The competitive landscape of the paper packaging industry

February 21, 2025

In terms of market concentration

Overall low concentration: There are over 2000 large-scale production enterprises and numerous small and medium-sized enterprises in China's paper packaging industry, resulting in low industry concentration. According to the "2023 Top 100 Chinese Printing and Packaging Enterprises Ranking" by "Printing Manager", the top 5 companies in the paper packaging industry in 2023 have a market share of 6.10% for Yutong Technology, 5.73% for Hexing Packaging, 2.56% for Shengxing Group, 1.95% for Zijiang Enterprise, 1.65% for Xiamen Baofeng, and only 18% for CR5.

There is a significant gap compared to overseas markets: the overseas paper packaging market is more mature, with CR4 reaching 70% in the United States and CR2 reaching 90% in Australia in 2018. There is great potential for increasing market concentration in the Chinese paper packaging industry.

In terms of corporate competition

Forming a competitive echelon: In the high-end field, Yutong Technology has an advantage in electronic consumption and high-end cosmetics packaging, while Jinjia Group has an advantage in high-tech and high value-added cigarette labels, famous and special wine box packaging, etc; In the fields of mid to low end industrial packaging and low-end commercial packaging, many small and medium-sized enterprises compete fiercely, mainly focusing on the production of low profit large-scale basic products.

The leading advantages are gradually emerging: Leading enterprises such as Yutong Technology and Hexing Packaging have advantages in cost, service, and other aspects, and can provide high-quality and competitive products with economies of scale and supply chain advantages.

In terms of regional distribution

Uneven distribution: Paper product packaging enterprises are mainly concentrated in Guangdong, Zhejiang, Jiangsu, Shandong and other regions. There are numerous enterprises in the paper product packaging industry in Guangdong Province, with over 20000 as of March 2023, represented by companies such as Jinjia Group, Meiyingsen, Yutong Technology, and Wanshun New Materials.

Inland extension trend: With the development of the economy and the improvement of residents' consumption levels in inland areas, there is a trend for industries to extend to inland regions such as Central China and Southwest China.

In terms of competitive pressure

Potential entrant threat: Due to the relatively low entry threshold of the paper packaging industry, especially in the mid to low end sector, potential entrants pose a greater threat.

Threat of substitutes: The emergence of biodegradable materials and other new packaging materials poses a certain substitution threat to paper product packaging.

Supplier and buyer bargaining power: Suppliers and buyers have strong bargaining power, and suppliers can have an impact on the cost of paper packaging enterprises when raw material prices fluctuate. Downstream customers, due to their diverse demands and a large number of available suppliers, also have strong bargaining power in terms of price, service, and other aspects.

Author:

Mr. zhang

E-mail:

371483198@qq.com

Phone/WhatsApp:

13858722313