1. The industrial chain of the plastic packaging industry

Plastic packaging has become a new force in the packaging industry by virtue of its advantages of light weight, good durability, strong plasticity and low price. At present, plastic packaging has been widely used in electronics, food, beverage, wine, tea, cigarette, medicine, health care products, cosmetics, small household appliances, clothing, toys, sports products and other industries and product packaging supporting industries.

China's plastic packaging after more than 30 years of development, has initially formed a complete category, has a considerable technical scale and a certain level of industry, in the packaging market occupies an extremely important position, is China's plastic industry and packaging industry in the largest one of the fields.

Plastic packaging in China has a long history of development, has formed a more mature industrial chain. ****** * the owner of the plastic packaging for the synthetic resin and plastic additives provider, whether it is plastic packaging or upstream raw materials synthetic resin, on the whole are petroleum extract, so the plastic packaging and plastic products industry is subject to the oil industry fluctuations. In 2018, the number of enterprises above a certain size in the plastic packaging industry was about 1,569, an increase of about 1.36 percent from the previous year. There are many kinds of plastic packaging in China, which can be classified according to different raw materials, different packaging materials, different shapes and different USES. China is a major packaging manufacturer and consumer in the world. Plastic packaging has accounted for more than 40% of the total output value of the packaging industry, and has become a new force in the packaging industry, playing an irreplaceable role in food, beverage, daily necessities and industrial and agricultural production.

Material packaging in China has a long history of development, has formed a more mature industrial chain. The industrial chain of plastic packaging can be divided into three major parts. The upstream is the raw material supplier of plastic packaging, mainly responsible for the supply of synthetic resin and plastic additives for plastic packaging raw materials. In the middle is the plastic packaging manufacturing link, plastic packaging products can be mainly divided into hard packaging and soft packaging, hard packaging mainly refers to plastic barrels, plastic bottles, plastic covers and other plastic products, soft packaging mainly refers to plastic hose, plastic bags and other non-shaped products; The downstream of plastic packaging is the application industry of plastic packaging, which is widely used in China. The main application industries include beverage manufacturing, food manufacturing, pharmaceutical manufacturing, daily chemical products manufacturing and edible oil manufacturing.

The owner of the plastic packaging shall be the supplier of synthetic resin and plastic additives. Plastic products industry development history in our country for a long time, the industry enterprises are numerous, competition, existing product structure and quality of competition are low-end products price competition, in addition to the special demand, plastic packaging plastic raw materials used in the plastics low-end position, provide the materials of numerous enterprises, to the plastic packaging industry in our country have laid a good foundation.

Both plastic packaging and upstream raw materials of synthetic resin, on the whole are oil extract, plastic packaging and plastic products industry is of large fluctuation in oil industry, such as rising oil prices, rising cost of plastic products industry, resulting in the plastic packaging industry rising costs, and profit space is narrow, lead to industry exit number increase, and vice versa. China is a typical country that is dependent on oil imports. In 2018, China's oil output was 18.9106,000 tons, and its consumption was 650 million tons. Its import dependence was about 69.8 percent.

There are many kinds of plastic packaging and its downstream application is extensive

Think tank research consulting issued by the China plastic flexible packaging industry development in 2020-2026 model analysis of investment opportunity analysis report shows: the plastic packaging industry belongs to the low technical barriers to trade in our country, and the application field widely, the downstream demand is bigger, so that enterprises continue to come into the plastic packaging industry, plastic packaging industry 2018 enterprises above designated size number is about 1569, about 1.36% from a year earlier. There are many kinds of plastic packaging in China, which can be classified according to different raw materials, different packaging materials, different shapes and different USES.

China is a major packaging manufacturer and consumer in the world. Plastic packaging has accounted for more than 40% of the total output value of the packaging industry, and has become a new force in the packaging industry, playing an irreplaceable role in food, beverage, daily necessities and industrial and agricultural production. Plastic packaging industry packaging products, packaging materials steady growth, new packaging materials, new processes, new technologies, new products constantly emerge.

With the rapid development of China's economy, the improvement of people's living standards and the increase of medical costs caused by the aging population, the intensified development of new drugs, the acceleration of the reform of the medical security system and the expansion of medical insurance for urban residents, the plastic industry will continue to maintain the momentum of rapid growth. In addition, China's plastic packaging material quality and packaging varieties are significantly lower than the international level. In developed countries, plastic packaging accounts for 30 per cent of the value of plastic products, compared with less than 10 per cent in China. The next few years will be a period of rapid development of China's plastic packaging industry.

Second, the industry profit level changes the trend and the change reason, enters the industry the main obstacle and the influence industry development factor analysis

The downstream application field of plastic packaging industry is extensive, the market demand is strong, the overall profit level of the industry is relatively stable.

The profit level of plastic packaging industry also varies with the market structure. At the low end of the market, there are many small-scale enterprises with backward production equipment and low product quality. They take price as the main means of competition, so their profit margins are very limited. In the high-end market, enterprises with large scale and strong strength are able to provide comprehensive services and functional products for large customers and tend to have higher and stable profitability.

In view of the plastic packaging industry is in the middle of the industrial chain, it is affected by the upper and lower levels of the **** industry. In recent years, due to changes in the economic situation and upstream and downstream industries, the average profit margin of the industry has fluctuated to a certain extent. With the global economic situation gradually improving, if there is no significant adverse change in the industry, the overall gross profit margin of China's plastic packaging industry is expected to remain relatively stable in the future.

Major barriers to entry into the industry

1、Capital barriers

At present, China has a large number of plastic packaging enterprises, most of which are small and medium-sized enterprises. The market competition in the plastic packaging industry is becoming increasingly fierce. If new entrants take the low-end route, their profit margins will be very limited. And high-end plastics packaging industry in equipment demand is higher, buy equipment one-time investment is larger, the investment risk is higher, with imports of FFS packaging film production line and wire drawing machine as an example, the bond pull (Bandera) from Italy, Germany, Finland luxury homes (RBF) FFS packaging film equipment, imported from Germany Obama Barmag imported wire drawing units, purchase price of tens of millions of yuan. If capital input is not enough, it is difficult to form economies of scale. The above factors form certain capital barriers for new entrants.

2、Technical experience and qualification barriers

The r & d system construction, technical process mastery and training of skilled workers in the plastic packaging industry need quite a long time of practice accumulation, so that enterprises with long-term experience in the industry are in an active position in the competition, which constitutes a certain barrier for new enterprises to enter. As the government departments to strengthen supervision and downstream customers, supplier quality requirements gradually improve the quality of product, some niche products such as food, for packaging materials and its products quality and performance requirements of more and more strict, related production enterprise needs to be approved by the provincial bureau of quality and technical supervision, licensing the food with plastic packaging production and dangerous chemical packaging, container production license; If the export business is involved, the relevant certification of the export place should be obtained (such as BRC, etc.). All these constitute the corresponding barriers for new enterprises to enter.

3、Barriers to the customer

The products provided by the industry are typically non-standard and customized. Plastic packaging products variety, many batches, small batch, customer customization requirements. Before supplying goods to customers, enterprises in the industry shall first pass the strict qualification certification of customers before establishing cooperative relations with them. Operating mode in the established customer change supporting suppliers of high cost, long period, if the supplier supplied product can continue to meet the requirements of its technology, quality, delivery time and so on, the downstream customers to achieve long-term, stable relations of cooperation with them, will not easily change suppliers, which restricted the parts have a certain strength of investment, but the lack of sufficient customer base of the enterprise into the industry. With procter & gamble, unilever, yi hai kerry, big companies such as cofco, for example, it usually in the enterprise scale, enterprise reputation, product quality, production capacity, after-sales service, social responsibility, and many other fields of packaging suppliers rounds of review, only through the final inspection of packaging suppliers to obtain qualified supplier qualification.

4、Service capacity barrier

Plastic packaging industry from the early simple product brands, meet the basic requirements of product packaging conditions, to fully meet customer requirements of product physical and chemical properties, packaging technology and automation level, storage conditions, the final product to use logistics storage environment conditions and other factors, to adapt to the trend of upstream or downstream industry chain professional division of labor is increasingly elaborate. In addition to being a product supplier, enterprises in the industry need to have comprehensive and professional service capabilities to meet the specific needs of customers and provide full pre-sale, in-sale and after-sales services, so as to achieve a mutually beneficial and win-win situation with customers. As the industry's rapid development and the industrial division of labor, a large enterprise customer demand for packaging products will become more and more tend to comprehensive professional service ability, has the ability to provide the overall solution of enterprises, small enterprises subject to its own industry experience, research and development of design capability, production capacity is insufficient, will cause the order scarce or business focused on the red sea market, competition is fierce, which in turn lead to decline in profitability, this will increase the risk of industry potential entrants in the market.

5、Policy barriers

With the improvement of people's awareness of environmental protection, many countries have formulated corresponding policies and regulations on plastic packaging products to improve the environmental protection requirements for plastic packaging products. For example, European and American countries have made regulations on packaging materials, marks, labels, packaging recycling or reuse. China has also successively introduced some laws and policies, such as the law on promoting the circular economy, the implementation regulations on the import and export commodity inspection law, the discharge standards of pollutants from the synthetic resin industry (gb31572-2015), and the general technical requirements for plastic woven bags (GB/ t8946-2013), etc., which put forward higher environmental protection requirements for plastic packaging products.