China's Packaging Machinery Needs to Improve Compared with Foreign Products

China's packaging machinery industry is facing significant challenges despite its growing presence in the global market. Currently, the export value of packaging machinery accounts for less than 5% of the total output value, while the import value is nearly equal to the total domestic production. This gap highlights a major demand shortfall within the country, as Chinese-made packaging machinery still lags behind foreign counterparts in terms of technological advancement, performance, and reliability. Domestic products often lack high-tech features, precision, and quality, resulting in poor stability, shorter lifespans, and unattractive designs. The industry consists of nearly 7,000 companies, but only about 2,000 are considered stable. Each year, approximately 15% of these companies either close down or switch industries, while an equivalent number of new firms enter the market. There is a noticeable absence of leading enterprises with annual sales exceeding 100 million yuan, with only a dozen companies reaching that level and around 50 firms generating over 30 million yuan annually. In terms of research and development, most companies remain at the stage of imitation and testing, lacking strong independent innovation capabilities. Research investment is only about 1% of sales, far below the 8–10% seen in developed countries. To enhance the overall strength of China’s food packaging machinery sector and enable it to compete globally, industry experts suggest three key strategies. First, the focus should be on developing high-end manufacturing and building well-known brands. Companies must invest in core R&D, break through critical technical barriers, and seize future industry opportunities to ensure sustainable growth. Second, improving the quality and efficiency of industrial development is essential for shifting toward a more advanced economic model. With low export volumes and a trade deficit of $1.35 billion last year, many companies are still stuck at the low end of the value chain, relying on cheap labor and simple processing. Rising costs, energy shortages, and stricter environmental regulations are gradually eroding traditional competitive advantages. Third, strengthening common technology research is crucial for boosting innovation. However, current efforts in this area are fragmented, lacking systematic approaches and long-term planning. Institutional barriers and commercial interests have hindered the formation of effective research frameworks, limiting meaningful progress. The root cause of the industry’s struggles lies in insufficient R&D investment, which has discouraged foreign investors from entering the Chinese market. Additionally, concerns about product safety and regulatory compliance have made foreign buyers hesitant to trust Chinese goods. As a result, China’s exports of food packaging machinery are expected to decline further unless significant improvements are made. If no substantial changes occur, the industry risks becoming a declining sector, struggling to keep up with global standards and international competition.

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