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China Plastic Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

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  • 105 Pages
  • April 2023
  • Region: China
  • Mordor Intelligence
  • ID: 5459094
UP TO OFF until Sep 30th 2023
The Chinese plastic packaging market is expected to grow at a CAGR of global 3.5% over the forecast period. The increasing demand from the food and beverage industries primarily drives the rapid demand for flexible and rigid plastic packaging products in China. There has been an impact of the Russia-Ukraine war on the overall packaging ecosystem.

Key Highlights

  • Demand for polyethylene terephthalate (PET) plastic bottles for the packaging of bottled water, juices, soft drinks, medicines, household cleaners, and personal care products is a significant factor driving the plastic packaging market's growth.
  • Furthermore, the trend toward healthy living is gaining momentum in China. As a result, customers in China are inclined towards preferring beverages that promote a better lifestyle, with nutritional value playing a crucial role in the choice of the product. Therefore, milk and protein beverages have enjoyed an increase in popularity.
  • Due to expanding consumer preference for online shopping, the proliferation of payment options, and online shopping events, including single-day offers, enticing discounts, and enhanced logistic infrastructure, the e-commerce sector is expanding rapidly in the country, contributing significantly to the market. However, the introduction of regulations on the use of single-use plastic packaging due to growing concerns about environmental pollution by the government is restricting the growth of the plastic packaging market.
  • The COVID-19 outbreak has had a mixed impact on the plastic packaging industry in China, as the lockdown resulted in supply chain disruption that affected the manufacturing industry. Significant shifts in consumer behaviors led to an increase in the food service market and beverage consumption, especially carbonated drinks, and the water segment registered faster growth, contributing to plastic packaging.
  • The Russia-Ukraine war has resulted in a decrease in the imports of a considerable amount of PE plastic from Russia, which has been affected due to the invasion impacting the plastic packaging in China.

China Plastic Packaging Market Trends

E-commerce Industry is Driving the Market

  • To reduce transportation costs, e-commerce enterprises prefer lightweight and flexible packaging solutions. The increased popularity of online shopping for regular fresh foods, FMCG products, electronics, and clothing is likely to propel the plastic packaging market.
  • The e-commerce boom in China has compelled packaging companies and resellers to explore sustainable packaging alternatives, including recycled plastics. Such initiatives will likely boost different types of plastic packaging used for e-commerce in the coming years.
  • Moreover, with the growing usage of plastic packaging in the e-commerce sector, players like Alibaba and JD.com have launched various recycling efforts. For instance, Unilever and Alibaba Group launched the 'Waste Free World' Initiative in March 2021, a first-of-its-kind AI technology-driven closed-loop plastic recycling system in China. Unilever will merge its packaging technologies with Alibaba's business operating system as part of the partnership to encourage consumers to adopt recycling of waste.
  • China has the most online buyers and sellers worldwide, aided by being the world's most populous nation. According to the China Internet Network Information Center, at the end of 2021, it had 842.1 million online consumers, more than twice the US population, which is the next largest e-commerce market. Such rapidly growing sales through e-commerce platforms in the country positively support the market growth with flexible packaging demand.

Bottles are Observing Significant Increase

  • Among the most commonly used beverage bottles, plastic bottles are some of the most common types used by beverage manufacturers. PET is a popular choice for plastic bottles due to its good strength-to-weight ratio, cost reduction, and transportation savings compared to glass counterparts, and its safety and reliability for consumer products. Considering the manufacturing process, PET is engineered to be a strong yet pliable material that enables its use in different plastic bottles. Additionally, its recyclability and the ability to customize it with various colors and designs make it a popular choice.
  • Manufacturers are witnessing the expansion in the use of plastic bottles and increasing demand for them in some sectors. Among significant beverage categories, carbonated soft drinks (CSD) and water grew faster than the others, driven by senior consumers and higher income groups. The most growth in beverage servings was seen in entertainment, vendor/drink station, and coffee/bakery channels during 2021.
  • The primary beverage producers in China registered double-digit growth in the year 2021. For instance, according to the Ministry of Industry and Information Technology, in 2021, major beverage producers in China saw their output rise 12% yearly to over 183 million tonnes.
  • Moreover, beverage manufacturers are expanding their business in China to fulfill the increasing demand for soft drinks. For instance, in October 2021, Swire Coca-Cola Ltd, a bottler of Coca-Cola beverages, announced the investment of more than CNY 5.5 billion (USD 854 million) in factory infrastructure in China in the next five years and planned to expand nearly 20 production lines to cash in on the rapid growth of its businesses in China. Such beverage manufacturing investments are further adding demand for rigid plastic packaging products.

China Plastic Packaging Market Competitor Analysis

The Chinese plastic packaging market is fragmented in nature. Leading market players are constantly upgrading their product portfolios. They are undergoing various organic and inorganic strategies such as mergers and acquisitions, partnerships, expansion, new product launches, and collaborations to dominate the market.
  • August 2022: Amcor PLC acquired a world-class flexible packaging plant in the Czech Republic and expanded its Innovation Center Network with a new facility in Jiangyin, China. This location helps the company boost the supplier’s ability to meet strong demand and customer growth across its European network.

Additional benefits of purchasing the report:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

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Table of Contents

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
4.1 Market Overview
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5 Assessment of the Impact of COVID-19 on the Market
6.1 Market Drivers
6.1.1 Growing Demand from E-commerce Industry
6.1.2 Increasing Adoption of Lightweight-packaging Methods
6.2 Market Challenges
6.2.1 Rising Adoption of Alternative Packaging Solutions
6.2.2 Growing Environmental Concerns due to Plastic
7.1 By Packaging Type
7.1.1 Flexible Plastic Packaging
7.1.2 Rigid Plastic Packaging
7.2 By Product Type
7.2.1 Bottles and Jars
7.2.2 Trays and containers
7.2.3 Pouches
7.2.4 Bags
7.2.5 Films & Wraps
7.2.6 Other Product Types
7.3 By End-User Vertical
7.3.1 Food
7.3.2 Beverage
7.3.3 Healthcare
7.3.4 Personal care and Household
7.3.5 Other End-User Verticals
8.1 Company Profiles
8.1.1 Amcor Plc
8.1.2 Berry Global
8.1.3 Tetra Laval
8.1.4 Sonoco Products Company
8.1.5 Wipak Ltd
8.1.6 Sealed Air Corporation
8.1.7 Silgan Holdings
8.1.8 Logos Pack
8.1.9 Jieshou Tianhong New Material Co. Ltd
8.1.10 Qingdao Haoyu Packing Co. Ltd

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Amcor Plc
  • Berry Global
  • Tetra Laval
  • Sonoco Products Company
  • Wipak Ltd
  • Sealed Air Corporation
  • Silgan Holdings
  • Logos Pack
  • Jieshou Tianhong New Material Co. Ltd
  • Qingdao Haoyu Packing Co. Ltd