China’s continuous economic growth has energized the demand for paper, providing broadened room for the development of nationwide paper manufacturing. Since 2009, domestic paper production and consumption have been ranked number one in the world, hence China has become an important international paper production and consumer player.
Market size and current situation
The scale of the paper industry in China has been growing steadily. At present, supply and demand are basically balanced. Statistics show that the production and consumption of paper and cardboard increased, from 107.1 million tons and 103.52 million tons in 2015, to 107.65 million tons and 106.04 million tons in 2019, respectively. It is expected that in 2020/2021 the growth of demand and supply would continue in its balanced state.
Paper prices have sky-rocketed since December of 2020. Sun Hing Printing is facing the dilemma of rising costs and shortage of labor. To cope with this situation, we strive in machinery automation; to save costs and to improve efficiency.
Looking forward, Sun Hing Printing believes that the global economy will revive and will strengthen in 2021. We are optimistic that the trend of paper industry will continue to expand. Regarding future development prospects:
1. National policies provide strong support for paper industrial development
The paper industry makes full use of the characteristics of circular economy, and green low-carbon attributes of plant raw materials; relying on technological progress and innovating development model. By establishing an open architecture packaging production system with its complementary advantages, we can create win-win situations. It will realize the optimal matching of packaging design, material supply, and manufacturing operations with customer orders; providing fast, convenient, low-cost and high-quality integrated services. It will also help providing a platform for packaging companies to transform into integrated service providers.
2. The growth of per capita disposable income of residents drives consumption upgrade
As the economy grows and disposable income rises, consumption upgrades will be the main direction of demand changes. Industrial packaging paper and corrugated box packaging industry will be driven by consumption upgrades and with show a steady growth trend.
3. Packaging products meet the trend of green consumption
Our country enhances great importance to the development of circular economy. Protection and improvement of the environment, and a low-carbon circular economy will be part of the major trends in China’s future direction. “Green Packaging” products have the characteristics of lightweight, recyclable, degradable; etc.; moving towards realizing the packaging materials being “paper instead of wood” and “paper instead of plastic”.
Sun Hing Printing will continue to be environmentally friendly, meet new challenges and developments; and suffice to implementing green printing.
