Corrugated carton industry is scattered, increasing concentration and policy orientation

As of October 2015, there are still more than 2,000 companies in the industry. The market share of SMEs exceeds 90%, and the concentration of large enterprises is relatively low. This phenomenon of SMEs occupying most of the market is caused by three reasons:

(1) The threshold for industry entry is low: Due to the regional characteristics of the paper packaging industry, local small businesses rely on relatively low prices and strong local order acquisition capabilities to expand their business space. A large number of third-tier plants pass outsourcing cardboard and small equipment. Box-making method for production. Due to the low capital and technical barriers required for small devices, a large number of small businesses in the industry exist for a long period of time and occupy most of the market share.

(2) Small-sized enterprises have a certain cost advantage for a long time: Before the environmental protection becomes stricter and the supply-side reforms are implemented, there are a large number of small enterprises in the corrugated board industry in the upstream boxboard, and the low price of small-carton plant through the procurement of small paper mills with relatively low quality standards. Paper products achieve cost advantages.

(3) The large number of small batches and individualized orders in the industry provide convenience for the production and use of small-sized equipment. Smaller shipping radius provides local enterprises with certain advantages in obtaining orders.

Small and medium-sized packaging plants occupy most of the paper packaging market


Different from the extremely fragmented industry pattern in China's paper packaging industry, international experience shows that the paper packaging industry in developed economies is highly concentrated. The corrugated packaging industry in the United States has matured. After 30 years of development, it has established a stable market structure. In the development of the paper packaging industry in the United States, environmental protection, diversification, soft packaging and promotion are the four major trends. In the process of environmental protection, technological development and improvement of production equipment are required by packaging companies. Continuously improve, weed out a lot of backward production capacity. Technological innovation has always been the center of the development of American paper packaging companies. Large-scale enterprises can take advantage of technological improvements to reduce production costs.

According to statistics from the World Packaging Organization, the top five companies in the US paper packaging market accounted for more than 70%, and the top two paper packaging in Australia exceeded 90%. In contrast, the market share of China's large corrugated paper packaging industry is extremely low. Take the listed companies Hexing Packaging and Meiying Sen as examples. In 2016, Hop Hing’s packaging revenue accounted for only 1.05% of the industry’s total revenue. The proportion is only 0.32%. With the trend of environmental protection and technology improvement, there is sufficient momentum for the promotion of industry concentration.


From the perspective of industrial policy, on December 6, 2016, the Ministry of Industry and Information Technology and the Ministry of Commerce issued the “Guiding Opinions on Accelerating the Transfer of Packaging Industry in China” to actively promote the reform of the supply side of the packaging industry in China and improve quality and efficiency. On the one hand, from the perspective of industry scale, to keep pace with the growth rate of industrial development and the growth rate of the national economy, by 2020, the annual main business income of the packaging industry will reach 2.5 trillion yuan; on the other hand, from the perspective of industry structure, Strengthen the leading enterprises and form more than 15 enterprises or groups with an annual output value of more than RMB 5 billion. The number of listed companies and high-tech enterprises has increased significantly. In particular, the demonstration bases for the new industrialization industry with outstanding features in the packaging industry have been actively fostered, forming a group of strong companies. A well-known brand of influence.

Information Processing: Carton Street

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