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China Cosmetic & Packaging Industry Outlook & Regulations

#Private Equity#China e-Commerce#Retail#Capital Markets#Entertainment

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Finance Mandarin Case Study.
The packaging industry in China is expected to register a CAGR of 13.5% during the forecast period (2021-2026). The growing per capita income and the changing social climate and demographics are some of the factors that greatly influence the Chinese packaging industry. This change has stirred the need for new packaging materials, methods, and formats.

The rise of e-commerce giants, like Alibaba, in the country is expected to drive the packaging market, over the forecast period. For instance, during the ten days of the Alibaba's Double 11 shopping festival, Chinese consumers received nearly 1.9 billion packages.
The growing trend toward health consciousness drives the packaging industry to look for innovative food and beverage packaging materials. These materials are expected to have antimicrobial properties and mechanical strength that maintains the freshness of the product for a longer time. This is expected to drive the consumption of packaged food, which helps in driving the use of packaging materials in the country.
Similarly, the increasing need for quality water and health-conscious drinking habits are expected to increase the consumption of bottled water, which directly influences the packaging industry in the region. For instance, according to DCC China, the consumption of bottled water is expected to reach 49 million metric ton, by 2020.
An increase in the number of logistics firms, fueled by the rise in online shopping, could promote the packaging industry in the region positively. For instance, according to State Post Bureau statistics from 2017, logistics companies delivered 76,000 parcels per minute.
However, China's plastic waste ban poses as a restraint for the development of the packaging industry in the country.

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