In recent years, with the development of Chinese economy, the papermaking industry has continued to grow. In 2000, the total output of paper and paperboard was about 30.5 million tons and increased to 125.42 million tons in 2017, with the CAGR up to 8.7% from 2000 to 2017.
According to the analysis of CRI, the sub-sectors of the papermaking industry present diverse prospects. With the rise of internet media, especially the popularity of mobile Internet apps, traditional printing media like newspapers, magazines and books have gradually declined in circulation, leading the demand for and production of newspapers to constantly drop. For another, the improvement in the living standards of Chinese residents has driven up the production of household paper. Also, the output of packaging paper is lifted by the development of logistics, especially the increase in express delivery, which is fostered by the growth of e-commerce.
The analysis of CRI shows that in recent years, wood pulp and waste pulp has taken up bigger shares in the raw materials for papermaking while non-wood pulp has been on the decline. Waste paper plays an increasingly important role in the development of the papermaking industry of China. The import volume of waste paper increased from 2.516 million tons in 1999 to 29.28 million tons in 2015 with the CAGR reaching 16.6% from 1999 to 2015. From 2016 to 2017, the amount of imported waste paper decreased due to the stricter policies of the government. Since Mar. 1st, 2018, Provision on Imported Waster Paper for Environmental Protection has taken effect. The new standards on the impurity rate of the imported paper have also been carried out, decreasing from 1.5% to 0.5%. The bar raised by the new standards poses great impacts on the amount and price of the imported waste paper. The new standard will lift the cost of sorting waste paper and thus affect its sales in China, the largest consumer in the world.
In terms of the approval of quotas for waste paper imports, many batches of small amount are adopted. Large enterprises like Panlong Paper, Liwen Paper, and Shanying Paper gain greater advantages to secure the quotas. In 2017, the top 5 papermaking enterprises obtained 62.6% of the quota. In 2018, the quota of large enterprises is expected to increase. Due to the decrease in imported waste paper, the price in the Chinese market will be lifted, which consequently drives up the cost of papermaking.
CRI report also indicates that Chinese papermaking enterprises are in great quantities in low market concentration. By the end of 2017, there were about 2,700 enterprises making papers and paper products with more than CNY 20 million in annual sales. The average annual capacity of those enterprises was less than 50,000 tons, far lagging behind the international level. In 2017, the number of enterprises which made paper of more than 1 million tons was less than 30.
From the perspective of the regional distribution of paper-making enterprises in 2017, the output of paper and paperboard in Guangdong was 21.7774 million tons, ranking first in China, and the output in Shandong was 21.7750 million tons, ranking second. The total output of paper and paperboard in the two provinces accounted for one third in the country. Now it has been the trend for papermakers to make investment or merger across regions, paring down the regionality. For example, Chenming Paper and Huatai Paper established factories in Shandong, Guangdong, Hubei, and Anhui. Nine Dragons Paper and Lee & Paper funded factories in Guangdong, Jiangsu, Tianjin, Chongqing, Fujian, and Sichuan. In another case, Hengan Group and Vinda located their workshops in different places across the country.
Currently, the export volume of paper and paperboard only accounts for less than 5% of the total output. In order to protect environment as well as satisfy domestic demands, the Chinese government does not encourage the export of paper and paperboard. Therefore, governments at all levels rarely publish supportive policies for the papermaking industry.
Chinese papermaking enterprises lack their own forestry property and mainly import raw materials for papermaking. The short supply of raw materials greatly affects the development of the papermaking industry as it rapidly grows. Also, the government policies and other extrinsic factors impact the import of raw materials.
CRI predicates that, with the development of Chinese economy and the rising living standards, the demand for household paper is growing. The development of e-commerce has promoted the increase in the express delivery, further driving the demand for packaging paper. It is expected that from 2018 to 2022, the overall demand for paper products in the Chinese market will maintain an annual growth rate of 3% or more, and the papermaking industry, to a certain degree, can bring about some investment opportunities.
Policy environment of the papermaking in China
Supply and demand in papermaking industry
Market competition in papermaking industry of China
Demand of the Chinese market for imported waste paper and other raw materials
Quota system of import waste paper by the Chinese government
Key enterprises in paper industry and their operation status
Price trend of raw materials in the papermaking industry of China
Driving forces and market opportunities in the papermaking industry
Threats and challenges faced by the papermaking industry
Forecast on development of China papermaking industry, 2018- 2022
Table of Contents
1 Analysis on Development Environment of Papermaking Industry of China, 2015-2018
1.1 Economic Environment
1.1.1 Chinese Economy and Residents’ Income
1.1.2 Development of E-commerce and Logistics
1.1.3 Internet Media Threats Traditional Publishing
1.2 Government Policies on Papermaking Industry
1.2.1 Industry Policies
1.2.2 Policies on Environmental Protection
1.2.3 Restriction Policies on Imported Waste Paper
1.2.4 Trend of Policy
1.3 Analysis on Papermaking Industry Chain in China
1.3.1 Upstream Raw Materials (Pulp and Waste Paper) and Equipment
1.3.2 Papermaking Industry
1.3.3 Downstream Customers in Papermaking Industry
1.4.1 Parameters and Assumptions
1.4.2 Data Sources
1.5 About CRI
2 Operation Status of Papermaking Industry of China, 2013-2017
2.1 Supply of Papermaking Industry, 2013-2017
2.1.1 Analysis on Papermaking Industry Capacity, 2013-2017
2.1.2 Production Volume of Paper and Paperboard, 2013-2017
2.2 Analysis on Demand for Paper and Paperboard, 2013-2017
2.2.1 Consumption of Paper and Paperboard, 2013-2017
2.2.2 Consumption Structure of Paper and Paperboard, 2013-2017
2.3 Forecast on Capacity Expansion of Papermaking Industry, 2018-2022
2.4 Analysis on Raw Materials of Papermaking Industry, 2013-2017
2.4.1 Consumption of Pulp
2.4.2 Analysis on Demand for Waste Paper
2.4.3 Price Trend of Raw Materials of Papermaking, 2015-2018
2.5 Analysis on Major Production Areas of Papermaking in China
3 Analysis on Major Paper Products in China, 2013-2017
3.1.1 Analysis on Supply of Newsprint, 2013-2017
3.1.2 Analysis on Demand for Newsprint, 2013-2017
3.2 Uncoated Printing Paper for Writing
3.3 Coated Printing Paper
3.4 Household Paper
3.5 Packaging Paper
3.6 White Paperboard
3.7 Box Paperboard
3.8 Corrugated Medium
3.9 Special Paper and Paperboard
3.10 Other Paper and Paperboard
4 Analysis on Import and Export of China in Paper and Paperboard, 2013-2017
4.1 Analysis on Import of Paper and Paperboard
4.1.1 Import Overview
4.1.2 Product Structure of Imported Paper and Paperboard
4.1.3 Analysis on Import Sources
4.2 Analysis on Export of Paper and Paperboard
4.2.1 Export Overview
4.2.2 Product Structure of Exported Paper and Paperboard
4.2.3 Analysis on Export Destinations
4.3 Analysis on Import of Waste Paper
4.3.1 Overview on Import of Waste Paper
4.3.2 Import Sources of Waste Paper
4.3.3 Forecast on Trend of Waste Paper Imports
5 Analysis on Market Competition in Papermaking Industry of China, 2013-2017
5.1 Barriers to Entry in Papermaking Industry
5.1.1 Policy Barriers
5.1.2 Capital Barriers
5.1.3 Scale Economy Barriers
5.2 Competition Structure of Papermaking Industry
5.2.1 Bargaining Power of Raw Material Suppliers
5.2.2 Bargaining Power of Users in Need of Paper and Paperboard
5.2.3 Internal Competition
5.2.4 Potential Entrants
5.2.5 Substitutes for Paper and Paperboard
6 Analysis on Papermaking Enterprises in China
6.1 Shandong Chenming Paper Group Co., Ltd.
6.2 Huatai Group Co., Ltd.
6.3 Shandong Sun Holdings Group
6.4 Nine Dragons Paper Co., Ltd.
6.5 Lee & Man Paper Manufacturing Co., Ltd.
6.6 Hengan Group Co., Ltd.
6.7 Anhui Shanying Paper Industry Co., Ltd.
6.8 China Paper Corporation
6.9 Ningbo Zhonghua Paper Industry Co., Ltd.
6.10 Gold East Paper Co., Ltd.
6.11 Shandong Bohui Paper Co., Ltd.
6.12 Jiangsu Longchen Greentech Co., Ltd.
6.13 Dongguan Jianhui Paper Co., Ltd.
6.14 Zhejiang Jingxing Paper Joint Stock Co., Ltd.
6.15 Gold Hongye Paper Group
6.16 Shandong Century Sunshine Paper Group Co., Ltd.
6.17 Hainan Jinhai Pulp & Paper Co., Ltd.
6.18 Dongguan Jinzhou Paper Co., Ltd.
6.19 UPM China
6.20 Shandong Tranlin Group
7 Forecast on Development of Papermaking Industry of China, 2018- 2022
7.1 Factors influencing Development of Papermaking Industry, 2018-2022
7.1.1 Driving Forces and Market Opportunities
7.1.2 Threats and Challenges
7.2 Forecast on Supply in Papermaking Industry, 2018-2022
7.3 Forecast on Demand in Papermaking Industry, 2018-2022
7.4 Analysis on Demand for Raw Materials in Papermaking Industry
7.5 Prediction on Investment Opportunities in Papermaking Industry of China
7.6 Suggestions on Development of Papermaking Industry of China
Part of Charts
Chart Production Volume of Paper and Paperboard in China, 2007-2017
Chart Consumption of Paper and Paperboard in China, 2007-2017
Chart Production and Consumption Structure of Paper Products in China, 2013-2017
Chart Production Volume and Consumption Volume of Newsprint in China, 2007-2017
Chart Production Volume and Consumption Volume of Box Paperboard in China, 2007-2017
Chart Top 10 Enterprises in Paper Production Volume in China, 2017
Chart Import Status of China on Paper, Paperboard, Pulp, Waste Paper, Paper Products, 2013-2017
Chart Export Destinations of China’s Paper and Paperboard, 2017
Chart Import and Export Volume of Newsprint in China, 2013-2017
Chart Import Sources of Waste Paper, 2017
Chart Average Price of Imported Waste Paper in Chinese Market, 2013-2017
Chart Operation Status of Nine Dragons Paper Co., Ltd., 2013- 2017
Chart Production Volume of Paper and Paperboard in Nine Dragons Paper Co., Ltd., 2013-2017
Chart Market Share of Nine Dragons Paper Co., Ltd. in China, 2013-2017
Chart Operation Status of Lee & Man Paper Manufacturing Co., Ltd., 2013-2017
Chart Operation Status of Shandong Chenming Paper Group Co., Ltd., 2013-2017
Chart Forecast on Total Output Volume of Paper and Paperboards in China, 2018-2022
Chart Forecast on Demand for Pulp in Papermaking Industry of China, 2018-2022