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Paper and paper products multi-element catalytic corrugated cardboard market
Publish Time:
2024-08-26
The business of the mid-to-high-end corrugated cardboard box industry includes design, manufacturing, and printing services, mainly serving large enterprises in the home appliance, IT, and food consumption sectors. Orders from these large clients have increased significantly with the improvement of national consumer spending power. At the same time, the concentration of the domestic corrugated cardboard box industry is currently very low, and high-quality enterprises are rapidly expanding and seizing incremental orders from these large clients through their products and services.
The business of the mid-to-high-end corrugated cardboard box industry includes design, manufacturing, and printing services, mainly serving large enterprises in the home appliance, IT, and food consumption sectors. Orders from these large clients have increased significantly with the rise in national consumer spending. Meanwhile, the concentration rate of the domestic corrugated cardboard box industry is currently extremely low, and high-quality enterprises are rapidly expanding, seizing incremental orders from these large clients through their products and services.
Corrugated box companies have difficulty controlling upstream costs.
The corrugated box industry has a very low concentration rate, but the upstream corrugated/box board industry has a relatively high concentration rate. When price increases are significant, both leading and small paper companies are willing to raise paper prices, and paper distributors actively increase inventory and hoard goods, while end customers are in a state of panic and have to speed up procurement. This leads to corrugated box companies being in a relatively weak price position when facing the entire upstream (paper mills and distributors).
Downstream demand is polarized, with high-end customers showing a greater willingness to accept flexible pricing.
Currently, China's corrugated cardboard box industry shows signs of polarization. On the one hand, more and more high-end customers urgently need high-quality corrugated cardboard boxes and additional services, but the capacity increase of manufacturers that can provide such products and services cannot keep up with the increase in demand in this market; on the other hand, many low-end customers only need "containers that can hold things," and have no requirements for the quality and additional services of corrugated cardboard boxes. The increase in demand in this market is limited and the threshold is low, resulting in oversupply. The excellent profitability of high-end customers makes them less sensitive to the cost of cardboard packaging. Coupled with their urgent need for high-quality boxes and services, they are more willing to accept flexible pricing. For low-end users, market competition is homogeneous, and vicious price wars are the only result, leading to generally low gross profit margins in the low-end market.
Economic transformation has catalyzed the evolution of high-end customer demand for corrugated box companies.
Along with China's economic transformation, the operations of high-end customers have undergone several significant changes: Firstly, with the improvement of domestic residents' consumption capacity, industries that were previously mainly export-oriented are gradually shifting to domestic sales; secondly, the speed of product updates and iterations is accelerating, and zero-inventory management and rapid logistics have become rigid demands; thirdly, due to rising costs in coastal areas and rapid growth in inland demand, the relocation of manufacturing to inland areas has become an inevitable trend.
The transformation of high-end customers has also given rise to new requirements for corrugated box companies. Firstly, as the volume of long-distance logistics transportation increases, customers' requirements for the physical indicators of the boxes, such as shock resistance, pressure resistance, and moisture resistance, are becoming increasingly stringent. Secondly, customers' own competition and cost control have also increased the demand for additional services such as exquisite printing, timely delivery, logistics optimization, and inventory saving solutions. Furthermore, manufacturing customers relocating inland often require that the supporting corrugated box companies they have cooperated with for many years follow them to set up factories inland, which poses a challenge to the speed at which corrugated box companies set up new factories. Finally, many large enterprises that have set up production lines nationwide are increasingly inclined to integrated procurement of corrugated cardboard boxes, gradually abandoning the previous decentralized procurement in various places and instead looking for a unified national supplier to ensure the consistency of box strength, printing effects, and service quality. As a result, the proportion of leading corrugated box companies with extensive layouts across the country will become increasingly larger in high-end customer orders, demonstrating the principle of the strong getting stronger.
Real-time News
Recently, Aijia Packaging Technology Co., Ltd.'s "Intelligent Transformation and Upgrading Project for Integrated Production of Corrugated Boxes" won the 2025 WEPACK Global Corrugated Industry Award for Best Intelligent Production of the Year, the only one in the country.
On September 9th, reporters learned from Chuanjiang Town, Tongzhou District that Nantong Aijia Packaging Technology Co., Ltd. won the 2025 WEPACK Global Corrugated Industry Award for its "Intelligent Transformation and Construction Project of Integrated Production of Corrugated Cartons."
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