In recent years, the flexible packaging gravure industry has faced increasing competitive pressure. Affected by upstream industries such as raw materials and downstream customers, the operating space for flexible packaging gravure companies has been shrinking. Rising labor costs, high employee turnover, and intensified homogenized competition have made it harder for businesses to maintain profitability. Moreover, the industry must now navigate a growing number of environmental, safety, and health regulations. Despite a slight increase in revenue for some leading companies in 2013 and the first half of 2014, profits remained stagnant or even declined. Many small and medium-sized enterprises saw both revenue and profit fall, with some newly purchased equipment operating at very low utilization rates.
In this challenging environment, more and more flexible packaging gravure companies are realizing that they must deeply understand real market demands, implement structural adjustments, and upgrade their technologies to improve efficiency and competitiveness. Under the green development trend, the shift from traditional processors to full solution providers represents a crucial historical opportunity for the industry.
Challenges and Opportunities Facing the Flexible Packaging Gravure Industry
1. Low Carbon, Environmental Protection, and Energy Saving
The printing industry is one of the key sectors for air pollution control in China, with annual VOC emissions reaching around 6 million tons. Emissions from flexible packaging gravure operations not only waste renewable resources but also worsen environmental pollution. In response to severe smog issues, national and local authorities have introduced stricter environmental regulations in recent years. Additionally, many international companies are developing sustainable packaging strategies, placing higher demands on suppliers regarding carbon footprint and eco-friendliness. Some global clients now require flexible packaging gravure companies to provide detailed data on CO2 emissions from their products. International standards like carbon labels and carbon footprint systems are also putting pressure on domestic manufacturers. Therefore, low-carbon, eco-friendly, and energy-efficient practices are no longer just trends—they are essential realities for the industry.
2. Health and Safety Concerns
As society progresses, public awareness of food safety has grown significantly. The requirements for the hygienic and functional safety of packaging materials have become increasingly strict. Packaging must now offer better protection, and the scope of these requirements continues to expand. For example, many customers demand proof of biosafety and chemical stability from authoritative institutions. With growing consumer demand for safe and healthy flexible packaging, the call for environmentally friendly materials and processes has become a strong societal expectation.
3. Cost Pressures
The main raw materials used in flexible packaging gravure include plastics, films, inks, adhesives, and solvents—most of which are petroleum-based and have seen rising prices. Labor costs have also increased significantly, further squeezing the margins of smaller companies. Younger generations, particularly those born in the 1980s and 1990s, are becoming a vital part of the workforce. However, the industry still faces challenges such as poor working conditions, relatively low income, and high operational responsibilities, making it less attractive to younger workers. This weak appeal leads to talent shortages and instability in human resource management.
4. Increasing Market Concentration Among End Users
International multinational corporations entering the Chinese market have gained significant market shares due to their strong financial backing and advanced marketing strategies. These companies often prefer to partner with suppliers on a global scale, creating new opportunities for domestic flexible packaging gravure firms. However, the dominance of these large players also increases the pressure on local businesses to innovate and differentiate themselves in order to remain competitive.
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