The market size of paper product packaging continues to expand, and the market landscape is relatively fragmented

According to the "Market Monitoring and Future Development Prospects Research Report on China's Paper Packaging Industry" released by Heshi Consulting Group, the market size of China's paper packaging industry has continued to expand in recent years. In 2023, the total output value of the paper product packaging and printing industry will reach 6.1 trillion yuan, and the market size will reach 7.8 trillion yuan. With the development of e-commerce and other industries, the industry maintains a stable growth trend.

There are numerous enterprises in the industry, with small and medium-sized enterprises accounting for over 60%. The market concentration is relatively low, with a CR5 market share of only about 15% and a CR10 market share of only about 20%. But large enterprises, such as Shengda Group and Hexing Packaging, occupy a certain share in the mid to high end market with their technological and financial advantages.

The concentration of the upstream paper industry in the industrial chain is relatively high, and large enterprises such as Nine Dragons Paper have strong bargaining power, which makes it easy to transfer the risk of raw material prices to downstream packaging enterprises. The downstream application fields are extensive, covering multiple industries such as food, beverage, home appliances, consumer electronics, etc. The demand is scattered, and the requirements for the supporting service capabilities of packaging enterprises are high.

In November 2024, the prices of corrugated paper and box board paper increased. The average market price of AA grade 120g corrugated paper was 2703.75 yuan/ton, an increase of 1.41% from the beginning of the month. The average market price of box board paper was 3626.6 yuan/ton, an increase of 0.31% from the beginning of the month, mainly influenced by macro policies, price increases in large paper mills, and trends in the waste paper market.

In addition, the booming development of e-commerce and express delivery industries has driven the growth of demand for paper packaging such as cardboard boxes; Consumers' demand for environmental protection, personalization, and exquisite product packaging has increased, prompting enterprises to engage in technological innovation and product upgrades; The application of new technologies such as digital printing can achieve rapid order change printing, shorten production cycles, reduce inventory costs, improve production efficiency, and enhance enterprise competitiveness; The country's emphasis on environmental protection has highlighted the advantages of paper packaging as an environmentally friendly packaging material.

Industry analysts from Heshi Consulting Group stated that the competition in the industry is fierce, and small and medium-sized enterprises are facing significant pressure; There is a gap between the production technology of some high-end products and the international advanced level, and research and development investment needs to be increased; The fluctuation of raw material prices increases the difficulty of cost control for enterprises; International trade frictions may affect the export market for paper product packaging.