With the decline in the profitability of the paper bag industry and the implementation of superimposed supervision actions, the elimination of small and medium-sized enterprises has been accelerated, the market concentration has increased, and large enterprises have gained more market share. After the increase in the right to speak, the cost-passing ability of leading companies will be improved to a certain extent. Therefore, the performance of paper packaging companies in the second half of 2018 is expected to usher in an improvement and profitability will increase.
The packaging and printing industry presents a typical "big industry, small company" pattern. Everyone is subdividing this industry, because the industry has low entry barriers, many small and medium-sized enterprises, scattered competition, and the overall situation of oversupply, with continuous profitability Decline. The domestic packaging industry has a very low threshold, with a high proportion of small and medium-sized enterprises, exceeding 60%. The bargaining power with upstream and downstream suppliers is seriously insufficient.
In addition, many packaging companies have regional characteristics and relatively concentrated market shares. Even if they are industry leaders, the market has certain limitations. Under the situation of poor industry prosperity, small and medium packaging companies are facing the dual pressure of rising raw material prices and limited product transportation radius. Profits continue to decline, the supply side of the industry continues to squeeze out, backward production capacity is eliminated, and the integration of low-end packaging paper packaging It is imperative.
Affected by consumption upgrades, demand for mid-to-high-end packaging is gradually increasing. Packaging is an important carrier of the brand image of consumer products, and downstream consumer products will gradually increase their packaging requirements. High-end packaging will be used to enhance the brand image, thereby attracting more core consumer groups and capturing high sales profits. In recent years, the demand for high-end consumer products such as consumer electronics and cosmetics has been strong, and there is a huge demand for packaging paper.
Supply-side reforms and consumption upgrade trends have created opportunities for increasing market concentration, and packaging is also developing towards high-end under the general trend of consumption upgrades. The demand for packaging paper for high-end products is becoming increasingly individualized. The integrated packaging service for high-end customers is gradually being introduced. The industry's business model is gradually transforming from manufacturing to service, thereby obtaining higher added value.