Food-grade paperboard will continue to perform well in the coming years. Cupstock can be categorized as food grade because it meets food safety standards and is made from virgin pulp with PE coated.
On the one hand, this is because of the rising demand for Cupstock. This is related to the increased environmental awareness of the population. Many countries, including China, have introduced "paper instead of plastic" policies. China has called for the promotion of bio-based products such as straw-laminated lunch boxes that meet performance and food safety requirements in the catering takeaway sector, and food-grade paperboard is one of the alternative routes available. China's production of specialty food wrappers has grown from 1.07 million tonnes in 2011 to 2.37 million tonnes by 2020. The downstream demand for food-grade paperboard mainly includes tea drinks, coffee cups, dairy products (liquid packs), and food packaging categories (instant noodle bowls, pastries, cold drinks, and other beverages). Overall, the growth rate of cupstock will continue to maintain high growth.
Below Picture: Food packaging paper production and growth rate (10,000 tonnes, %)
In addition, in terms of production capacity, PE coated paper is less volatile and more sticky for customers. In 23/24/25 years food-grade paperboard new production is expected to be 1.65/30/91 million tonnes, incremental demand is greater than the supply of new production capacity and is expected to have upward elasticity for 23-25 years food-grade paperboard prices.
At present, a large number of capital strength of the listed companies pouring into the track. There will be more leading capital invested in food-grade paperboard. Food-grade paperboard track growth is strong, the leading expansion and new entry capacity is more, and is expected to 23-25 years will have the project successively put into production, and capital expenditure gradually improve. However, in the long run, the supply and demand pattern is expected to normalize as demand lifts. In the future, cupstock has a good period of development space.
Post time: Jul-28-2023