China BOPP Film Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

China BOPP film market is anticipated to register a CAGR of 5.2% over the forecast period. BOPP films find their application in food packaging, especially in snacks and cookies, as they help increase items' shelf life, decreasing food waste. Aside from the barrier qualities, the low gauge spread of BOPP films ensures consistent seal integrity. For food packaging, the availability of food-grade film that offers flexibility and durability makes it an affordable choice. Its strength, versatility, and outstanding mechanical properties make it the best among other substitutes.

Key Highlights

• China is one of the biggest economies in Asia-Pacific, and owing to its sizeable mid-income population, increasing disposable incomes, and high demand for packaged food and pharmaceutical products, the market as well is among similar dimensions. The increasing number of pharmaceutical products in China is significantly fueling the growth of barrier films in the country.
• BOPP films are being utilized increasingly for packaging, labeling, and laminating purposes. These films are the world's favorite substrates for food packaging due to their innate moisture barrier qualities, sealability, excellent clarity, graphic replication, and shelf appeal. A monolayer or homogenous structure is the best possible type of pack. Globally, BOPP films are in great demand because of the expanding flexible packaging sector. It is also popular in the food and labeling sectors as a reverse-printed, coextruded heat-sealable film.
• The expansion of food and beverage e-commerce, improving economy, and increased disposable income contributed to the increased consumption of packaged goods, which requires packaging to protect the commodities from contamination and damage. This tendency is likely to boost the vendor's manufacturing capacity and growth throughout the anticipated year.
• However, environmental rules are driving the industry and paving the way for the requirement for flexible packaging since using flexible packaging, as opposed to rigid packaging, has significant environmental advantages. The Flexible Packaging Association examined the ecological benefits of employing a flexible pouch. For instance, according to Sealed Air, pouches yield 20% more products than rigid containers.
• Additionally, the COVID-19 pandemic scenario had a positive impact on the expansion of chemicals due to a growing need for high-quality films in the pharmaceutical business. The growth of the Chinese BOPP films market is aided by using BOPP films over the anticipated period. Further, the Russia-Ukraine war has an impact on the overall packaging ecosystem owing to inceased raw material and energy price.

China BOPP Film Market Trends

Growing Demand of Flexible Packaging

• Owing to their advantageous features and low price, BOPP films are utilized in food packaging and are replacing cellophane in applications like snack and cigarette packaging. Many different uses fall under the packaging category, including those for non-alcoholic drinks and the food industry. For instance, according to the stats published by Banco do Nordeste, the annual consumption of non-alcoholic beverages in China has been increasing since 2011, and it reached 104.38 billion liters in 2021. The increasing demand for beverages is anticipated to propel the demand for BOPP film in the expected time frame.
• Also, changes in packaging styles, innovations in flexible packaging designs, and increased demand for personal care products owing to the rise in the young population preferring its use are expected to drive the market for BOPP films in China. Also, manufacturers are investing in opening production sites to cater to the increasing demand for BOPP films. For instance, in June 2022, Fujian Forop Advanced Materials, one of the manufacturers and sellers of BOPP film products in the Chinese market, means to start two new production sites in southeast and southwest China by 2025, leading to six production sites with 30 BOPP production lines. This industrial development will boost the company's production potential, which intends to become the world's largest producer of BOPP film.
• Additionally, the need for flexible packaging is mainly driven by health considerations, as consumer knowledge of packaging solutions and their health advantages is rising. Moreover, the country's growing dependence on prepared and ready-to-eat foods has raised the need for flexible packaging, particularly in the snack market.

Growing Demand for Packaged Food

• One of the industries with the fastest growth, particularly in China, is packaged or ready-to-eat food. The accelerated pace of urban life and the sharp increase in wealth and standard of living drive the use of packaged foods.
• Retail establishments in China generate revenue from retail sales of food products. Flexible packaging products like BOPP films have become the preferred packaging in the area because of their versatility, ability to be tailored, efficacy in protecting resources, and sustainability. They also provide consumers with a comfortable shopping experience by making it easier to move the products because of their small weight.
• For instance, according to the National Bureau of Statistics of China, online retail sales of physical goods in China increased from CNY 10.8 trillion (~USD 1.54 trillion) in 2021 to CNY 5.48 trillion (~USD 780 billion) in 2017. Online retail sales have been growing steadily in the past six years in China, which is anticipated to boost the growth of BOPP film packaging in the forecast time.
• Additionally, the retail sales value of packaged food is expected to grow in the country and is projected to reach USD 366.7 billion in 2025. According to Agriculture and Agri-Food Canada, retail sales of packaged food in China were USD 284 billion in 2020. It is projected to grow at a CAGR of 5.3 % and reach USD 366.7 billion in 2025 from USD 298.01 in 2021.

China BOPP Film Market Competitor Analysis

The Chinese BOPP film market is fragmented due to the presence of numerous local and global vendors in the market ecosystem. The international market players have adopted ways to accelerate the development of BOPP packaging in China, such as vertical and horizontal integration and expanding their production. Qingdao Kingchuan Packaging, RuiYann Industrial Co. Ltd, Zhejiang Haibin Film Technology Co. Ltd, Zhejiang Kinlead Innovative Materials Co. Ltd, and Zhejiang Changyu New Materials Co. Ltd are some of the key players in the market.

In March 2022, ChemmartNorth China assisted its top three industry customers in creating 8 microns of biaxially oriented polypropylene (BOPP) film, filling a gap in developing similar goods in China in terms of lightweight. The company has been aware of the BOPP industry's possible business opportunities. It has begun a complete examination of suitable clients in the region, having chosen a strategic customer in Fujian with a high degree of compatibility to carry out trial material marketing activity. The company accurately tailored the 'one household, one case' service plan of 'piloting a single production line first, then popularizing the entire production line' for the customer in response to the customer's requests and the actual production line.

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