Market Trends of China Plastic Packaging Industry
Food Industry is Expected to Dominate the Market
- In 2023, China's gross domestic product (GDP) reached USD 17.52 trillion (126.06 trillion yuan), marking a year-on-year increase of 5.2%, as reported by the National Bureau of Statistics (NBS). The United States Department of Agriculture (USDA) highlighted that China, the world's largest food-importing nation, saw its total food import value exceed USD 140 billion in 2023.
- Shifting consumer preferences in China, especially the rising trend of packaged foods, are driving an increased demand for plastic packaging. The USDA notes that a significant trend in China's food market is the burgeoning e-commerce sector. Forecasts suggest that China's food e-commerce market will hit USD 148 billion in 2024, further fueling the demand for rigid plastic packaging solutions.
- Moreover, China's food service industry made a strong comeback in 2023, particularly in the prepared food segment. The uptick in on-the-go food consumption has spurred using rigid and flexible plastic packaging solutions. This trend is further amplified by the booming takeaway food industry in China, leading to a heightened demand for plastic packaging.
- China's food imports encompass a range of consumer-oriented products, including dairy, processed foods, and meat, with a notable emphasis on beef. USDA data reveals that in 2023, China's imports of these consumer-oriented products totaled USD 106.4 billion. Key exporters to China, New Zealand, Thailand, Brazil, and the United States each holding a 10-12% share, play a pivotal role in driving the nation's demand for plastic packaging.
Understand The Key Trends Shaping This Market
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Bottles and Jars Segment to Register Highest Market Share
- Polyethylene terephthalate (PET), polypropylene (PP), and polyethylene (PE) are the primary materials used in the production of plastic bottles and jars for packaging solutions. These materials are lightweight and unbreakable, enhancing their ease of handling. In China, the food and beverage industry's surging demand for bottles and jars is rapidly boosting the need for rigid plastic packaging. Specifically, the rising use of PET bottles for packaging bottled water, juices, soft drinks, medicines, household cleaners, and personal care items is a key driver of the plastic packaging market's expansion.
- China's burgeoning pharmaceutical sector is increasingly turning to PET bottles and containers for packaging, further fueling this segment's growth. Data from Policy Circle, a media platform, highlights that in 2023-24, China constituted 43.45% of India's pharmaceutical imports, underscoring the heightened demand for plastic packaging solutions.
- In response to the rising consumer preference for recyclable and reusable packaging, Chinese manufacturers such as Amcor Group prioritise launching sustainable rigid packaging solutions, including beverage bottles. In April 2024, Amcor Group, a Switzerland-based entity with a footprint in China, unveiled a one-liter PET bottle crafted entirely from 100% post-consumer recycled (PCR) content, specifically designed for carbonated soft drinks.
- As a leading hub for plastic product manufacturing, China has seen significant production milestones. ChemAnalyst reported that in December 2023, China's plastic product output reached around 6.98 million tons, marking a 2.8% increase from the previous year. Notably, China exports its plastic products, especially bottles, to the United States and several Asian nations, including Australia, Malaysia, and Japan.
