Demand for packaging equipment in China is forecast to increase 8.0 percent per year through 2011 to 51.5 billion yuan ($6.7 billion). Sales will be fueled by advances in manufacturing output as fixed investment in Chinese industrial facilities continues to grow. Rising income levels across the country will continue to transform lifestyles in China and domestic consumption of packaged goods will soar, further boosting demand for packaging equipment. Decreasing product prices due to intense competition in the Chinese packaging machinery industry will prevent faster gains going forward. These and other trends are presented in Packaging Machinery in China, a new study from The Freedonia Group, Inc., a Cleveland-based industry research firm.
Packaging machinery shipments in China are projected to rise 9.7 percent per year to 48.4 billion yuan in 2011. Gains will be driven by rapidly expanding manufacturing output, which in turn will be spurred by healthy local market conditions and increasing demand from offshore markets. Investment by foreign multinationals and large domestic companies will boost manufacturing capacity and improve the average quality of packaging machinery.
Filling and form/fill/seal equipment will remain the largest segment of packaging machinery demand in China through 2011, benefiting from rising income levels, increasing urbanization and associated changes in lifestyles that will boost demand for packaged products in food, beverage, pharmaceutical and chemical markets. Labeling and coding equipment will post the fastest advances through 2011, driven by domestic and overseas concerns about the security and safety of Chinese products.
The food industry is the largest market for packaging machinery in China. Packaged food has been one of the main beneficiaries of the shift in Chinese consumption patterns as more people choose processed foods. A growing urban population will require that food be better packaged to reduce spoilage during storage and shipment from rural areas, creating additional opportunities for packaging equipment in this segment. Demand for equipment used to package medical, pharmaceutical and personal care products is also projected to rise quickly, stimulated by rising income levels, urban lifestyle trends and increased access to healthcare for an aging population.
Corinne Gangloff |
