With the continuous improvement of social living standards, people's requirements for food packaging are also increasing day by day. The safety of food packaging materials is also directly related to food safety. Therefore, modern food packaging has put forward new ideas for the entire industry.

In the past, food packaging was more in the category of food "package", and with the increasing diversification of consumer demand, food packaging began to integrate more functions. At present, consumers' requirements for food packaging tend to be high-quality and high-tech. The composite packaging material network has changed from production and operation to introduce food packaging that can adapt to new needs. With the concept of "convenience, safety and fashion", it is favored by consumers.

As an important part of commodities, food packaging is protecting food all the time. Packaging materials have become the object of consumers' attention. The use of green raw materials has become the main trend of the future development of the food packaging industry. For example, in recent years, in order to meet the requirements of the industry, the design of food packaging tends to be green, multi-functional and flexible, This degradable green food packaging not only saves production time, production costs are also greatly reduced.

Food Packaging

In today's information technology, the mobile Internet into the food packaging enterprise equipment is an inevitable success attempt. In the face of the vast future development prospects of the food packaging market, the food packaging equipment industry should actively change, seek the layout of the food packaging market, realize the dual development model of enterprises and industries, and gradually realize the modernization and information management.

Analysis of the current situation of China's paper packaging industry market:

1, China's paper packaging industry concentration is low.

Corrugated packaging industry due to the low entry threshold, many small and medium-sized production plants, the formation of China's corrugated packaging industry extremely scattered industry pattern. Eight listed companies, including Hexing Packaging, Shanying Paper, Beikong Clean Energy, Fenmei Packaging, Wanshun, Shanghai Green New, Zijiang Enterprises and Lufeng Environmental Protection, have a combined market share of only about 8%. Compared with the U.S. industry pattern, in 2014, the top two U.S. packaging companies, International Paper and WestRock, accounted for 25% and 15% respectively, and the TOP2 market share of the industry was as high as 40%.

Carton paper and corrugated base paper are the main raw materials for the production of corrugated board, accounting for about 70% of the main cost of carton enterprises. The price elasticity of EBITDA to corrugated base paper is about 0.9~1.1, and the fluctuation of raw material price has a great influence on the profitability of enterprises.

Although the upstream paper industry of corrugated packaging is facing the situation of overcapacity, the industry concentration is high. Nine Dragons Paper and Liwen Paper can account for more than 50% of the national market share. Compared with the corrugated box industry with low concentration, the paper industry has unquestionable bargaining power. When some regional paper mills appear to reduce production or stop production situation caused by the price trend, other paper enterprises easy to form an offensive and defensive alliance to push up the price of paper products, resulting in an increase in the cost of carton enterprises.

The paper industry has a low entry threshold and is a heavy asset operation, and the acquisition of paper companies will put pressure on the profits of corrugated packaging companies. With the continued closure of small and medium-sized paper enterprises, the bargaining power of leading paper enterprises will continue to improve, while the increase in environmental protection costs, debt-high paper mill price increase pressure and power continue to increase. We believe that the corrugated box industry, as a midstream industry, lacks the corresponding bargaining power when facing rising raw material prices.

On the other hand, although there are many downstream industries of corrugated packaging, its main customers are the industry leaders with high market share. Taking the home appliance industry as an example, the market share of Midea, Gree and Haier is 26%. We believe that due to the low concentration of the industry itself, it is difficult for enterprises to pass on the cost of upstream price increases to downstream customers, and the profit margin of the industry is in a compressed state.

2, paper price decline space is limited.

The production capacity of box board paper is abundant, the annual output has reached 21.8 million tons, the industry is self-sufficient, and the import quantity accounts for only 3% ~ 4%. At the same time, due to the continuous expansion of production capacity, the price of cardboard has shown a downward trend, and the price of cardboard has fallen by about 3% since 2015.

As consumption increases, the level of capacity at the current operating rate is insufficient to meet consumption. In addition, according to the target task of eliminating backward production capacity and excess capacity in the industrial industry, the corrugated paper and cardboard industry will continue to maintain the status quo of resource integration in 2015. The corrugated paper and containerboard planned to be put into production in 2015 are about 1.15 million tons and 2.6 million tons. Considering the possibility of delayed production of the project, the new production capacity in 2015 will decline from 2014. The supply and demand relationship in the corrugated paper and containerboard market is expected to be improved. Based on this judgment, the corrugated paper and containerboard market is expected to stop falling and stabilize in 2015.

To sum up, although there is overcapacity in the upstream paper industry of corrugated packaging, with the backward production capacity and excess capacity gradually eliminated from the market, the oversupply of corrugated paper and cardboard paper is expected to ease, and the future decline in paper prices is unsustainable.

3, China's paper packaging downstream industry growth slowdown

Corrugated carton products are non-standard products, and with the increase of storage time and air humidity, the adhesive strength and breaking strength of corrugated carton will decline, so enterprises to take "to sell production" production strategy, downstream demand determines the production situation of enterprises.

Population aging is a new environment facing China's economic development. In 2014, the elderly population over 65 years old accounted for 10.1 of the total population. The unique consumption concept and consumption demand of the elderly make the aging population bring new consumption demand-health demand. We believe that with the transformation of China's population structure to aging, there will be an increasing demand for physical and health aspects such as food and beverage, daily necessities, medical and pharmaceutical products.