Market Trends of China BOPP Film Industry
This section covers the major market trends shaping the China BOPP Film Market according to our research experts:
Growing Demand of Flexible Packaging
- Owing to their advantageous features and low price, BOPP films are utilized in food packaging and are replacing cellophane in applications like snack and cigarette packaging. Many different uses fall under the packaging category, including those for non-alcoholic drinks and the food industry. For instance, according to the stats published by Banco do Nordeste, the annual consumption of non-alcoholic beverages in China has been increasing since 2011, and it reached 104.38 billion liters in 2021. The increasing demand for beverages is anticipated to propel the demand for BOPP film in the expected time frame.
- Also, changes in packaging styles, innovations in flexible packaging designs, and increased demand for personal care products owing to the rise in the young population preferring its use are expected to drive the market for BOPP films in China. Also, manufacturers are investing in opening production sites to cater to the increasing demand for BOPP films. For instance, in June 2022, Fujian Forop Advanced Materials, one of the manufacturers and sellers of BOPP film products in the Chinese market, means to start two new production sites in southeast and southwest China by 2025, leading to six production sites with 30 BOPP production lines. This industrial development will boost the company's production potential, which intends to become the world's largest producer of BOPP film.
- Additionally, the need for flexible packaging is mainly driven by health considerations, as consumer knowledge of packaging solutions and their health advantages is rising. Moreover, the country's growing dependence on prepared and ready-to-eat foods has raised the need for flexible packaging, particularly in the snack market.
Understand The Key Trends Shaping This Market
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Growing Demand for Packaged Food
- One of the industries with the fastest growth, particularly in China, is packaged or ready-to-eat food. The accelerated pace of urban life and the sharp increase in wealth and standard of living drive the use of packaged foods.
- Retail establishments in China generate revenue from retail sales of food products. Flexible packaging products like BOPP films have become the preferred packaging in the area because of their versatility, ability to be tailored, efficacy in protecting resources, and sustainability. They also provide consumers with a comfortable shopping experience by making it easier to move the products because of their small weight.
- For instance, according to the National Bureau of Statistics of China, online retail sales of physical goods in China increased from CNY 10.8 trillion (~USD 1.54 trillion) in 2021 to CNY 5.48 trillion (~USD 780 billion) in 2017. Online retail sales have been growing steadily in the past six years in China, which is anticipated to boost the growth of BOPP film packaging in the forecast time.
- Additionally, the retail sales value of packaged food is expected to grow in the country and is projected to reach USD 366.7 billion in 2025. According to Agriculture and Agri-Food Canada, retail sales of packaged food in China were USD 284 billion in 2020. It is projected to grow at a CAGR of 5.3 % and reach USD 366.7 billion in 2025 from USD 298.01 in 2021.
