Packaging machinery firms see potential in China

With the rapid economic development of China, there has been increasing demand for packaging machinery. Due to government support, the industry of packaging machinery in China has flourished, and is projected to develop at an average annual rate of over 20 per cent.

However, China food processing and packaging machinery industry still lags behind the rest of the world. Hence, it is necessary to import advanced technologies and equipment from abroad.

In recent years, annually imported packaging and food machinery has been valued at $2 billion, which has made China the second largest importer of packaging machinery.

Thus far, the packaging and food machinery industry in China is focusing on developing industrial and product reconstruction. The output of packaging machinery in China is expected to reach 670,000 sets in 2005 and 930,000 sets in 2010.

The total domestic demand for food machinery and packaging equipment will reach approximately RMB65 billion ($7.9 billion), with an annual growth rate exceeding 12 per cent.

This market therefore presents real opportunities for foreign equipment providers. China is industrialising at a phenomenal rate, with manufacturing accounting for 60 per cent of the country's GDP growth over the past decade.

The low cost of production, coupled with favourable economic policies and preferential tax rates, among the drivers behind the growth. This favourable environment has attracted major firms such as Coca-Cola and Nestlé, who now record sales of over $1billion in the China packaged food market, which is now estimated to be worth over €30 billion.

Such opportunities within the food packaging machinery sector will be discussed at the 9th International Exhibition for Food Processing & Packaging Equipment (Interfood Shanghai 2004), which runs from October 12 to 15 at the Shanghai International Exhibition Centre.

Held every two years, eight such exhibitions have been successfully concluded since it was first launched in 1988. Several chambers of commerce, various large food machinery manufacturers & processors, and clients have taken an active part in the exhibition, thus making it well renowned.

Around 150 exhibitors are from countries and regions such as Germany, Italy, France, the United States, Great Britain, Sweden, Switzerland, Holland, Belgium, Austria, Japan, Singapore, China, Hong Kong and Taiwan are participating.

Products on display will include equipment for animal slaughtering and meat processing; bread, cake and biscuit processing; vacuum and air-compressing; fruit and vegetable processing; sterilising, filtering and disinfecting.

There will also be demonstrations of recent innovations in freezing; food analysis and testing; liquid canning; heat shrinkable film/film packaging and label-sticking.

More information can be found by clicking here​.