in urban areas is high while that in rural areas is low.
Beer production in China fell by 0.96 per cent in 2014, the first negative growth in more than two decades.From 2015 to 2017, industry output declined year by year.After the adjustment in the first four years, beer production increased slightly by 0.5% from January to July 2018.On the whole, China’s beer consumption from the growth period, into the mature period.The growth of China’s elderly population, coupled with policies such as restrictions on drunk driving, the “eight-point regulation” and the clean-up of open-air barbecues, have had an impact on beer consumption in the past few years.It is expected that for a period of time in the future, China’s beer production will remain basically stable.
With the improvement of people’s income, consumer spending habits and consumption structure change constantly, especially the consumer more and more high to the requirement of food safety, product quality, the pursuit of brand is more and more strong, emphasize “senses” type consumption, the pursuit of fashion, health, and individuation, differentiation of newborn group become an important part of beer consumer groups,Domestic beer ton wine income level will be a process of continuous improvement in the future.The increase in revenue per ton of beer means the increase in unit price of beer, including the overall increase in parity unit price and the structural change in the proportion of premium beer.
The increase of beer unit price has a positive impact on the price and gross profit space of beer labels. Especially, high-end beer puts forward higher requirements on the printing technology, anti-counterfeiting technology and design level of wine labels, which brings benefits to high-end printing enterprises.
4. Pharmaceutical, daily necessities, electronic products and other paper packaging market
Pharmaceuticals, daily chemicals, electronic products, food and other industries that need paper packaging are also downstream industries of packaging printing. Among them, high-end cosmetics, electronic products and other industries have gradually increased the demand for the process, quality and technical content of paper packaging, which is increasingly similar to cigarette labels and wine labels.
Market movements in these sectors have generally been in line with the macroeconomic cycle, particularly in retail.Affected by the decline of the national economic growth rate, the growth momentum of consumer goods demand is not strong, but the structural growth of high-end products in various industries, driven by the goal of doubling the income of residents, still has great potential.
In addition, influenced by new business models such as e-commerce and the Internet of Things, logistics packaging, new commodity packaging and printing processes have brought new demands.In 2018, China’s Internet of Things, cold chain logistics and other fields will further develop and improve, China’s frozen food, normal temperature food, raw and auxiliary ingredients and other goods online shopping will continue to maintain a rapid growth trend, and will continue to bring substantial demand growth for the packaging and printing industry.
IV. Competition pattern of packaging and printing industry
The packaging and printing industry in China is scattered and the market concentration is low.Take the paper packaging industry as an example, the CR4 of the paper packaging industry in the United States reaches 70%, the CR2 of Australia and Taiwan reaches 90% and 62% respectively, while the CR10 of the paper packaging industry in China is less than 5%.At present, China’s packaging and printing industry is still in a state of decentralized competition. The total number of enterprises above designated size in the packaging and printing industry increased from 4,321 in 2013 to 5,693 in 2017.Small and medium-sized packaging enterprises are the main market participants, and a few leading enterprises did not occupy a significant dominant position in the packaging printing market.
In general, China’s packaging industry is on the way to packaging power, and the industry competition and many enterprises in the industry, the pattern of intensified competition is very obvious.During the “13th Five-Year” period, the packaging industry will focus on the development of green packaging, intelligent packaging, safe packaging and other six projects, promote the innovative development of the packaging industry, green development, to create an upgraded version of the packaging economy, to achieve the substantial transformation of the industry from large to strong.
From the point of industry development space, still has certain space for development, but from the change of industry competition, especially in the industry the company competition, will form the pattern of competition, some enterprises or will be eliminated, and technical advantages, pay attention to returns to shareholders and to cut into the new packaging technology, to open the market scale will continue to reflect the development of the track.
