18 Dec 2020
Posted in Packaging
China’s packaging market to reach 1,004.9 billion units at 1.8% CAGR in 2024, says GlobalData
Consumers are preferring and picking the time-saving and convenient options in food and drinks, which is driving the demand for innovative packaging options. The packaging sector in China is expected to reach 1,004.9 billion units in 2024, at a compound annual growth rate (CAGR) of 1.8% during 2019-2024, says GlobalData, a leading data and analytics company.
GlobalData’s report, ‘China Packaging Industry- Trends and Opportunities’, reveals that the sector is majorly driven by growth in the rigid metal packaging, which is forecast to register the fastest volume CAGR of 5.9% during 2019-2024. The category is followed by rigid plastics, which is expected to record a CAGR of 2.8% during the next five years.
Anchal Bisht, Consumer Analyst at GlobalData, says: “Busier lifestyles along with long working hours among the Chinese consumers is leading to a substantial rise in demand for time-saving, convenient, and easy-to-carry options in food and drinks. Factors such as strong built, recyclability and convenience are driving the usage of rigid metal packaging in alcoholic and non-alcoholic beverages.”
Rigid plastics was the most consumed pack material in Chinese packaging industry accounted for a market share of 28.7% in 2019. It is expected to reach 30.1% by 2024. Flexible packaging and paper & board were the other popular pack materials.
Food industry characterized the most use of packaging in China and accounted for 43.2% market share. It was followed by non-alcoholic beverages and other industries with shares at 23.9% and 17.1%, respectively.
Non-alcoholic beverages industry was leading in terms of usage of rigid plastics, with a share of 56.2% in 2019. It was followed by food industry which accounted for a share of 40.3% under rigid plastic packaging in the same year.
Ms Anchal concludes: “The ongoing sustainability issues have shifted consumer focus towards a green lifestyle which is boosting the demand for recyclable packaging materials. Furthermore, as the trend towards leading a healthy lifestyle gains traction, Chinese consumers are focusing on moderating consumption of food and beverages, driving popularity of smaller pack sizes, thus offering ample growth opportunities for the sector growth.”