China Corrugated Packaging Market Size

China Corrugated Packaging Market Analysis

The Chinese corrugated packaging market is expected to register a CAGR of 4.1% over the forecast period. In China, mobile devices accounted for around 69% of all e-commerce transactions as of 2021; by 2025, the percentage is projected to reach 75%. Smartphones are becoming the go-to device for many Chinese customers when they make online purchases.

• Corrugated boxes are becoming the material of preference for online-based delivery channels due to the rising need for sustainability. The global corrugated packaging market is expanding due to the increasing demand. According to the National Bureau of Statistics of China, in the following years, the corrugated packaging market will experience considerable expansion due to the expanding use of corrugated boxes in numerous industries, including food and beverages, consumer electronics, pharmaceutical, and homecare goods sectors. In 2021, online commerce transactions in China reached CNY 13.09 trillion (~USD 1.8 trillion), representing 11.3 % year-on-year growth. The e-commerce market in China has maintained steady growth in recent years.
• Amazon uses corrugated board boxes as its primary packaging material, making the e-commerce sector a key participant in recent years. As Thailand's worries about packaging waste grow, the government will likely be forced to enact legislation encouraging individuals to use environment-friendly packaging solutions, such as corrugated boxes or folding cartons. This will boost the market growth.
• Over the past several years, developed regions have seen a surge in their use of gadgets and appliances, and China has been a significant exporter of electronics worldwide. Owing to their high level of sensitivity, these appliances need to be shielded from external harm and shock. Such requirements present profitable prospects for suppliers of corrugated packaging in the country. Despite the encouraging growth trajectory, the availability of substitutes like bioplastics might, in some instances, provide barriers to the expansion of the business. In addition, according to the National Bureau of Statistics of China, the per capita expenditure of private urban households in China on household items and services in 2021 was CYN 1,820 (~USD 285.61), up from CNY 1,640 (~USD 257.36) in 2020.
• However, increasing sustainability issues, growing environmental concerns, and rising raw material prices might hinder market growth in the long run. Also, the availability of another packaging alternative might affect the market growth.
• The rise in demand for packaged food and the escalating need for corrugated packages in expanding e-commerce shipments were some crucial COVID-19 outbreak-related market drivers. During the pandemic, the demand for supermarket packaging, healthcare items, and e-commerce shipping grew significantly. At the same time, demands for luxury, industrial, and B2B transport packaging decreased. The Russia-Ukraine war has also impacted the overall packaging ecosystem.