The Packaging Equipment Industry Is Improving for a Long Time

Packaging machinery and equipment can be divided into four types. Forming machinery and equipment that provide packaging, such as carton machines, blow molding machines, carton machines and paper bag machines, etc.; packaging equipment such as filling machines in the beverage industry, Sealing machines, carton sealing machines, etc.; labeling machines, balers, and coding machines that perform labeling and coding after the package is packaged; and other auxiliary packaging equipment, such as bottle conveyors, edge banding machines, weighing machine.

Due to the absolute number of the labor force in China and the changes in the internal structure, the labor costs of the manufacturing industry are currently rising, so it is imperative for the entire packaging industry to realize mechanization instead of manual operations. Affected by the stimulus of the downstream market, the output of China's packaging special equipment increased significantly to 214,400 units in 2019. With the support of the huge inventory, the demand for upgrading and transformation of packaging production lines is expected to maintain a steady growth.

In 2019, the main business revenue of the domestic packaging special equipment manufacturing industry was 35.46 billion yuan, of which food, beverages, and medicine were the three main markets with the highest application proportions, accounting for 65% of the entire packaging industry. Due to the low sensitivity of food, beverages and pharmaceuticals to macroeconomic operations, the downstream demand of the packaging industry is generally stable due to the wide distribution of the industry and its own weak cyclical characteristics, and the overall downstream demand structure is stable, especially in the FMCG sector. And the express business has expanded rapidly.

At present, the packaging industry as a whole is showing a development trend of stronger and stronger. The market concentration in wine equipment, dairy equipment, beverage equipment, meat processing, and back-end packaging represented by dairy products, beer, and beverages Has reached a high level.

At present, in addition to corrugated box packaging machinery and some small packaging machinery that have certain scale and advantages, other packaging machinery is almost out of a system and scale. In particular, some complete packaging production lines that are in high demand on the market are almost completely used in the world packaging market. Monopolized by a large packaging machinery company.

In addition, as an important downstream industry in the paper packaging industry, the vigorous development of the express delivery industry has effectively promoted the scale development of the carton packaging industry. In 2020, affected by global public health events, countries will be affected to varying degrees. China took the lead in containing the epidemic, providing important prerequisites for the economy to return to normal, and logistics business gradually returned to normal. In June last year, the total volume of domestic social logistics returned to the same period in 2019. In the first half of the year, despite the negative impact of the epidemic, the growth rate of China's express service business remained at a level of more than 20%. From January to November 2020, China's social logistics totaled 266.2 trillion yuan, a year-on-year increase of 3.0%. Logistics demand has recovered, market vitality has further strengthened, and business revenue growth has accelerated. With the increasing development of the e-commerce market and the gradual strengthening of consumer purchasing power, the express delivery industry market is expected to continue to grow, which will further release the market demand for paper packaging products and promote the industry's further development.

The Growth of Downstream Industry Demand Boosts the Development of the Packaging Industry

Most of the industry belongs to the category of social consumer goods. According to data from the National Bureau of Statistics, the total retail sales of consumer goods in China has increased year by year, from 24.3 trillion yuan in 2013 to 36.6 trillion yuan in 2017. The continuous increase in the demand for consumer goods is an important driving factor for the development of the paper packaging industry.

With the substantial improvement of Chinese people's living standards, the demand structure of consumers is transforming and upgrading, and the demand for packaging products has also been upgraded from the original simple packaging protection function requirements to reflect product quality and consumer grade requirements. The downstream customers of large paper packaging companies are mostly large high-quality customers. Such customers have high brand awareness and strong profitability, and have high requirements for paper packaging quality and supply stability. Under the new consumption trend, downstream customers will inevitably put forward higher product requirements for paper packaging companies, not only requiring paper packaging companies to provide a full range of packaging products, but also requiring paper packaging companies to have product design capabilities and provide printing and packaging services. The ability to advance to the development and design stage of packaging products, through creative design and R&D innovation, to more closely integrate packaging products and end products, improve the quality, functionality and exquisiteness of packaging products, thereby continuously improving downstream end customers The brand image and added value of the product. From this point of view, customer demand in downstream application industries has an important development-oriented role for midstream paper packaging companies, and therefore has a higher bargaining power in the industry chain.

From a long-term perspective, the continuous aging of the population structure and the improvement of per capita education level will have a profound impact on the improvement of the mechanization level of the entire manufacturing industry. At present, China’s express delivery industry and construction industry are still within the scope of labor-intensive industries, and due to the increasing number of people receiving higher education, in fact, low-end manufacturing and construction and machinery manufacturing industries with relatively poor working environments face employment. Difficulty and expensive problem. Therefore, the labor market demand will further drive the upgrading of industry technology and equipment, and promote the acceleration of industry integration, and the demand for packaging machinery and equipment will accelerate the release.

The general direction of the future development of the packaging industry. At present, although Chinese paper packaging companies are still in the exploratory stage to enter the field of smart packaging, they have already achieved initial results in some companies.


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