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

China's packaging machinery industry is currently facing significant challenges in terms of both technological development and market competitiveness. Although the export value of Chinese packaging machinery remains below 5% of the total output, the import volume is roughly equal to the total domestic production. This indicates a substantial gap between China’s domestic packaging machinery and foreign counterparts, with the latter offering higher technological standards and better performance. As a result, China still heavily relies on imported equipment to meet its growing demand. In terms of product variety, there are approximately 1,300 types of food packaging machinery available in China, but most lack high-tech features, precision, and quality. The products often suffer from poor stability, short lifespans, and unattractive designs. These shortcomings make it difficult for domestic manufacturers to compete effectively in the global market. From a business perspective, out of nearly 7,000 companies in the sector, about 2,000 are not stable enough, with nearly 15% closing or converting each year. Meanwhile, a similar number of new companies enter the industry annually. However, the industry lacks major players—only a dozen companies have annual sales exceeding 100 million yuan, and around 50 companies generate over 30 million yuan in revenue. This fragmentation weakens the overall strength of the sector. Research and development (R&D) capabilities remain limited, with most companies still operating at a test-imitation stage. Domestic R&D investment accounts for only 1% of sales, compared to 8–10% in developed countries. This underinvestment hampers innovation and limits the ability to develop cutting-edge technologies. To improve the industry’s global standing, three key strategies are recommended: First, the industry should focus on developing high-end manufacturing and building strong brand recognition. By investing in core R&D and breaking through critical technical barriers, China can seize the leadership position in future industry trends and ensure long-term growth. Second, improving the quality and efficiency of industrial development is essential for transitioning to a more sustainable economic model. Currently, China's exports of food packaging machinery remain low, with a trade deficit of $1.35 billion last year. Many companies are still stuck in low-value, labor-intensive operations, which limits their ability to compete globally. Rising costs, energy shortages, and stricter environmental regulations are further eroding China’s competitive advantages. Third, strengthening research into common industrial technologies is crucial for boosting innovation. However, current efforts in this area are fragmented and lack systematic planning and policy support. Due to institutional and commercial barriers, general technology research has not been able to scale up, leading to limited progress. The main challenge lies in insufficient R&D capacity, which prevents Chinese products from gaining international trust. Additionally, regulatory gaps in food safety and packaging standards make foreign businesses hesitant to invest in or purchase Chinese-made equipment. If these issues are not addressed, China’s food and packaging machinery industry may gradually lose its export potential and eventually become a declining sector.

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