China's packaging machinery demand to grow by 7.5% per annum

According to a recently released analysis "Packaging Machinery in China to 2016" at ReportsnReports.com, demand for packaging machinery in China is forecasted to rise by 7.5% per annum to RMB 40 billion in 2016.

Advances will be led by growth in manufacturing output, as consumption of Chinese goods grows both internationally and domestically. The development of e-commerce in China and producers' efforts to expand distribution to more areas in China will lead to the greater use of packaging, resulting in growth of associated packaging machinery sales.

In addition, the intensity of packaging use in China will continue to rise for both functional and aesthetic reasons, further driving demand for packaging machinery. More stringent safety and hygiene standards for food, beverage, and medical products will drive demand for more advanced packaging equipment. However, government efforts to conserve resources by reducing packaging material and restrictions related to over-packaging will limit growth through 2016.

Filling and form/fill/seal equipment will continue to be the largest product segment in value terms in 2016, says ReportsnReports.com. Suppliers will benefit from increasing consumption of packaged food and beverages in China as lifestyles continue to change in line with rising personal income levels. Demand for these types of machinery will also grow due to the development of the pharmaceutical industry and improved medical technology.

Demand for labeling and coding equipment is forecasted to rise 8.2% per annum through 2016, recording the strongest advances of any packaging machinery product. Gains will be supported by stricter product labeling requirements in the food and beverage industries in China, particularly requirements to increase traceability.

Trends in food and beverage markets have the largest effect on overall packaging machinery sales, as they accounted for over half of all demand in 2011. Gains are forecast to advance faster than the industry average through 2016. Improving income levels and urban lifestyle trends will continue to stimulate growth. Demand for machinery used to package medical, pharmaceutical, and personal care products is expected to expand at the fastest rate through 2016, due to an aging population and growing demand for pharmaceutical products, as personal income levels rise and access to healthcare grows to a wider proportion of the population.

In terms of geographical location, packaging machinery demand among the regions in China varies, as manufacturing activity varies dramatically from one region to another. ReportsnReports.com believes that sales in the Central East are forecast to grow 7.3% annually through 2016, and the region will remain the largest single market for packaging machinery in China. Regional advances will be driven by rapid growth in manufacturing output, a result of a well-established economic base, developed transportation infrastructure, large industrial investment, and favorable government policies. Demand for packaging machinery in the Northeast is expected to post the fastest growth of any region through 2016. Gains will be primarily stimulated by the government's Northeast Revitalization policy.