Development prospects of China packaging machinery industry in 2020

①The downstream industry continues to develop rapidly, and the packaging machinery market is in wide demand

China’s macro economy has maintained rapid growth in the past ten years and has become the world’s second largest economy. According to statistics from the National Bureau of Statistics in 2019, China’s GDP reached 99.0865 trillion yuan, a growth rate of 6.1% over the previous year, which has become one of the centers of promoting global economic growth and one of the largest consumer markets in the world.

Benefit from the health, stability, and rapid development of the entire macro-economy, as well as various industrial adjustment and revitalization development plans promulgated by the state, including tea, tobacco and alcohol, shoes, jewelry, and cosmetics, The rapid development of many downstream industries, including consumer electronics and other industries, has played a huge leading role in the rapid growth of China’s packaging machinery industry.

With the increasingly prominent position and role of my country in the global economic structure, and the continuous and stable growth of my country’s macro economy, these downstream industries will continue to drive the packaging machinery industry in the business model, product structure, technology research and development, manufacturing and other links in the future. Greater development will also provide a broader market space for the packaging machinery industry.

②The demographic dividend disappears and labor costs rise

With the decline in the number of laborers in China, the demographic dividend has gradually disappeared, labor costs have risen rapidly, and the low-cost human advantage has gradually weakened. The labor costs of labor-intensive production companies have increased day by day. Intelligent manufacturing has become a labor-intensive traditional industry transformation, The conversion of new and old kinetic energy and the main direction of supply-side reform.

According to data from the National Bureau of Statistics, the number of working-age population (16-59 years old) in China in 2013 was 919.54 million, and the number of working-age population (16-59 years old) in China was 896.4 million in 2019, with a compound growth rate of -0.42% . From 2013 to 2019, the proportion of my country’s working-age population (16-59 years old) in the total population has also been declining year by year.

In addition, due to the impact of epidemics such as the new coronavirus pneumonia (COVID-19), personnel isolation and worker suspension, all industries, especially manufacturing companies, will face the double pressure of immediate resumption of work and strict prevention of the spread of the epidemic. Through smart manufacturing, Unmanned factories and unmanned workshops will continue to emerge, which will play an important role in alleviating labor shortages and responding to special periods such as the epidemic.

③Support of national and local industrial policies

Since 2006, the State Council, the Ministry of Industry and Information Technology, China Food and Packaging Machinery Industry Association, and China Packaging Federation have successively issued a number of policies to promote the development of the equipment manufacturing industry. The above-mentioned series of national measures and policies will promote the healthy and rapid development of the industry in a long period of time.

④The technical level of the industry has greatly improved

China packaging machinery industry started relatively late, and there was a considerable gap in R&D, design, production, and technology from developed countries in the early stages of development. In recent years, under the support of the national industrial policy, some enterprises have adopted foreign advanced technology through independent innovation, introduction and absorption, and their technological level has been greatly improved, and the gap with foreign advanced technology has been continuously narrowed.

At present, the overall technical level of China’s packaging machinery industry has reached the international mid-to-upstream level, and some technologies have reached the international advanced level. The improvement of the technical level of domestic packaging machinery has enhanced the international competitiveness of domestic packaging machinery and equipment, created conditions for the export of my country’s packaging machinery, and at the same time changed my country’s long-term dependence on imports of high-end packaging equipment, which has an obvious “replacement of imports” effect.