From the industrial chain point of view, the upstream of packaging and printing industry is mainly paper-making, equipment manufacturing, paper packaging and printing industry; downstream links cigarettes, IT electronics, food and beverage industries.

The printing industry downstream of the industrial chain can be further divided into packaging printing, publication printing and commercial printing. In the field of packaging printing, cigarette label printing, wine label printing and other paper packaging such as pharmaceuticals, daily necessities, electronic products are the main sources of demand for packaging printing.

At present, the main supporting industries are as follows:

Express Packaging Industry

The first is the fast-growing and momentum express packaging industry. With the rapid development of Internet commerce, express packaging industry is an important related industry that it breeds.

Due to the high degree of standardization and quick start of storage and transportation packaging, reviewing the business structure of leading enterprises such as international paper industry and American international packaging, storage and transportation packaging is the main driving force for their business growth.

In China, the manufacturing and exporting of industrial products has been the main engine driving the growth of packaging demand for storage and transportation, but since 2011, the main momentum of its growth has shifted to express packaging demand formed by the development of e-commerce business.

Online commodities can not be separated from offline express delivery and logistics distribution. Domestic developed logistics system also provides strong support for increasing the penetration of e-commerce year by year.

Since 2011, there has been a blowout growth in the volume of express delivery business above the scale in China. From January to October 2018, the business volume of express service enterprises in China totaled 39.43 billion pieces, an increase of 26.6% over the same period of last year, and the business income totaled 478.05 billion pieces, an increase of 23.5% over the same period of last year.

Tobacco Label Printing Industry

There is also the traditional big brand tobacco label printing industry. As the world's largest tobacco industry manufacturing and sales market, tobacco label printing industry has been accounting for a considerable proportion of the printing industry, according to statistics in October 2018, the national output of cigarettes was 182.46 billion, an increase of - 1.7% year-on-year.

But the old brand tobacco label printing industry, like many traditional industries, is also facing many challenges. The new challenges faced by tobacco label industry come from the following two aspects:

Firstly, the price of tobacco bid may decline to some extent due to the fierce competition among enterprises because of the implementation of national public bidding and bidding in tobacco bid industry.

Second, rising raw materials for tobacco standard production and possible inflation lead to increased costs of procurement, process, electricity, transportation, sales, labor and so on.

Beer label printing market

China is the country with the largest beer production and the largest beer consumer in the world. Its total sales exceed 25% of the world's total beer sales. China's beer consumption has entered a mature period.

The increase of the elderly population in China, together with the restrictions on drunk driving issued by the state, "eight regulations" and open-air barbecue cleaning policies have had a certain impact on beer consumption in the past few years. It is expected that beer production in China will remain basically stable for some time to come. It is closely related to the development of beer label printing market.

With the increase of residents'income, consumers' consumption habits and consumption structure are constantly changing. Especially, consumers'demands on food safety and product quality are getting higher and higher, and their pursuit of brand is becoming stronger and stronger. They emphasize "sensory" consumption, fashion, health and personalized and differentiated new groups become beer. As an important component of the consumer group, the income level of domestic beer per ton of liquor will continue to increase in the future.

Increased revenue per ton of liquor means an increase in unit price of beer, including an increase in overall parity and a structural change in the proportion of high-end beer. The rising unit price of beer has a positive impact on the price and gross profit space of beer label. Especially high-grade beer puts forward higher requirements on the printing technology, anti-counterfeiting technology and design level of beer label, which brings benefits to high-end printing enterprises.

Other Paper Packaging Markets for Pharmaceuticals, Commodities, Electronic Products, etc.

The industries requiring paper packaging, such as pharmaceuticals, daily chemical industry, electronic products and food, are also the downstream industries of packaging and printing. The demand for paper packaging technology, quality and technical content of high-grade cosmetics and electronic products is gradually increasing, and they are becoming more and more similar to tobacco and wine labels, which can not be ignored in packaging and printing industry.

In addition, the impact of new business models such as e-commerce and Internet of Things has brought new demands for logistics packaging, new commodity packaging and printing technology. In 2018, China's Internet of Things, cold chain logistics and other fields will be further developed and tended to improve. China's online shopping of frozen food, normal temperature food, raw and auxiliary food materials and other commodities will continue to maintain a rapid growth trend, and will continue to bring substantial demand growth for packaging and printing industry.

From the perspective of industry development space, there is still a certain space for development, but from the perspective of industry competition, especially the changes of intra-industry company competition, it will form a pattern of fierce competition, some backward enterprises will be eliminated, while technological advantages are obvious, shareholders pay attention to returns, and can break into the new technology packaging, open the rules of market possession. Modeling companies will continue to reflect the trajectory of development.

Generally speaking, the market fluctuations of the above industries are generally consistent with the macroeconomic cycle, especially the retail business cycle. Influenced by the decline of the national economic growth rate, the growth of consumer demand is not strong, but the structural growth of high-end products in various industries still has great potential with the goal of doubling the income of residents.