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Asia Pacific: Food, pharmaceutical, household chemicals sectors boost China’s packaging machinery industry in 2013, finds report

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In 2013, China manufactured 109,800 sets of packaging equipment, up 13.46% year on year, generating total revenue of RMB27.095 billion (US$4.44 billion), a jump of 7.75% from a year earlier, according to the China Packaging Machinery Industry Report, 2014-201 by ResearchAndMarkets.

The industry’s total revenue presented a compound annual growth rate of 16.38% during 2007-2013.

The development of industries such as food packaging, pharmaceutical packing and household chemicals packaging will conduce to strong growth momentum of packaging machinery industry.

In 2013, sales of RMB1.988 billion were achieved in the Chinese packaging machinery automation market, of which low-voltage motor, low-voltage converter and servo were top three best-selling products, separately accounting for 25.8%, 21.2% and 19.1% of packaging machinery automation market.

Servo, as an important component for automatic packaging machinery, has significant pulling effect on packaging machinery automation market and will usher in a stage of rapid development in the future.

Affected by factors such as capital, technology, talent and experience, most of domestic packaging equipment manufacturers in China operate in small scale, resulting in a low market concentration.

However, the industry is becoming increasingly concentrated, with five large companies holding a combined 10.38% market share in 2013, up 1.25 percentage points against 2012 and expected to further improve in the future.

China beverage packaging machinery industry, Guangzhou Tech-Long Packaging Machinery Co., Ltd. (Tech-Long) has a 140,000 sqm beverage packaging machinery plant.

In 2013, the listed company manufactured 415 sets of liquid packaging machinery, soaring by 221.7% from the previous year, and sold 422 sets, rising by 34.39% on a year-on-year basis.

In the same year, J.S. Corrugating Machinery Co., Ltd (J.S. Machine), a listed  paper product packaging machinery manufacturer in China, reported revenue of RMB470 million from packaging machinery, a 48.62% rise from the prior year, making up 1.73% of the market, up 0.47 percentage points from the year before.