Packaging Bonanza as One Child Policy Ends

The end of China's one-child policy herald's the beginning of a baby boom in the world's most populous nation. Estimates lead to expectatsions of 6 million additional births per year, from 2017, for at least a decade.

With an average 34% of Chinese family expenditure in the first five years of a child's life being on milk products, including milk powder and baby formula (and hasn't that been in the news lately), New Zealand and Australian milk exports will rise.

 

The biggest winner - globally - is expected to be New Zealand. Milk powder is already New Zealand’s largest export, China its largest market and Fonterra, New Zealand’s largest export income earner.

Practically all milk powder and milk products are exported in fibre packaging, including bags and sacks, as well as corrugated boxes, most of which are made from virgin fibre, for strength reasons.

As milk product exports grow, so too will the packaging materials in which they are exported. 

Production expansion in the region, to meet the new demand, is possible. Industrial grade bag and sack expansion is already underway, with both Oji Fibre Solutions (formerly Carter Holt Harvey Pulp, Paper & Packaging) and Orora currently building their production capacity for supply to New Zealand’s dairy industry.

Supplier opportunities, throughout the value chain of both the dairy and packaging industries will be significant.

This is an edited extract from the November edition of the monthly  Pulp & Paper Edge. More detailed analysis, including latest market data and intelligence is available exclusively to subscribers.

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