According to FORWARD Business Information, China’s corrugated raw paper market faced a shortfall in supply of nearly 3.86 million tons last year, and over the past 10 years, the average annual shortage has reached 677,000 tons. The demand gap is gradually expanding.
Industries including food and beverage, home appliances, IT electronics which have a huge demand for corrugated boxes now are seeing a trend of consumption upgrading. The trend of upgrading packaging in leading end users will lead to continued growth in the market size of mid- to high-end corrugated cartons. Upstream paper mills produce corrugated raw paper as raw materials. In the carton-manufacturing industrial chain, the primary mills are producers of raw paper, which have benefited from the big jump in paper prices; the secondary mills are producers of cardboard, such as those producing corrugated paper and carton board; and the tertiary mills are producers of carton. Although China’s economy is currently facing problems such as slower growth due to economic transformation, the economic drivers are gradually shifting from export- and investment-led to consumption-led, which is good for China’s corrugated carton industry.