CHINA Foodpack& Propak Review
China:exceptional growth, a giant market!China
continues to modernize at an even quicker pace than before. With an approximate annual growth rate of 9%, its economy is booming. Needs are substantial and so are opportunities.
Population 1.3 billion, i.e. 20.7% of the world population.
GDP: China's GDP ranks 4th in the world in 2006 after the USA, Japan, and Germany.
Direct Foreign Investment: USD 69.5 billon invested in 2006 compared to USD 60.3 billon in 2005 and 53.5 billion in 2004
Foreign trade in 2006 reached USD 1.76 trillion, representing a 23.8% increase compared to 2005
Exports: USD 969.1 billion (+27.2% compared to the same period in 2005)
Imports: USD 791.6 billion (+20% compared to the same period in 2005)
Number of foreign invested companies in China in 2006: 594.427
Number of overseas visitors in 2006: 22.21 million
China opens up!
Since joining the WTO late in 2001, China has opened the gates to its enormous market.
In particular, since January 1st 2004, tariffs on food processing and packaging machinery have decreased from 13.5% to 9.8% on average.
Such a sudden opening of the Chinese market has boosted the role of Shanghai as the major commercial platform in Asia, at the expense of Hong Kong and, to a lesser extent, of Singapore.
Shanghai: the new commercial platform for Asia
In the eyes of the world, Shanghai has become a symbol of China's vitality and its extra-ordinary economic expansion. With 17 millions of inhabitants, it is a true commercial platform and its port is on the way to becoming the foremost in Asia. Although the region comprises 14% of the Chinese population, it accounts for nearly a third of the country's GDP. At its current rate of growth, within the next four years East China's GDP could exceed that of Brazil.
The world’s second largest importer of food processing and packaging machines
There is an increasing need for food packaging and processing technology and equipment, which is directly driven by continually growing consumption of snack food, frozen food, microwavable food, dairy food, beverage products by more than 1.3 billion consumers in China.
The total production value of packaging industry in China is expected to reach to 450 billion RMB yuan with an average annual increase of 7% during the period of 2006-2010. Moreover, during 2011-2015, the total value is projected to be 600 million RMB yuan with an annual increase still keeping at 6%.
The amount of food packaging machines in China will increase from the existing 780,000 units to 930,000 units by 2010.
The energy saving & environment-friendly packaging industry of China demands for imported high-class packaging raw materials and equipment. Keeping at lower energy consumption and minimal pollution becomes the trend of China’s packaging industry.
Huge opportunities for international food processing and packaging equipment and materials manufacturers:
Food production is expanding at an annual rate of more than 20% in China, now the world's second largest importer of food processing and packaging machines.
Packaging imports have also grown rapidly in recent years:
Plastic packaging: +95%
Glass packaging: +80%
Aluminium packaging: +40%
Iron, steel and cast iron packaging: +37%
Only 30% of the total farm production is processed compared to 80% in industrialized countries.
That means opportunities of industrial partnerships with local manufacturers for international suppliers.