China Paper Packaging Industry Research 4

5.2 Analysis of China paper packaging companies
5.2.1 Yutong Technology
5.2.1.1 Company profile

Shenzhen Yutong Packaging Technology Co., Ltd. (Yutong Technology) was established in 2002. It is a leading provider of overall packaging solutions in the paper packaging industry. Its main product business includes color printed paper boxes, gift paper boxes, rigid paper boxes, manuals, corrugated printed cartons, boxes and other products as well as smart packaging , Environmental protection packaging, functional packaging and other industry solutions, the service industry covers food and beverage, electronic communications, daily chemical, health, cigarettes. Yutong Technology is a leading company in the industry.

In 2017, the company’s operating income reached 6.95 billion yuan. Yutong Technology ranked first in the “2017 China Top 100 Printing Enterprises” list released by the industry authoritative magazine “Printing Manager”. Yutong Technology pays attention to technology and product research and development. The innovative research and development platform owned by the company focuses on the theoretical research of packaging, printing, printing and other technologies, material and product engineering experimental testing, product process design research and development and other fields. The company has made certain achievements in the development of packaging and printing technology. It has developed intelligent packaging, digital watermark anti-counterfeiting and other high-tech and applied them to various paper packaging products. While highlighting its technical strength, it also enhances the attractiveness of products. Power and practicality. In addition, Yutong Technology participated in the drafting of 36 industry standards related to printing and packaging, reflecting the company’s R&D accumulation in the industry.

custom paper box with spot UV

Spot UV and Embossing for the logo UE COFFEE ROASTERS

5.2.1.2 Main Products

Yutong Technology’s products mainly include color boxes, gift boxes, manuals, stickers, corrugated boxes and paper trays (see Figure 5-). Color box is the main source of income of Yutong Technology. In 2017, the operating income of color box accounted for 74.5% of the overall revenue. The color box not only has the function of packaging products, but also has the function of beautifying the goods. Since the color box has a certain design content, the main color box products have a certain effect on the overall profitability of Yutong Technology. In addition, the operating income of brochures and carton products is relatively small, each accounting for less than 10% of operating income.

5.2.1.3 Competitive advantage

(1) Strong R&D and innovation strength
The innovative research and development platform owned by Yutong Technology includes in-depth research and accumulation in many fields such as theoretical knowledge and technology research, material engineering experiments, and industrial design. The research institute established by the company has been tracking the cutting-edge and cutting-edge technology of the industry for a long time, focusing on researching new packaging technologies such as smart packaging, functional packaging, and environmentally friendly packaging. At the same time, it is deeply engaged in research in high-end anti-counterfeiting technology, three-dimensional printing 3D printing technology and other fields. And accumulating. The company has established a 3D printing technology engineering laboratory, a nano intelligent coating material engineering laboratory, a digital and anti-counterfeiting printing engineering technology research center, and promotes the application of core technologies in the industry and the transformation of research and development results into various paper packaging products.

Technological breakthroughs and product innovations have laid a solid foundation for the cultivation of industry-leading talents and the establishment of high-end research platforms.
In addition, Yutong Technology has formed a strategic cooperation with China’s first-class scientific research institutions to contribute an important force to the company’s scientific research strength through the integrated market operation of “production, study and research”. With the concerted efforts of internal and external research and development entities, the company has achieved numerous research results. As of the end of 2017, Yutong Technology has obtained 208 patents including invention patents, utility model patents and design patents, and participated in 43 countries and The formulation of industry standards.

(2) Broad and high-quality customer resources

Yutong Technology has a large number of high-quality customer resources. The company serves many industries such as food and beverage, electronic communications, household chemicals, and health. Most of its customers are leading brands in various industries, such as Nestle, Dove, Luzhou Laojiao in the food and beverage industry, and Huawei and Samsung in the electronic communication industry. , Sony, Mary Kay in daily chemicals, Infinitus in the health industry, etc.

Paper packaging products not only meet the basic and necessary functional requirements such as protection and cushioning, but also play an important role in enhancing the aesthetics of products and the aesthetic experience of users. Good appearance design is a necessary guarantee for product brand premium. The cooperation between Yutong Technology and leading brands in various industries is of great significance to both parties. The paper packaging products provided by the company provide customer products with functional protection and beautification of commodity packaging. High-quality customer resources are Yutong Technology’s profound Evidence of technical strength, excellent product design, and high-quality product quality will greatly help enhance the company’s reputation and popularity in the industry, and will help the company further expand its high-quality customer base.

(3) Global business layout

Yutong Technology has a complete global production and service system (see Figure 5-). In China, the company has production bases in key cities in East China, North China, South China, and Southwest China. Through a nationwide service network, the distance with customers is shortened, the cycle from product production to delivery is reduced, and industries with a small service radius are broken. Limit, improve response speed and service quality.

Internationally, the company has production bases in Hanoi, Ho Chi Minh, Bac Ninh, Vietnam and Bangalore, India, and a service center in San Jose, USA. The company’s international production and service layout is an important measure to conform to the general trend of global industrial transfer, optimize product cost structure, and enhance brand advantages. It will help brands establish a foothold in China, enter the world, and gradually enhance international competitiveness.

5.2.2 Hexing Packaging
5.2.2.1 Company profile

Xiamen Hexing Packaging and Printing Co., Ltd. (Hexing Packaging) was established in 1993 and has 6 holding subsidiaries. It is a large-scale integrated packaging enterprise covering the entire industrial chain of paper packaging product design, production, sales, distribution and service.
The main products of Hexing Packaging include color boxes, cushioning packaging materials, books and periodicals, corrugated boxes, etc. The main service industries include electronic communications, food and beverage, home appliances, daily chemicals, express delivery, and e-commerce retail. The company has a vast and high-quality customer resources, most of which are leading brands in various industries, including Dell, Yili, Mengniu, Procter & Gamble, SF Express, China Resources, etc.

Hexing Packaging is a well-known brand in the industry. It has successively won honorary titles such as “China Packaging Leading Enterprise” and “Advanced Technology Enterprise”. The company was listed on the Shenzhen Stock Exchange in May 2008. After listing, the company’s management has become more standardized, and its industry influence and brand awareness have been further enhanced. Relying on outstanding brand advantages, broad production capacity layout, advanced production management system, and high-quality product quality, Hexing Packaging ranks in the forefront of the industry, with operating revenue of 6.32 billion yuan in 2017, ranking second only to Yutong Technology .

5.2.2.2 Main products and services

The main products of Hexing Packaging include honeycomb cardboard, pulp molding, books and periodicals, corrugated boxes, etc. (see Figure 5-). In addition, in response to the special needs of customers, the company also offers services such as pre-printing and color printing. Pre-printing is the pre-printing of specific product icons, brand patterns, explanatory text, etc. on the roll of corrugated paper. The company has 5 pre-printing centers nationwide and more than 20 subsidiaries nationwide All are equipped with pre-printing equipment and supporting technology, which can fully meet the needs of customers for pre-printed products.

5.2.2.3 Competitive advantage

(1) Scale advantage
After years of intensive cultivation, Hexing Packaging has developed into a large-scale enterprise with 6 wholly-owned subsidiaries, nearly 30 production bases, and the largest number of corrugated box market segments in the country. The company’s scale advantage has created a favorable economic environment for the company’s further development in terms of raw material procurement and product production services.

In terms of procurement, the cost of raw materials accounts for a relatively large proportion of the production costs of paper packaging products. Therefore, fluctuations in the prices of raw materials in the upstream of the industry have a huge impact on the operating conditions and profitability of paper packaging companies. Relying on its scale advantages and industry reputation, Hexing Packaging has been able to form long-term and stable cooperative relations with upstream suppliers, purchase raw materials in large quantities at lower prices and avoid the adverse effects of price fluctuations, which is conducive to strengthening the management and control of raw material costs.

In terms of production services, Hexing Packaging has a nationwide production service layout, with production bases covering Southwest, Central, South, North, and East China regions (see Figure 5-). The national industrial layout helps the company to narrow the distance with customers, improve service efficiency, the response speed of the supply chain, and strengthen the control of channels.

In addition, the advantage of scale helps Hexing Packaging to produce synergies in R&D, production, sales, logistics and distribution, and lay a solid foundation for the company to continue to build barriers to competition.

(2) Supply chain cloud platform

Hexing Packaging launched the “United Packaging Network” network operation business module in 2017. This module is a supply chain cloud platform built by the company based on “Packaging Industry + Internet”. It aims to integrate the upstream and downstream of the industrial supply chain through the Internet. “,” “business”, “funds” all levels of interconnection, to provide customers with packaged, efficient and convenient product packaging services.
The supply chain cloud platform provides five major services: “Order Bao”, “Chuangketong”, “Chuangketong”, “Collective Procurement Link”, and “You Caitong”. The advantages of the platform are as follows:

①Gather high-quality customer resources for packaging companies in the industry, increase the opportunities for companies to obtain orders, and increase capacity utilization;

②With the help of the platform’s scale advantages, focus on purchasing raw materials for participating packaging companies to avoid the risk of raw material price fluctuations , Reduce procurement costs;

③ fully integrate supplier resources, packaging enterprise resources, and downstream customer resources to enhance information transparency and visibility.

At present, Hexing Packaging’s cloud platform has many cooperative merchants including Coca-Cola, China Construction Bank, Bull, and Jumei Youpin. As the strategic plan of Hexing Packaging’s “10 billion manufacturing, 100 billion service”, the supply chain cloud platform service will help the company promote the process of informatization and intelligentization of packaging services, integrate industry resources, and strengthen industry influence.

China Paper Packaging Industry Research 3

4 Market Trends of China’s Paper Packaging Industry

4.1.1 New Trends of Internet + Packaging

Under the background of China’s intelligent manufacturing, the paper packaging industry has also begun industrial upgrading and transformation development. New development models such as intelligent manufacturing and “Internet +” have begun to take off in the industry.

Automated production lines, digital workshops, and modern logistics have emerged in some enterprises above designated size and formed a certain scale, such as: Shengda Group and Zhubajie.com jointly created The cloud printing service platform is also planning to build a smart factory in the paper packaging industry; as the first Chinese carton enterprise to pass the inspection and acceptance of the Ministry of Industry and Information Technology, Zhejiang Wenzhou Dongjing Technology is building a small and medium-sized enterprise that reduces costs, improves efficiency, and doubles value. Intelligent packaging service platform; Xiamen Hexing Packaging, a leading company in the industry, established the United Packaging Network, which is engaged in the “Internet + Packaging” experiment, and its business is developing well; in addition, many companies such as Meiyingsen, Yutong, Jinjia, etc. All have been injected with Internet genes and entered into markets such as smart manufacturing or cloud printing. The Internetization of the paper packaging and printing industry will bring about tremendous changes, and industry integration will usher in new forces.

black color lift off lid rigid paper box

The lift off lid paper box is black color with the satin finish, which is made of the corrugated board.

With the addition of Internet technology, China paper packaging boxes have been given more functional attributes, and the demand for packaging paper boxes has gradually become diversified and individualized. Under the new trend of “Internet + packaging”, informatization, big data, and intelligent production will greatly improve operational efficiency and reduce costs, while enabling enterprises to provide customers with fast, convenient, inexpensive and high-quality integrated services.

4.1.2 The trend of green environmental protection

E-commerce packaging is one of the important factors driving the development of the paper packaging industry, but due to its excessive growth rate, the waste of resources and environmental pollution problems have also followed. Therefore, under the international trend of low-carbon circular economy, China has also proposed specific targets for low-carbon and emission reduction. On September 14, 2010, the Ministry of Environmental Protection of China and the General Administration of Press and Publication formally signed the “Strategic Cooperation Agreement for the Implementation of Green Printing“. The agreement aims to strengthen support for packaging and printing companies to implement color packaging printing policies, and eliminate outdated printing technology, technology, and improve Capacity.

In 2018, the State Council of China issued the “Opinions on Promoting the Development of the Express Industry” and the “Opinions on Promoting the Coordinated Development of E-commerce and Express Logistics”, clearly requiring the promotion of green packaging and packaging reduction. Green packaging is a high-tech form of packaging. From raw materials to packaging design and manufacturing, to product use and recycling, every link requires resource saving, high efficiency, and harmlessness. Ecological packaging materials have received widespread attention from the world. Their research should be considered from the entire process of development, packaging design, production, use, and disposal. With the continuous popularization and deepening of environmental protection awareness of Chinese companies, traditional printing and packaging materials have been unable to meet market requirements.

Active research and development of environmentally friendly packaging materials is becoming the development trend of the paper printing and packaging industry. In order to better adapt to the market’s demand for environmentally friendly products, China’s technically capable paper printing and packaging companies have begun to conduct research and development on new environmentally friendly materials. The overall paper product packaging industry is moving towards reduction, reuse, recyclable, and degradable products.

4.1.3 Intelligent packaging machinery and equipment and intelligent workflow

With the continuous development and progress of science and technology, microelectronics, industrial robots, image sensing technology and new materials are constantly being integrated into the paper packaging industry. Packaging equipment with high production efficiency, high degree of automation, good reliability, strong flexibility, and high technical content is the current industry has been pursuing. Creating a new type of intelligent packaging machinery and applying it to production on a large scale is the general direction of the future development of the paper packaging industry. At present, although Chinese paper box companies are still in the exploratory stage to enter the field of smart packaging, they have already achieved initial results in some companies. For example, the printed paper box intelligent production line project of Sichuan Ruisen Paper Co., Ltd. will be officially put into production. The workshop of this project uses a BHS fully intelligent corrugated cardboard box production line imported from Germany and 7 Italian fully intelligent linkage lines. Automated production of corrugated cardboard and packaging boxes.

In addition, the leading companies in the industry are also moving closer to digitalization and intelligence in terms of workflow. The digitization and intelligence of the work process of the paper packaging industry are established on the basis of digital information processing and transmission, including image processing technology, digital printing technology, etc., to manage and control related processes. In the information age, the digitization and intelligence of work processes are the management goals of the paper packaging industry. The realization of this goal avoids many complicated procedures in traditional paper packaging, can greatly improve the operating efficiency of paper packaging enterprises, reduce production costs, and fully meet the market’s personalized, timely, and traceable paper printed packaging products. And many other needs.

China’s Paper Packaging Industry Research 2

2.1 Market scale of China’s paper packaging industry

According to Sullivan data, in 2017, the demand for paper packaging of consumer products such as food, beverages (alcoholic beverages) and daily chemicals in China has accounted for more than 60% of the total demand for paper packaging. As an important downstream industry in the paper packaging industry, the demand for paper packaging boxes, cushioning corrugated printed boxes, cartons, printed paper box and other paper packaging products in beverages, food, daily chemical industries and other industries has injected continuous development momentum into the paper packaging industry. The stable development of the market will greatly promote the growth of the paper packaging industry market.

black color high glossy UV varnishing custom paper box

Hight glossy black color outside, with a pretty motorcycle full color printed on the top.

With the growth of China’s gross domestic product and the disposable income of Chinese consumers, China’s food manufacturing and wine, beverage and refined tea manufacturing industries have developed rapidly in recent years. According to data from the National Bureau of Statistics, China’s food manufacturing increased from 1,816.50 billion yuan in 2013 to 2,341.48 billion yuan in 2017, with a compound annual growth rate of 6.6%. At the same time,
from 2013 to 2017, China’s main operating income of the wine, beverage and refined tea manufacturing industry had a compound annual growth rate of 4.1%. China is still the world’s most populous country and its residents’ income continues to increase. It is expected that China’s food and beverage industry will continue to grow. In addition, the daily chemicals, pharmaceuticals, electronic appliances and other industries also have different degrees of growth in 2017. The packaging industry is showing a trend of steady growth driven by consumer spending. As a relatively large sub-industry in the packaging industry, the paper packaging industry will also become a beneficiary of this trend.

Thanks to the good development of downstream industries and the continuous growth of demand for paper packaging, China’s paper packaging industry has maintained a steady upward trend in recent years. According to data from the Sullivan Data Center, the scale of China’s paper packaging market increased from 253.99 billion yuan to 331.09 billion yuan in 2017, with a compound annual growth rate of 6.9%. With the rapid economic development, China is paying more and more attention to green development and sustainable development. In the paper packaging industry, from raw materials to packaging design, manufacturing to product use and recycling, each link can maximize resource saving and high efficiency ,harmless. With the further deepening of the concept of sustainable development, it is estimated that by 2022, the market size of China’s paper packaging industry will reach RMB 542.26 billion.

2.3 Development status of China’s paper packaging industry

China is one of the world’s important producers, consumers and exporters of packaging products. Since 2009, the total output value of China’s packaging industry has surpassed Japan, becoming the world’s second largest packaging industry country after the United States. According to the forecast of the Leopard Research Institute , By 2020, China’s packaging industry may become the world’s largest packaging market.

In the past, China’s paper packaging industry had a problem of uneven regional development. According to Sullivan data, nearly 55% of China’s paper packaging industry was concentrated in the Pearl River Delta, Yangtze River Delta, and Bohai Bay Economic Zone before 2010, with severe overcapacity. This situation has undergone major changes in the past two years. As China has shifted from an export-oriented development strategy to a domestic demand-driven development strategy, industries in the southeast coastal areas have accelerated to transfer to the central and western regions, providing paper printed boxes and corrugated printed cartons, boxes for the central and western regions of China. The industry provides a huge market space.

At present, China has formed five major paper packaging industry regions in the Pearl River Delta, the Yangtze River Delta, the Bohai Bay Economic Zone, the Central Plains Economic Zone and the Middle Yangtze River Economic Belt. These five major paper packaging industry regions account for more than 60% of the national paper packaging industry market scale. At the same time, with the development of the paper packaging industry, environmental protection laws and regulations have become increasingly stringent, and increasingly fierce market competition has gradually reduced the profitability of enterprises, resulting in the gradual elimination of small and medium-sized enterprises, and the number of enterprises in the industry has been decreasing year by year, which has promoted the rationalization of the industrial layout.

According to Sullivan data, the number of enterprises above designated size in the paper and cardboard container manufacturing industry has decreased from 2,696 in 2013 to 2,312 in 2017. There is a clear trend of industry integration, and the proportion of large and medium-sized enterprises has gradually increased. Driven by a number of dominant enterprises, listed companies and enterprise groups with strong international competitiveness, China’s paper packaging industry is led by leading enterprises, and the organizational structure of small and medium-sized enterprises is gradually taking shape. However, compared with the top five paper packaging companies in the United States with a market share of more than 70% and the top two paper packaging box companies in Australia with a market share of more than 90%, the top five paper packaging companies in China have a market share of less than 10%, and the market is concentrated There is still a lot of room for improvement.

With the transition of China’s industrialization from the early and middle stages to the middle and late stages, the ability of China’s paper packaging industry to adapt to market changes has continued to increase, the industry’s growth rate has entered a new period of steady growth, and the ability to adapt to changes in market demand has also been continuously enhanced. China’s paper box industry has gradually formed the industry commonality of overall development, division of labor and cooperation, resource sharing, and common profit. Many companies have cooperated with upstream and downstream in varying degrees to establish good relationships. Through joint ventures, joint stocks, integration and mergers, acquisitions, etc., the scale is expanded, and some work closely with users to evolve a single product packaging service into an integrated packaging service. A group of enterprises have made China’s carton box industry more internationally competitive through forms such as strong alliances, shareholding cooperation, industrial chain extension, foreign acquisitions, cooperation between Chinese and foreign enterprises, and upstream and downstream integration. For example, on June 5, 2018, Hexing Packaging, a listed paper packaging company, paid RMB 718 million yuan to purchase 100% of the shares of Hezhong Creative Packaging Services (Asia) Co., Ltd. Through this acquisition, Hexing Packaging will expand, regional layout, and increase production capacity, so as to better serve customers and achieve horizontal integration of the industry.

2.4 Industry Chain of China’s Paper Packaging Industry

From top to bottom, the industrial chain of China’s paper packaging industry can be divided into upstream raw material suppliers, midstream paper packaging manufacturers, and downstream application industries (see Figure 2-). The upstream raw material suppliers include paper, ink and mechanical equipment providers, the midstream paper packaging manufacturers include design and manufacturing service providers, and the downstream application areas include the food and beverage industry, daily chemical industry, tobacco industry, electronic and electrical industry, pharmaceutical industry and Express delivery industry, etc.

2.4.1 Upstream analysis

The upstream of the paper printing and packaging industry is mainly the papermaking industry that provides base paper products such as ivory paperboard, SBS paperboard, SUS kraft paperboard, double offset paper, art paper, and corrugated paperboard, as well as the chemical industry and packaging machinery that provide printing auxiliary materials such as ink, ink, and glue for the industry. Equipment manufacturing industry. (See Figure 2-).

The paper industry is an important upstream industry in the packaging industry. In the paper printing and packaging industry, depending on the product, the cost of paper raw materials for printing and packaging products ranges from 30% to 80%. Therefore, the development status of the upstream industry, especially the paper industry, and The price of raw paper will have a direct impact on the profit level of the paper packaging industry.

According to Sullivan data, from the fourth quarter of 2016 to the fourth quarter of 2017, the price of corrugated paperboard, an important raw material for paper packaging, continued to rise, from 2,967 yuan/ton to 5,764 yuan/ton (see Figure 2-). It is relatively difficult for companies to adjust prices, leading to a decline in the overall profitability of the industry. In the first half of 2018, the industry’s net profit was 2.41 billion yuan, a year-on-year decrease of 8.6%. In the past two decades, China, as the world’s factory, has exported a large number of overseas textiles and daily-use light industrial products to drive the growth of paper packaging box demand. A large number of paper packaging followed the outflow of these commodities abroad, resulting in a continuous decline in domestic paper packaging holdings. Therefore, China must import a large amount of waste paper from the United States, the European Union, Japan, and even South Korea every year to maintain the balance of supply and demand of paper-making raw materials. Affected by the Sino-US trade war, on August 8, 2018, the Tariff Commission of the State Council of China decided to impose an additional 25% tariff on US imports of approximately US$16 billion, including all types of waste paper. This will impose a 25% tariff on midstream paper. The development of packaging enterprises has brought about undesirable effects such as rising raw material prices and supply shortages, which has caused the profit margin of paper packaging enterprises to decline.

In terms of paper packaging machinery and equipment, the technical level of China’s carton packaging machinery is relatively behind that of Western developed countries, and it is also at a disadvantage in the competition of product development, performance, quality, reliability, and services. The degree of specialization of paper packaging machinery and equipment is relatively high, and there are high technical barriers. The international mainstream equipment has developed in the direction of digitization, networking, high speed and low consumption, environmental protection and humanization. . The machinery and equipment of China’s paper packaging industry are still mostly dependent on imports due to technological backwardness. Therefore, upstream paper packaging machinery and equipment companies have relatively high bargaining power.

2.4.2 Midstream analysis

In the midstream paper packaging industry, due to the low capital and technical thresholds of the paper packaging industry, small paper packaging companies at the bottom of the industry chain have a large number of low-grade products, serious product homogeneity, fierce competition, and profit The level and bargaining power are relatively low. Due to their scale advantages and stronger technical strength, large enterprises in the industry have higher resilience to the impact of tightening environmental protection policies and rising raw material prices. Yutong Technology, Hexing Packaging, Donggang Co., Ltd., And other leading companies gradually stand out in the industry, and the market concentration is further improved. , These high-end paper packaging  box companies have the advantages of large scale, low raw material procurement costs, high technological level, short supply of products and high added value, etc., so they have higher profit levels and bargaining power in the industry. In the long run, with the strengthening of the cost control ability of enterprises in the industry, the improvement of product and service quality, the application and continuous optimization of informatization and automation technology, the transformation of business models, as well as the increasing improvement of the industry structure and the increasing concentration of the industry With gradual improvement, the overall profit level of the paper packaging industry will become increasingly stable.

2.4.3 Downstream analysis

The downstream of China’s paper packaging industry chain are mainly food, beverage, daily chemicals, medicine, stationery, electronic appliances and express delivery industries. Among them, the consumer electronics industry, food, tobacco and alcohol industries have relatively large demand for paper packaging boxes. On the one hand, the rapid growth of downstream industries directly drives the demand for paper-based packaging products, thereby promoting the development of the paper-based printing and packaging industry; on the other hand, the continuous changes in downstream industry demand will promote continuous technological innovation of paper-based printing and packaging companies. At the same time, with China’s economic development and the growth of per capita disposable income, the tobacco and alcohol industry has a huge demand for paper packaging products, which will also provide strong support for the demand for paper printed boxes.

With the substantial improvement of Chinese people’s living standards, the demand structure of consumers is transforming and upgrading, and the demand for packaging products has also been upgraded from the original simple packaging protection function requirements to reflect product quality and consumer grade requirements. The downstream customers of large paper packaging companies are mostly large high-quality customers. Such customers have high brand awareness and strong profitability, and have high requirements for paper packaging quality and supply stability. Under the new consumption trend, downstream customers will inevitably put forward higher product requirements for paper box suppliers, not only requiring paper packaging companies to provide a full range of custom paper boxes, but also requiring paper packaging companies to have product design capabilities and provide printing and packaging services. The ability to advance to the development and design stage of packaging products, through creative design and R&D innovation, to more closely integrate packaging products and end products, improve the quality, functionality and exquisiteness of packaging products, thereby continuously improving downstream end customers The brand image and added value of the product. From this point of view, customer demand in downstream application industries has an important development-oriented role for midstream paper packaging companies, and therefore has a higher bargaining power in the industry chain.