China manufactured 109,800 sets of packaging equipment in 2013, up 13.46% year on year, generating total revenue of RMB27.095 billion, a jump of 7.75% from a year earlier, according to a report by Market Research.
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, states China Packaging Machinery Industry Report, 2014-2017.
In 2013, sales of RMB1.988 billion (US$0.32 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 respectively.
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 a combination of multiple 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 report says 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 improve in the future.