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Industry concentration has improved compared with the mature market. The industry concentration gap in China's paper packaging industry is very obvious. The US TOP5>70%, Australia TOP2>90%, Taiwan TOP3>50%, and China's leading enterprise Hexing packaging is only 1.5%. The trend of branding in the downstream consumer goods industry of paper packaging has gradually emerged, and the transmission of high concentration of downstream industries to upstream packaging suppliers will gradually strengthen.
In the second half of 2011, the sharp decline in the industry's prosperity was affected by the macro economy. The downstream industry demand fell significantly in the second half of 2011, which directly led to a decline in orders from related companies in the paper packaging industry. Data show that after April 2011, the output of carton is basically the same as that of 2010, especially after entering the third quarter, with a double-year-on-year decline, and the industry's prosperity has fallen to a low point since the financial crisis. In addition, the price of raw paper is at a high level, especially in the case of a slowdown in downstream demand, which has caused a large amount of erosion in the industry. From the second quarter of 2011, the profitability of the industry has declined rapidly.
Analysis of China's paper packaging industry is still in the growth stage
In the past six years, China's paper packaging industry has maintained a growth rate of around 18%, which is nearly double the GDP growth rate. Horizontally comparing per capita consumption and economic development, China's paper packaging industry has great potential for future growth and is still in the growth stage.