Will the market concentration in the BOPP thermal synthetic paper industry increase?

Whether the market concentration of the BOPP thermal synthetic paper industry will increase can be analyzed from the following aspects:

First,Market status

BOPP thermal synthetic paper is a special application of BOPP film, and its market status is affected by the whole BOPP film industry. At present, the BOPP film industry in China has shown rapid development and large-scale, collectivized competition pattern. General BOPP film market competition is higher, the technical entry threshold is relatively low, and the demand for functional film is increasing, some products are heavily dependent on imports, and the industry technical barriers are relatively high.

Second, market concentration analysis

1.Increased capacity concentration:

According to relevant reports, the capacity concentration (CR10) of China's BOPP industry has gradually increased in recent years. For example, as of May 2024, the production capacity of BOPP Group enterprises has accounted for 46% of the total production capacity of the industry, which is mainly due to the group enterprises in the industry such as Jintian New materials, China flexible packaging, Fulong new Materials, etc., while expanding the domestic regional market, they continue to expand the original market scale.

2.Number and scale of enterprises:

There are many production enterprises in the BOPP film industry, but the number of major enterprises with relatively large production capacity is limited. With economies of scale, technological prowess and brand influence, these large players have a significant position in the market and are expected to further increase market concentration.

Third, market development trend

1.Technological Progress and Innovation:

With the continuous progress and innovation of technology, the development of high-end functional products such as BOPP thermal synthetic paper will meet the diversified needs of the market. This will prompt enterprises in the industry to increase investment in research and development, improve the added value of products, and thus enhance market competitiveness.

2.Environmental Protection and Sustainable Development:

With the global emphasis on environmental protection and sustainable development, the BOPP thermal synthetic paper industry will also face higher requirements. This will encourage enterprises to adopt environmentally friendly raw materials and production processes, and develop lightweight and environmentally friendly new products to meet market demand and national policy guidance.

3.Market Integration and M&A:

In the context of increasingly fierce market competition, enterprises in the industry may expand their scale and increase their market share through integration and mergers and acquisitions. This will help increase market concentration and form more competitive conglomerates.

Fourth,Conclusion

In summary, the market concentration of the BOPP thermal synthetic paper industry is expected to gradually increase in the future. This is mainly driven by the scale expansion of large enterprises in the industry, technological progress and innovation, as well as market integration and mergers and acquisitions. However, the speed and extent of the specific increase will be affected by a variety of factors, including changes in market demand, policy guidance, and international market competition. Therefore, it is necessary to pay close attention to market dynamics and policy changes in order to adjust market strategies and product layouts in a timely manner.