China cracks down whip on excess packaging in its CPG industry, says GlobalData

With disposed product packaging being one of the key contributors to domestic consumer waste in China, authorities have begun to clamp down on excessive packaging in the consumer-packaged goods (CPG) industry. These actions clearly indicate the government’s resolve to tackle the issue of consumer waste piling up in landfills and the oceans, says GlobalData, a leading data and analytics company.

Bobby Verghese, Consumer Analyst at GlobalData, comments: “Chinese consumers are growing increasingly concerned about the ecological impact of packaged goods they purchase. However, they are unwilling to let go of the convenience that packaged products offer in modern day lifestyle. Consequently, consumers are demanding that manufacturers and retailers employ minimal and eco-friendly packaging solutions.

“This is reflected in the findings of GlobalData’s Q3 2021 consumer survey, wherein *48% of Chinese respondents perceived lightweight/lower weight packaging to be quite/extremely important factor in a product. With more consumers going green, and packaging laws being tightened, brands are under pressure to adopt sustainable packaging policies.”

In March 2021, the Chinese government mandated express-delivery service providers to strictly adhere to new packaging standards, by transitioning to eco-friendly packaging materials, avoiding excessive packaging, and curtailing the use of fillers and adhesive tape. In August, authorities announced a new mandatory national standard restricting excessive packaging in 31 categories in the food and beverage sector, and 16 categories of the cosmetics sector with effect from September 1, 2023. The new regulations also intend to prevent companies from overcharging consumers for surplus packaging, reducing wastage of resources, and preserving the environment.

Verghese concludes: “The Chinese government is expected to progressively extend such packaging reforms to more areas of the CPG, foodservice, and retail sectors in the coming years. The sweeping packaging regulations will undoubtedly impact the toplines of consumer brands and packaging manufacturers, particularly small-scale players, in the short term. Yet, this will also unlock new opportunities for innovation and employment in green/sustainable packaging.”

*Data taken from GlobalData Q3 2021 Consumer Survey – China (September 2021) with 513 respondents

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