October 28, 2024 – China’s plastic flexible packaging industry, with over 50 years of development, has emerged as a pivotal player in the packaging sector. Dominated by plastic films since its inception in the late 1970s, the industry has swiftly secured a leading position in the domestic market. Today, plastic films are not only extensively utilized in food, daily chemicals, pharmaceuticals, and other sectors but are also driving innovation and growth within the packaging industry.
The dawn of China’s flexible packaging industry can be traced back to the late 1970s, marked by the introduction of Swedish Tetra Pak packaging equipment by a canned food factory in Guangdong. This marked the beginning of a new era for the domestic flexible packaging market. With the surging market demand, the industry flourished, gradually forming packaging and printing hubs in the Pearl River Delta, Yangtze River Delta, and Beijing-Tianjin-Hebei regions. These areas not only exhibit prominent industrial agglomeration effects but are also home to renowned printing and packaging industrial parks such as Anbu Town in Shantou and Longgang Printing City in Wenzhou.
According to AsiaMB’s insights, China’s packaging industry has witnessed continuous expansion in recent years, with an increasing number of enterprises. Data from the China Packaging Federation reveals that the number of packaging enterprises above a certain size reached 10,632 in 2023, accompanied by a steady growth in operating revenue. Amid the diversified development of the packaging industry, plastic and paper packaging occupy a dominant position, with plastic films leading the pack. However, the rapid expansion of production capacity has led to an oversupply in the market, resulting in declining product prices and compressed profit margins.
The plastic film industry boasts a complex supply chain and a diverse product range, encompassing films made from resins like polyvinyl chloride and polyethylene, to high-performance films like biaxially oriented polypropylene (BOPP) and polyester (BOPET). These films find widespread applications in packaging and industrial fields. Nevertheless, intensifying market competition has posed severe challenges to the profitability of the plastic film industry. Data from Zhuochuang Information indicates that the price center of gravity for plastic film products has been continuously shifting downwards in recent years, adversely affecting profitability.
In response to this situation, China’s plastic film industry is actively pursuing a path of transformation and upgrading. On one hand, enterprises are enhancing product value and market competitiveness through technological innovation and product development. On the other hand, the industry is strengthening supply chain integration and collaborative development to propel the industry towards high-end and green directions. Meanwhile, with the continuous commissioning of new production capacities and the gradual optimization of regional distribution, the future development of China’s plastic film industry remains promising.