Market Trends of China Rigid Plastic Packaging Industry
Food Segment Estimated to Have Significant Share in the Market
- USDA data indicates that as urbanization rises and the Chinese middle class expands, there is a surging demand for health-centric foods, including supplements and premium dairy. This trend amplifies the need for rigid plastic packaging solutions, such as jars, bottles, and containers, across the nation.
- China's burgeoning food service sector is fueling a surge in online food delivery services, further driving the demand for rigid packaging solutions, such as trays and containers. China's food delivery market, valued at USD 208 billion in 2023, doubled over the past three years. The fast food sector in China, buoyed by an urbanizing populace and the growing presence of international brands such as KFC, Domino's, and Pizza Hut, has experienced notable expansion.
- China's rising food consumption is linked to its expanding food retail and e-commerce markets. The China Federation of Logistics and Purchasing reported a significant uptick in food consumption in 2023. Retail food consumption hit CNY 72.5 trillion (around USD 1,022.18 billion), marking a 7.66% rise from 2022, fueling market growth.
- In 2023, USDA data revealed that China imported consumer-oriented products worth nearly USD 106.4 billion. To meet its nutritional demands, China turns to the United States for food imports, including beef, pork, and poultry products, which, in turn, amplifies the need for plastic packaging solutions.
Understand The Key Trends Shaping This Market
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Polyethylene (PE) Segment to Register Highest Market Share
- Polyethylene (PE), a highly durable plastic, stands out for its chemical resistance and cost-effectiveness. Derived from petroleum polymers, PE is resilient against environmental hazards. It is categorized into high-density polyethylene (HDPE) and low-density polyethylene (LDPE). HDPE, renowned for its strength and durability, is predominantly used in rigid packaging, especially manufacturing.
- China's booming production of non-alcoholic beverages, including juices, soft drinks, and energy drinks, significantly boosts the demand for plastic packaging solutions. Bottles and jars are in high demand, especially those made from PE and PET. The National Bureau of Statistics in China reported a surge in non-alcoholic beverage production, jumping from 17.87 million tons in March 2024 to 19.54 million tons in June 2024, underscoring the market's growth.
- Leading manufacturers in China, such as Amcor Group GmbH, Berry Global Inc., and Aptar Group Inc., are innovating packaging solutions. The HDPE products cater to the food, beverage, pharmaceutical, cosmetics, and personal care industries. They are recyclable and customizable in colors to meet customer preferences, bolstering the market growth.
- China's escalating plastic production is closely linked to its burgeoning packaging industry and robust plastic exports. As per Plastics Europe, China dominated the scene, accounting for 32% of global plastic production. The National Bureau of Statistics of China highlighted a significant uptick in June 2024, with plastic product production hitting around 6.59 million tons, further fueling market growth.
