Functional BOPP film refers to biaxially oriented polypropylene film with certain special functions, including heat-sealing film, pearlescent film, metallization film, matting film, etc.
First, the development of the industry market
Functional BOPP films are classified as BOPP films. Continental BOPP film began to develop in the 80s of the 20th century, and there were only a few small-scale manufacturers in China with an annual output of about 3,000 tons, and they were mainly concentrated in South China and North China. Subsequently, with the rapid development of China's economy, the market demand for BOPP film grew rapidly, the price of domestic BOPP film products continued to rise, and many enterprises began to enter the BOPP film industry, and the scale of the BOPP film industry began to expand. However, at that time, most of the enterprises in the BOPP film industry in mainland China invested a lot of money to introduce foreign production lines to expand production capacity and increase output, and the products produced were mostly mature general products. Until with the development of the national economy and the improvement of people's living standards, higher functional requirements for BOPP film were put forward in China, and some enterprises with a certain amount of technology accumulation began to change their business ideas, concentrate on tackling key technical thresholds, and develop and produce functional BOPP films. According to the data, the output of BOPP film in mainland China in 2022 will be 4.599 million tons, a year-on-year increase of 12.83%. Most of them are ordinary films, while functional films are still in the minority.
Data source: Compiled by Guanyan Tianxia
At the same time, with the continuous development of the downstream industry, the apparent consumption of BOPP film in mainland China has continued to rise in recent years. According to the data, the apparent demand for BOPP film in mainland China in 2022 will be 4.135 million tons, a year-on-year increase of 11.28%.
Data source: Compiled by Guanyan Tianxia
As a subdivision of BOPP film, functional BOPP film has basically been consistent with the BOPP film industry in recent years. According to data, the apparent consumption of functional BOPP films in mainland China from 2020 to 2022 is 749,700 tons, 815,200 tons, and 826,800 tons, and it is expected that the market demand for functional BOPP films will continue to rise in the next five years. At the same time, although the functional BOPP film market has high technical content, long R&D cycle, and rapid market demand, due to changes in the market environment since 2022, the current industry pattern of functional BOPP film in mainland China has gradually changed from a shortage of supply in the early stage to a balance between supply and demand.
Data source: Compiled by Guanyan Tianxia
Second, the downstream market situation of the industry
According to the "In-depth Research and Development Prospect Forecast Report on the Status Quo of China's Functional BOPP Film Industry (2023-2030)" released by Guanyan Report Network, the downstream applications of functional BOPP film are relatively wide, and the downstream industry has a broad market space. In addition, functional BOPP films continue to expand their application fields, and the demand for functional BOPP films is strongly driven by the broad market space of downstream industries and the continuous increase in application fields. At present, the development of functional BOPP film is closely related to downstream packaging and printing, food and beverage, consumer electronics, daily chemical products and other industries. The development of related industries is as follows:
1. Packaging and printing industry
(1) Overview of the development of the packaging industry
Packaging refers to the general name of containers, materials and auxiliary materials used in a certain technical method to protect products, facilitate storage and transportation, and promote sales in the process of circulation; It also refers to the operation of applying certain technical methods in the process of using containers, materials, and auxiliary materials to achieve the above purposes. The packaging industry can be divided into plastic packaging, paper packaging, metal packaging, glass packaging and other sub-industries according to the packaging material or type. According to the classification of packaging materials, it is mainly divided into paper packaging, plastic packaging, metal packaging, glass packaging, etc.
In recent years, with the improvement of production technology, technical level and the popularization of green environmental protection concept, the application range of packaging products has become more and more extensive. At present, the packaging industry has been an industry with an income of more than one trillion yuan, and it is an important industry to promote the development of the national economy in the mainland. According to the data, in 2022, the cumulative operating income of enterprises above designated size in the national packaging industry will be 1,229.3 billion yuan.
Data source: Compiled by Guanyan Tianxia
(2) Overview of the development of the printing industry
The printing industry is an important part of the mainland's national economic system, with an annual output value of more than one trillion yuan, ranking second in the world. In recent years, the printing industry in mainland China has generally maintained stable growth. According to the data, the total output value of the printing industry in the mainland was 1.3 trillion yuan in 2019, 1.38 trillion yuan in 2021, and the output value will further expand to 1.42 trillion yuan in 2022.
Data source: Compiled by Guanyan Tianxia
At present, green printing has also become one of the important themes of the development of the printing industry, and the printing industry has gradually promoted the use of green and low-carbon new technologies, new processes and new materials, and encouraged printing enterprises to use low-VOCs related materials. Green printing has higher requirements for the environmental performance of printing materials, and more environmentally friendly functional BOPP films are recognized by downstream industries.
2. Food and beverage industry
Food and beverage packaging is one of the main application areas for functional BOPP films. Functional BOPP films have unique advantages in the fields of confectionery and biscuits, fresh vegetables and fruits, and beverage packaging; For example, the non-adhesive film is widely used in liquor, milk packaging, etc. In order to meet the high demands of consumers for packaging convenience, manufacturers will be more meticulous in the selection and performance of food packaging and its materials. Functional BOPP films with high technical content, good use effect, environmental protection and harmless environmental protection and lightweight BOPE environmentally friendly packaging materials are favored by the food packaging industry. The stable development of the food and beverage industry and its broad market space can greatly drive the demand for BOPP film.
(1) Food manufacturing
Food manufacturing industry refers to grain and feed processing industry, vegetable oil processing industry, sugar industry, slaughtering and meat and egg processing industry, aquatic product processing industry, edible salt processing industry and other food processing industries. From 2017 to 2021, the operating income of the food manufacturing industry above designated size in mainland China maintained a stable growth, although the growth rate showed some fluctuations, but the four-year average growth rate reached 5.16%, and the operating income of food manufacturing enterprises above designated size increased from 1,741.400 billion yuan in 2017 to 2,126.810 billion yuan in 2021.
Data source: Compiled by Guanyan Tianxia
(2) Wine, beverage and refined tea manufacturing
From 2017 to 2021, the operating income of the wine, beverage and refined tea manufacturing enterprises above designated size in the mainland maintained an overall growth, although there was a decline in 2019 and 2020, but the four-year average growth rate reached 3.08%, and the operating income of the wine, beverage and refined tea manufacturing enterprises above designated size increased from 1,427.840 billion yuan in 2017 to 1,603.400 billion yuan in 2021.
Data source: Compiled by Guanyan Tianxia
The steady growth of the food and beverage industry has become one of the main drivers of the development of the BOPP film and functional BOPP film industry. In addition, with the improvement of consumption level and scientific and technological level, consumers have put forward higher requirements for packaging, and the trend of environmental protection has been further strengthened, and more environmentally friendly functional films in the packaging process have been widely used.
3. Consumer electronics industry
The consumer electronics industry is an important downstream industry for functional BOPP films. The demand for functional BOPP film in consumer electronics is mainly reflected in product packaging, process consumables, labels, etc.
In recent years, driven by factors such as the continuous development of mobile Internet technology, the improvement of the manufacturing level of consumer electronics and the increase in the income level of residents, the consumer electronics industry has maintained a large market size. From 2017 to 2021, the retail sales of consumer electronics in mainland China generally maintained growth, and although there was a slight decline from 2018 to 2020, the retail sales of consumer electronics products in 2021 ushered in a climb, with a year-on-year increase of 7.86%. In the future, with the integration of emerging technologies such as 5G, Internet of Things, artificial intelligence, virtual reality, and new display with consumer electronics, product upgrading will be accelerated, and new product forms will be born, and the scale of the consumer electronics market will remain at a large level. The vast market space of consumer electronics can drive the demand for functional BOPP films.
Data source: Compiled by Guanyan Tianxia
4. Daily chemical products industry
Daily chemical products include personal care and home care products, including cosmetics, oral cleaning products, soaps and detergents, fragrances, etc., which is one of the important application industries of functional BOPP film.
In recent years, the sales of daily chemical products have maintained a rapid growth trend. According to the data, from 2016 to 2020, the average annual growth rate of retail sales of daily chemical products in mainland China was 9.75%, and the retail sales of daily chemical products increased from 440.335 billion yuan in 2016 to 638.197 billion yuan in 2020. Due to the rapid development of the daily chemical products market, the market demand for functional BOPP films has been effectively driven.
The daily chemical products market has a broad space, and some of its subdivisions such as the cosmetics market still have great development potential. According to relevant data, the current per capita cosmetics consumption of Chinese is 50 US dollars, which is only 11%, 16%, 17% and 18% of Hong Kong, Japan, Norway and the United States, and China's cosmetics industry still has a lot of room for improvement. Zhuochuang Information predicts that the development rate of China's cosmetics industry will be 5%-20% in the next five years. The development of daily chemical products will greatly support the demand for functional BOPP film market.
5. Emerging application fields
With the continuous accumulation of technology, in recent years, BOPP films have gradually broken through the functions of electrical, magnetic, optical, high temperature resistance, low temperature resistance, barrier, modified atmosphere, antibacterial, fire and flame resistance, and high safety, and functional BOPP films are increasingly used in new energy batteries, electronics, optical displays, semiconductor lighting, solar energy, OLED, medical, home decoration and other industries.
For example, with the unique microporous structure of functional BOPP films, a specific spherical structure on the surface creates a high reflection of light, allowing the film products to extend to reflective films in liquid crystal display backlight modules and reflective films for semiconductor lighting. Functional BOPP film has better softness and bending resistance, and is suitable for curved surface display, which can be used in LCD TVs, computers, mobile phones, automotive industrial control displays, semiconductor lighting and other fields.
Source: Guanyan Tianxia (WW)