Consumer Packaging Industry Analysis in China

An Overview of the Consumer Packaging Industry in China from 2024 to 2034

The consumer packaging industry in China is estimated to be valued at US$ 105.5 billion in 2024 and is projected to reach US$ 162.7 billion by 2034. Sales revenue is anticipated to expand at a CAGR of 5.7% over the forecast period. The overall industry size of consumer packaging in China was valued at over US$ 100.8 billion at the end of 2023.

Key Industry Attributes

Factors Driving the Demand for Consumer Packaging in China

• Consumer packaging in China is experiencing increasing demand owing to the rising adoption of eCommerce platforms, with online shopping becoming increasingly popular. This surge in digital retail has necessitated robust packaging solutions to ensure the safe and secure delivery of products to consumers.
• The industry is benefiting from the growing purchasing power of the population, as rising disposable incomes enable consumers to afford a wider range of packaged goods.
• The consumer packaging industry in China is witnessing considerable growth due to increased awareness of hygiene and safety concerns among consumers. The adoption of secure and tamper-evident packaging is becoming more prevalent in the country as a result.
• Government initiatives promoting sustainable practices within the consumer packaging sector are also aiding the exponential expansion of the industry in the country.
• The industry in China is heavily reliant on the performance of the food and beverage sector. With the rise in the overall packaged food industry, the demand for consumer packaging in China is experiencing a surge as well.

Consumption Analysis of Consumer Packaging in China

• In China’s consumer packaging industry, there is a noticeable trend toward packaged snacks. This shift is driven by consumers who are showing a growing preference for convenient, on-the-go options.
• The food and beverage industry is also adapting to the rising preference for ready-to-eat meals. This has led to an increased demand for consumer packaging in China.
• Within China’s cosmetics industry, there is an appreciable adoption of sustainable packaging solutions. This is due to the growing environmental consciousness among consumers.
• The demand for specialized packaging in the pharmaceutical industry is growing among health-conscious consumers who seek safety and information transparency.
• As the demand for smart home products continues to rise, the home and garden products sector is experiencing a corresponding increase in demand. This trend has simultaneously created a demand for innovative and protective consumer packaging solutions to satisfy consumer requirements.

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Factors Adversely Affecting the Consumer Packaging Industry in China

• Environmental regulations from governments and eco-conscious consumers, along with the rising awareness of sustainable practices, are the prime hurdles in front of the companies involved in this industry.
• The industry also faces intense competition from both domestic and international companies. This is leading to lower profit margins and a continuous need for innovation. This puts tremendous pressure on companies with budget constraints.
• The industry is also reliant on the performance of consumer goods. Any fluctuations in this significantly impact the consumer packaging industry.
• The rapid technological advancements, particularly the emergence of alternative packaging solutions and 3D printing, present a challenge for the consumer packaging industry in China. These innovations offer businesses and consumers new options that can divert their attention away from traditional packaging methods.

Category-wise Insights

Plastic Material to Dominate the Consumer Packaging Industry in China despite Environmental Concerns

Based on the material type, the plastic segment is anticipated to hold over 55% of the industry share in 2024 despite the environmental impact of plastic and the stringent regulations and policies against it.

• The demand for plastic packaging of consumer goods is soaring in China as it offers lightweight, durable, and flexible solutions that keep the product protected from moisture, temperature, and UV exposure.
• Manufacturers in China also prefer plastic packaging as it provides a cost-effective choice due to its affordability, ease of production, and versatility.
• Plastic materials also offer a high level of flexibility, allowing manufacturers to create unique and visually appealing packaging designs.

Rigid Packaging Format is Set to Lead China’s Consumer Packaging Industry

The rigid packaging format is expected to register a CAGR of 5.6% over the forecast period. This increased demand is attributed to:

• The demand for rigid packaging solutions in the Chinese consumer goods industry is skyrocketing as manufacturers aim to convey a sense of luxury and sophistication. Key players in the industry curate premium packaging designs to attract a young demographic with their rigid packaging solutions.
• With growing environmental awareness, manufacturers are opting for rigid packaging materials as they are often recyclable or reusable. This attracts a substantial number of eco-conscious consumers and businesses to the segment.

Competitive Landscape

The consumer packaging industry in China is highly competitive, with several key players operating in the industry. These key players offering consumer packaging in China are trying to focus on increasing their production capacity.

This is in response to the consistent demand for such packaging from several end-use industries and the growing demand from the services sector. They are also expanding their product portfolio to cater to the growing demand for sustainable packaging products.

Key Players Offering Consumer Packaging in China

• Amcor Plc.
• Berry Global Company
• Crown Holding
• Stora Enso Oyj
• Nine Dragons Papers
• Shanghai Zijiang Holdings
• 3M Company
• Oji Holding Corp.
• CPMC Holdings Ltd.
• Plastipak

Recent Developments

• In June 2023, Dow and Procter & Gamble China unveiled an innovative air capsule eCommerce packaging, combining Dow's high-performance PE resins with P&G China's innovation. This sustainable solution aims to effectively protect products, minimize packaging waste, and enhance recyclability in the eCommerce sector.
• In February 2023, Mars Wrigley China marked a milestone by unveiling its inaugural fully post-consumer recycled PET (rPET) packaging for the Cui Xiang Mi chocolate brand. The 216g canister, composed entirely of rPET, aims to enhance sustainability, with an estimated annual saving of 36t of virgin plastic.
• In December 2022, Amcor Plc. announced the opening of its newly constructed manufacturing facility in Huizhou, China. The company invested around US$ 100 million in the plant, which measures around 600,000 sq. ft, making it the largest flexible packaging plant in the country.
• In November 2022, Nine Dragons Paper Holdings announced a plan to invest in capacity expansion, which is going to allow the company to increase the manufacturing capacity of its Virgin carton board by almost 5 million tons.

Scope of Report

Consumer Packaging Industry in China by Category

By Packaging Format:

• Flexible Packaging
  • Pouches
  • Bags & Sacks
  • Films & Wraps
  • Sachets
  • Stick Packs
  • Cups
  • Tubes
  • Labels
  • Clamshell
• Rigid Packaging
  • Trays
  • Blisters
  • Tubs and Lids
  • Caps & Closures
  • Pump & Dispensers
  • Boxes
  • Cartons
  • Bottles and Jars
  • Cans
  • Cores & Tubes

By Material:

• Plastics
  • Polyethylene
    • HDPE
    • LDPE
    • LLDPE
  • Polypropylene
  • PET
  • PVC
  • Nylon
  • EVOH
  • Polystyrene
  • Post-Consumer Recycled (PCR)
  • Bioplastics
    • PLA
    • Starch-based Plastics
    • Bio-PET
    • Bio-PE
    • Others
• Paper
• Aluminum Foil
• Wood
• Metal
  • Aluminum
  • Tin
  • Steel

By Technology:

• Injection Molding
• Thermoforming
• Blow Molding
• Other Technologies
• Extrusion

By Level of Packaging:

• Primary
• Secondary
• Tertiary

By End Use:

• Food
  • Bakery & Confectionaries
  • Dairy Products
  • Baby food
  • Edible Oil
  • Meat Poultry seafood
  • Snacks
  • Spices & Condiments
  • Fruits and Vegetables
  • Pet Food
  • RTE Food
  • Pulses and Cereals
• Beverage
  • Alcoholic
    • Beer
    • Wine
    • Spirits
    • Other Alcoholic Beverages
  • Non-Alcoholic
    • Fruit Juices
    • Carbonated drinks
    • RTD beverages
    • Bottled Water
    • Tea & Coffee
    • Milk Products
• Personal care & Hygiene
  • Skincare
  • Haircare
  • Makeup
  • Fragrance
  • Nailcare
• Homecare & Toiletries
  • Toiletries
  • Laundry Care products
  • Personal Hygiene
  • Air Fresheners
• Pharmaceuticals
• Consumer Electronics
• Medical Devices

By Distribution Channel:

• Online
• Offline