Beverage Containers in China

• Publication date: December 2011

Demand to rise 9.6% per annum through 2015 Demand for beverage containers in China is projected to rise 9.6 percent per year through 2015 to 470 billion units. In value terms, demand for beverage containers is expected to reach ¥314.0 billion in 2015, at an annual growth rate of 13.3 percent, faster than unit growth due to rising prices. Gains in the beverage container market will be driven by rapid growth in packaged beverage con...

Demand to rise 9.6% per annum through 2015

Demand for beverage containers in China is projected to rise 9.6 percent per year through 2015 to 470 billion units. In value terms, demand for beverage containers is expected to reach ¥314.0 billion in 2015, at an annual growth rate of 13.3 percent, faster than unit growth due to rising prices. Gains in the beverage container market will be driven by rapid growth in packaged beverage consumption, supported by an increase in personal income and expenditure levels. Other factors sustaining growth include the trend toward utilizing single-serving containers, shrinking container sizes, and the ongoing introduction of new products.

Plastic beverage containers to remain largest segment

Demand for plastic beverage containers will continue to account for the largest share of total sales, and exceed 222.9 billion units in 2015, reflecting their widespread use in the Chinese beverage industry. Growth will benefit from their low cost and continuing expansion in almost every beverage market, and from technological improvements. Advances will also be driven by plastic containers’ advantages over other materials, including shatter resistance, light weight, diversified container sizes and shapes, and resealability. Moreover, singleserving plastic containers will continue to make inroads into the market, causing further declines in the average plastic container size, assisting growth in container units. Polyethylene terephthalate (PET) will remain the dominant material, benefiting from its versatility, clarity, and good performance in hot-fill and cold-fill applications. Water has become the largest market for plastic containers, resulting from increased bottled water production. The second largest container type, glass bottles, will increase 7.0 percent per year through 2015. Gains will continue to benefit from favorable trends in beer consumption and the expanding use of nonreturnable beer bottles. Opportunities will also be found where glass is valued for its premium image, quality and capability to differentiate new products. Glass bottle sales are also expected to do well in the fruit beverage market. Fast growth is expected for paperboard containers through the forecast period, increasing 11.1 percent annually through 2015. Opportunities for paperboard containers are expected for milk, fruit beverages and other nonalcoholic beverages. In particular, strong growth of aseptic carton demand will benefit from lengthy shelf life at room temperature. Gains for metal cans will be close to the average growth of beverage containers overall. Favorable gains will also be seen for functional drinks, which will benefit from their premium image.

Milk to be largest nonalcoholic market

In the nonalcoholic beverage market, milk containers are forecast to be the largest segment in unit terms in 2015. Fruit beverage containers will become the second largest segment, followed closely by water bottles. As expansion of the carbonated soft drink market has been limited due to health concerns, container demand will grow slowly, on the same level as ready-to-drink tea containers. Demand for alcoholic beverage containers is expected to rise steadily. Beer containers are the largest segment of the alcoholic beverage market and will lead growth, while wine container demand will grow steadily as a rising Chinese middle class emerges.

Study coverage

This new industry study, Beverage Containers in China, presents historical demand data (2000, 2005, 2010) and forecasts for 2015 and 2020 by material and market. The study also considers market environment factors, evaluates company market share and profiles 28 industry competitors.

Packaging Industry in China

TABLE OF CONTENTS


I. EXECUTIVE SUMMARY 1

II. MARKET ENVIRONMENT 4

General 4
Macroeconomic Environment 5
Recent Economic Performance 6
Economic Outlook 8
Demographic Overview 12
Population 13
Urbanization 15
Households 16
Personal Income & Expenditures 17
Beverage Industry Overview 20
Packaging Trends 24
Beverage Container Pricing Trends 28
Technology Overview 31
Environmental & Regulatory Considerations 33
Recycling Trends 35
The Twelfth Five-Year Plan 37
International Trade 39

III. MARKETS 41

General 41
Nonalcoholic Beverages 44
Water 45
Overview 46
Container Demand 48
Plastic 49
Glass 50
Milk 51
Overview 51
Container Demand 54
Paperboard 55
Plastic 56
Glass 58
Fruit Beverages 58
Overview 58
Container Demand 61
Plastic 62
Paperboard 64
Glass 65
Metal 65
Carbonated Soft Drinks 66
Overview 66
Container Demand 69
Plastic 70
Metal 71
Glass 72
RTD Teas 73
Overview 73
Container Demand 76
Other Nonalcoholic Ready-To-Drink Beverages 78
Overview 79
Container Demand 82
Metal 83
Plastic 84
Paperboard 85
Glass 86
Alcoholic Beverages 87
Beer 89
Overview 90
Container Demand 93
Glass 94
Metal 95
Plastic 97
Distilled Spirits 98
Overview 98
Container Demand 101
Wine 104
Overview 104
Container Demand 107
Rice Wine 108
Overview 109
Container Demand 111

IV. CONTAINER OVERVIEW 114

General 114
Container Demand 114

V. PLASTIC CONTAINERS 119

General 119
Resins 122
Polyethylene Terephthalate (PET) 124
Other Bottle Resins 126
Pouches & Other 126
Markets 128
Water 130
Milk 132
Fruit Beverages 134
RTD Teas 136
Carbonated Soft Drinks 138
Other 140
Other Nonalcoholic RTD Beverages 141
Distilled Spirits 142
Rice Wine 143
Beer 143
Wine 144

VI. GLASS CONTAINERS 145

General 145
Markets 146
Beer 150
Distilled Spirits 152
Other 154
Fruit Beverages 155
Wine 156
Rice Wine 156
Milk 157
Carbonated Soft Drinks 157
Water & Other Nonalcoholic RTD Beverages 157

VII. PAPERBOARD CONTAINERS 159

General 159
Types 161
Markets 163
Milk 165
Fruit Beverages 167
Other 169

VIII. METAL CONTAINERS 172

General 172
Materials 174
Aluminum 175
Steel 177
Markets 178
Carbonated Soft Drinks 180
Beer 181
RTD Teas 183
Fruit Beverages 184
Other Nonalcoholic RTD Beverages 185

IX. CERAMIC & OTHER CONTAINERS 187

General 187
Markets 188
Distilled Spirits 189
Rice Wine 191

X. INDUSTRY STRUCTURE 193

General 193
Industry Composition 194
Market Share 197
Acquisitions & Divestitures 200
Manufacturing & Development 203
Marketing & Distribution 204
Integration 206
Cooperative Agreements 207
Foreign Participation in China 210
Legal & Regulatory Issues 211
Wholly-Owned Foreign Enterprises 213
Joint Ventures 214
Representative Offices 216
Company Profiles 217
Ball Corporation 218
Baosteel Group Corporation 220
CPMC Holding Limited 222
Crown Holdings Incorporated 224
Ecolean AB 226
Elecster Oyj 228
Evergreen Packaging Group, see Reynolds Group
Far Eastern New Century Corporation 230
Full Apex Holdings Limited 232
Global Group Company Limited 234
Great China Metal Industry Company Limited 235
Greatview Aseptic Packaging Company Limited 237
Guangdong Yuandong Food Packaging Machinery
Company Limited 238
Hunan Vary Pack Company Limited 239
Jpak Group Incorporated 240
ORG Canmaking Corporation 241
Owens-Illinois Group Incorporated 243
Pacific Can Company Limited 245
Qingdao Beihui Glass Company Limited 246
Qingdao Renmin Printing, see Jpak Group
Qinhuangdao Fangyuan Glass Company Limited 247
Qinhuangdao Suo Kun Daily Glass Group
Company Limited 248
Reynolds Group Holdings Limited 249
Shandong Jingyao Glass Group 252
Shanghai Jielong Industry Group Corporation Limited 253
Shanghai Skylong Aseptic Packaging Material
Company Limited 254
Shanghai Zijiang Enterprise Group Company Limited 255
Shenzhen Investment Holdings Company Limited 257
SIG Combibloc Group, see Reynolds Group
Sino Belgium Suzhou, see Far Eastern New Century
Tetra Laval International SA 258
Tetra Pak International, see Tetra Laval International
Zhuhai Zhongfu Enterprise Company Limited 260
Other Companies Mentioned in the Study 262

LIST OF TABLES

SECTION I -- EXECUTIVE SUMMARY

Summary Table 3

SECTION II -- MARKET ENVIRONMENT

1 Gross Domestic Product of China 12
2 Population of China 14
3 Households in China by Region 17
4 Personal Income & Expenditures in China 20
5 Beverage Production in China 23
6 Packaging Demand in China by Material 28
7 Beverage Container Pricing in China 31

SECTION III -- MARKETS

1 Beverage Container Demand in China by Market 43
2 Packaged Nonalcoholic Beverage Production in China by Type 45
3 Nonbulk Packaged Water Production in China by Material 48
4 Water Container Demand in China by Material 49
5 Packaged Milk Production in China by Material 53
6 Milk Container Demand in China by Material 55
7 Packaged Fruit Beverage Production in China by Material 60
8 Fruit Beverage Container Demand in China by Material 62
9 Packaged Carbonated Soft Drink Production in China
by Material 68
10 Carbonated Soft Drink Container Demand in China by Material 70
11 Packaged RTD Tea Production in China by Material 75
12 RTD Tea Container Demand in China by Material 78
13 Other Nonalcoholic RTD Beverage Production in China
by Type & Material 81
14 Other Nonalcoholic RTD Beverage Container Demand
in China by Material 83
15 Packaged Alcoholic Beverage Production in China by Type 89
16 Packaged Beer Production in China by Material 92
17 Beer Container Demand in China by Material 94
18 Packaged Distilled Spirits Production in China by Material 100
19 Distilled Spirits Container Demand in China by Material 103
20 Packaged Wine Production in China by Material 106
21 Wine Container Demand in China by Material 108
22 Packaged Rice Wine Production in China by Material 110
23 Rice Wine Container Demand in China by Material 113

SECTION IV -- CONTAINER OVERVIEW

1 Packaged Beverage Production & Beverage Container
Demand in China by Material 117

SECTION V -- PLASTIC CONTAINERS

1 Plastic Beverage Container Demand in China by Type 122
2 Resin Use in Plastic Beverage Containers in China by Type 124
3 Plastic Beverage Container Demand in China by Market 129
4 Plastic Water Container Demand in China 132
5 Plastic Milk Container Demand in China 134
6 Plastic Fruit Beverage Container Demand in China 136
7 Plastic RTD Tea Container Demand in China 137
8 Plastic Carbonated Soft Drink Container Demand in China 140
9 Other Plastic Beverage Container Demand in China by Market 141

SECTION VI -- GLASS CONTAINERS

1 Glass Beverage Bottle Demand in China by Market 149
2 Glass Beer Bottle Demand in China 152
3 Glass Distilled Spirits Bottle Demand in China 154
4 Other Glass Beverage Bottle Demand in China by Market 155

SECTION VII -- PAPERBOARD CONTAINERS

1 Paperboard Beverage Container Demand in China by Type 163
2 Paperboard Beverage Container Demand in China by Market 164
3 Paperboard Milk Container Demand in China 167
4 Paperboard Fruit Beverage Container Demand in China 169
5 Other Paperboard Beverage Container Demand in China
by Market 171

SECTION VIII -- METAL CONTAINERS

1 Metal Beverage Container Demand in China by Type 174
2 Metal Beverage Container Demand in China by Material 175
3 Metal Beverage Container Demand in China by Market 179
4 Metal Carbonated Soft Drink Can Demand in China 181
5 Metal Beer Can Demand in China 182
6 Metal RTD Tea Can Demand in China 184
7 Metal Fruit Beverage Can Demand in China 185
8 Other Metal Nonalcoholic RTD Beverage Can Demand
in China 186

SECTION IX -- CERAMIC & OTHER CONTAINERS

1 Ceramic & Other Beverage Container Demand in China
by Market 189
2 Ceramic & Other Distilled Spirits Container Demand in China 191
3 Ceramic & Other Rice Wine Container Demand in China 192

SECTION X -- INDUSTRY STRUCTURE

1 Revenue Data: Selected Beverage Container
Manufacturers, 2010 196
2 Selected Acquisitions & Divestitures 202
3 Selected Cooperative Agreements 209

LIST OF CHARTS

SECTION II -- MARKET ENVIRONMENT

1 Population of China by Age 15
2 Beverage Production in China by Type, 2010 24

SECTION III -- MARKETS

1 Beverage Container Demand in China by Market, 2010 43
2 Packaged Milk Production in China by Material, 2000-2020 54
3 Packaged Fruit Beverage Production in China
by Material, 2000-2020 61
4 Packaged Carbonated Soft Drink Production in China
by Material, 2000-2020 69
5 Packaged RTD Tea Production in China by Material, 2000-2020 76
6 Other Packaged Nonalcoholic RTD Beverage Production
in China by Material, 2000-2020 82
7 Packaged Beer Production in China by Material, 2000-2020 93
8 Packaged Distilled Spirits Production in China
by Material, 2000-2020 101
9 Packaged Wine Production in China by Material, 2000-2020 107
10 Packaged Rice Wine Production in China
by Material, 2000-2020 111

SECTION IV -- CONTAINER OVERVIEW
1 Packaged Beverage Volume Production & Container
Demand, 2010 118

SECTION V -- PLASTIC CONTAINERS
1 Plastic Beverage Container Demand in China by Market, 2010 130

SECTION VI -- GLASS CONTAINERS
1 Glass Beverage Container Demand in China by Market, 2010 150

SECTION VII -- PAPERBOARD CONTAINERS
1 Paperboard Beverage Container Demand in China
by Market, 2010 165

SECTION VIII -- METAL CONTAINERS
1 Metal Beverage Container Demand in China by Market, 2010 179

SECTION X -- INDUSTRY STRUCTURE
1 Beverage Container Market Share in China by Company, 2010 197