Market Trends of China Paper Packaging Industry
Corrugated Boxes Holds Largest Market Share in the Product Type Segment
- The growing urban population, dropping pulp prices, developing e-commerce package industry, and improving population awareness about environment-friendly packaging are expected to propel the Chinese paper packaging market. The industry's key trends and developments are increased containerboard capacity and technological breakthroughs.
- As a result, new packaging materials, processes, and forms are required. Over the projection period, the rise of e-commerce behemoths like Alibaba is expected to fuel the corrugated packaging market.
- Cardboard boxes are safer for the environment than plastic or Styrofoam non-degradable and non-recyclable packaging. An increase in the domestic and international demand for electronic goods, automotive components, home care, and beauty and personal care products, coupled with China's recent government-implemented packaging guidelines, is expected to boost demand for corrugated boxes, resulting in market expansion in the upcoming years.
- With a significant rate of imports and exports, China is one of the largest trading countries in the world. Also known as the world's factory, the country's export trade for manufactured goods is again rebounding after a sudden stagnation for a brief period. With the continued growth in the export trade, the market would witness robust demand for bulk and sturdy corrugated boxes for tertiary packaging.
- Since corrugated boxes, widely used for tertiary packaging, provide a means of protecting, handling, storing, and transporting several sales units to organize everything into unit loads during transit, it is more commonly used by export firms that need to protect their products for export materials with strong layers of packaging.
Understand The Key Trends Shaping This Market
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Personal Care to be the Fastest Growing End-user Industry
- The personal care market in the country has been one of the fastest-growing sectors, benefitting from an increasingly committed consumer base and boosting the growth of the market studied. Consumer spending on personal care products continues to increase, enabling the trend toward adopting processed, packaged, and expensive products. Skincare and decorative cosmetics are growing, with facial care and medical skincare witnessing a strong demand. Moreover, demand for anti-aging products and those intended to protect against environmental pollution drive the market.
- According to the National Bureau of Statistics of China, the retail trade revenue of cosmetics in China was CNY 45.08 billion (USD 6.26 billion approximately) in June 2023, reaching CNY 54.85 billion (USD 7.62 billion approximately) in November 2023. The growth of the personal care sector in China implies a potential increase in the sales of cosmetic products. As a result, the demand for packaging materials, such as paper packaging, is likely to experience an uptick to meet the requirements of the expanding market.
- The need for improved skin health and appearance has become a priority for many consumers, resulting in a surge in demand for skincare products. Skin care providers are expanding their business by opening new facilities nationwide. For instance, in November 2023, Nu Skin Enterprises opened a manufacturing facility in Shanghai, China. The US multilevel marketing company, whose brands include Nu Skin, Pharmanex, and ageLOC, stated that the USD 55 million facility would increase its production capacity and supply chain in China and other Asian markets. Increased demand for skin care products drives the paper packaging market in the country.
- According to SEO Agency China, in July 2023, the country's e-commerce market was one of the largest globally, with many online sales annually. This presents significant opportunities for international brands to tap into China's booming e-commerce market. Capitalizing on this growing interest in natural and organic beauty products, highlighting the brand's dedication to sustainable practices, using natural ingredients, and creating environmentally friendly packaging is expected to drive the market's growth.
