The packaging industry in China is forecast to reach 131.5 billion units in 2025, growing at a compound annual growth rate (CAGR) of 2% over the forecast period 2020-2025, driven by growth in the rigid plastics packaging, says GlobalData, a leading data and analytics company.

GlobalData’s report, ‘China Packaging Industry – Market Assessment, Key Trends and Opportunities to 2025’ reveals that rigid plastics packaging is forecast to register the fastest volume CAGR of 3% during 2020-2025. Rigid plastics was the most consumed pack material in the Chinese packaging industry and accounted for a market share of 27.1% in 2020. It is closely followed by paper & board, which is projected to record a CAGR of 1.1% over the forecast period.

Monika Bargla, Consumer Analyst at GlobalData, says: “With growing environmental consciousness among the consumers and with the government of China planning to ban single-use plastic by 2022, an increasing number of manufacturers are launching FMCG products with sustainable packaging.”

For instance, Jiangsu Best Coffee Intelligent Technology Co., Ltd., recently launched an instant oat beverage under the Saturnbird Coffee Super Oat+ banner in a bottle made from 100% recyclable material to help the brand improve its environmental footprint and engage ethically conscious consumers.

Ms Bargla continues: “In addition, as the desire for more bespoke products grows, personalized packaging for specific customer segments, such as children, is becoming popular in China. As a result, more brands are introducing targeted packaging to appeal to their audience.”

The packaging industry in China is characterized by its strong use in the food industry, which accounted for a 46.1% volume share in 2020. It was followed by non-alcoholic beverages and ‘other industries’ with shares of 23.1% and 16%, respectively.

Non-alcoholic beverages industry was leading in terms of usage of rigid plastics, with a share of 55.9% in 2020. It was followed by food industry which accounted for a share of 40.4% in the same year.

Ms Monika concludes: “Growing economy and rising disposable incomes are enabling Chinese consumers to splurge on premium offerings which offer an indulgent consumption experience. Brands are thus capturing this desire to indulge by launching high-quality products with unique and unusual packaging formats which lend a sophisticated look to the product. Moreover, the use of stylish packaging helps raise the profile of these premium offerings often acting as a status symbol.”