China: Optimistic despite headwinds

According to government data, the value of the Chinese packaging and printing industry will reach 3.70 trillion RMB (USD 0.5 trillion) in 2023. Labeling remains an important player, posting a growth rate significantly higher than both packaging and general printing sectors.

According to a Smithers report published in March 2023, Asia-Pacific was the world’s biggest label printing market in 2022, valued at USD 15.9 billion USD, with a total output of 36.5 billion sqm.

“The installed capacity of digital equipment in China’s label market exceeds 700 units”.

In the past three years, the Asia-Pacific label market grew by only 0.5 percent YOY, significantly lower than the 6.2 percent achieved in the pre-Covid period between 2016-2019. In 2022, with the epidemic over, the market recovered strongly, growing by 7.3 percent. This rapid growth is expected to continue until 2026, with a projected growth rate of 5.7 percent in label volume and 4.5 percent in sales.

China is the largest market for label materials in Asia-Pacific, accounting for 44.9 percent of sales in the region. In terms of consumption, the Chinese market accounts for 61.5 percent of the Asia-Pacific market. From 2016 to 2019, China’s market volume grew at a CAGR of 7.0 percent and sales grew at a CAGR of 8.0 percent. Even during Covid-19, China’s labeling industry continued to grow, though at a slower pace than in previous years.

It is expected that by 2026, the compound annual growth rate of China’s label industry will be 6.1 percent, and the growth rate of sales will be 6.6 percent.

Continued...

For the full Labels & Labeling article click here.