Analysis of the economic operation of my country's plastic processing industry in 2023

 

In 2023, facing the complex and severe international environment and the arduous and heavy tasks of domestic reform, development and stability, China's economy withstood external pressure and overcame internal difficulties, and showed a continuous upward trend overall. In line with the characteristics of "seeking progress in stability, promoting stability through progress, and establishing first and then breaking" in the overall economic development, my country's plastic processing industry has shown a "steady and gradual" development trend.

 

Table of Contents

I. Overall Operation

II. Analysis of Plastic Product Output in 2023

(I) Annual Output of Plastic Products in my country

(II) Monthly Output of Plastic Products in my country

(III) Output of Products in Each Segment of Plastic Products

(IV) Output of Plastic Products in Each Region in my country

(V) Output of Plastic Products in Each Province in my country

(VI) Output of Special Equipment for Plastic Processing in China

III. Analysis of Benefits of Plastic Processing Industry in 2023

IV. Analysis of Exports of Plastic Products in 2023

V. Major Difficulties and Problems in the Industry

VI. Forward-looking Analysis of the Industry and Development Suggestions

 

The text is as follows:

 

Analysis of Economic Operation of Plastic Processing Industry in my country in 2023

 

——China Plastic Processing Industry Association

 

I. Overall Operation

 

With the continuous growth of China's economy, my country's plastic processing industry is in a relatively stable state of development. According to data from the National Bureau of Statistics, in 2023, the total output of enterprises in my country's plastic products industry was 74.885 million tons, a year-on-year increase of 3.0%. In 2023, the industry as a whole will develop in the direction of "five-in-one" innovation, namely, functionalization, lightweight, precision, ecology and intelligence. The utilization rate of production capacity will continue to increase, and the process of digital transformation will be accelerated. It is analyzed that the market size of my country's plastic processing industry will be stable and improving, and the output and consumption of plastic products will maintain a relatively steady growth.

2. Analysis of plastic product output in 2023

(I) Annual output of plastic products in my country

 

According to data from the National Bureau of Statistics, in 2023, the national plastic products industry will have a total output of 74.885 million tons, a year-on-year increase of 3.0%, and there is still potential for growth. In terms of output growth rate, it is basically the same as the growth rate of 3.9% in 2019 before the epidemic. See Figure 1 for details.

Summary statistics of the national plastic products industry in 2023

 

In 2023, the Ministry of Industry and Information Technology and other three departments jointly issued the "Work Plan for Stable Growth of Light Industry (2023-2024)", which proposed that the average growth rate of light industrial added value in 2023-2024 will be about 4%, and the operating income of enterprises above the designated size will exceed 25 trillion yuan. As one of the pillar industries of my country's light industry, the plastic processing industry's year-on-year growth rate of output in 2023 closely follows the average growth rate of light industry added value, which is basically in line with the expected target. With the support and guidance of national policies and the growth of demand in downstream industries, the plastic industry will continue to maintain stable growth. It is worth noting that since the entire industry is still in the rising stage, in the face of various potential adjustments, it is necessary to accelerate the optimization of industrial structure, strive for innovation, seize the "window period" of transformation and upgrading, and promote green and sustainable development.

(II) Monthly output of plastic products in my country

 

In 2023, the monthly output of plastic products showed a curve trend of "first suppression, then rise, and then stabilize". Affected by the epidemic at the beginning of the year, the monthly decline gradually narrowed until the end of the first quarter. With the gradual implementation of various "stabilizing growth" policies issued after the State Council's executive meeting in June, the monthly output in the second half of the year maintained a year-on-year growth trend, especially in July, the output increased by 9.8% year-on-year, an increase of 5.8 percentage points from June. See Table 1 and Figure 2 for details.

 

Monthly production table of plastic products in China in 2023

 

Year-on-year and cumulative growth of monthly production of plastic products in China in 2023

 

(III) Production of products in various sub-sectors of plastic products

 

Specifically, the production of products in various sub-sectors of plastic products, including plastic sheet and tube profiles, plastic wire ropes and woven products, plastic packaging boxes and containers, plastic parts and other plastic products, was 46.517 million tons, still accounting for the highest proportion, reaching 62.1%; followed by plastic film, with a production of 16.954 million tons, accounting for 22.6%, of which the production of agricultural film was 821,000 tons, a year-on-year increase of 6.8%. In addition, the production of foam plastics increased by 6.1% year-on-year, the production of daily plastics decreased by 7.1% year-on-year, and the production of plastic artificial leather and synthetic leather decreased by 1.1% year-on-year. See Table 2 for details.

Output, growth rate and proportion of products in the sub-sectors of plastic products nationwide in 2023

 

The five provinces with the highest annual output of plastic film are: Zhejiang Province, Guangdong Province, Jiangsu Province, Fujian Province, and Shandong Province; the five provinces with the highest output of agricultural film are: Shandong Province, Yunnan Province, Gansu Province, Guangdong Province, and Hubei Province; the five provinces with the highest output of foam plastics are: Guangdong Province, Zhejiang Province, Jiangsu Province, Fujian Province, and Henan Province. It is worth noting that as the two major producing provinces of daily plastic products, the annual output of this sub-category in Guangdong Province decreased by 4.4% year-on-year, and the annual output of this sub-category in Zhejiang Province decreased by 7.5% year-on-year. As the main producing province of plastic artificial leather and synthetic leather, the annual output of this sub-category in Fujian Province increased by 1.4% year-on-year, and the annual output of this sub-category in Guangdong Province increased by 11.7% year-on-year, but the slight decline in most major producing areas still affected the annual output.

 

(IV) Plastic product output in various regions of my country

 

From a regional perspective, in 2023, the output of plastic products in the 11 eastern provinces (statistics do not include output in Hong Kong, Macao and Taiwan) was 47.378 million tons, a year-on-year decrease of 0.9%, accounting for 63.3% of the national total, an increase of 1.8 percentage points compared with the national total in 2022; the output of plastic products in the six central provinces was 14.89 million tons, a year-on-year decrease of 9.5%, accounting for 19.9% ​​of the national total, a decrease of 1.6 percentage points compared with 2022; the output of plastic products in the 12 western provinces was 11.097 million tons, a year-on-year decrease of 5.2%, accounting for 14.7% of the national total, a decrease of 0.4 percentage points compared with 2022. See Table 3 for details.

 

Plastic product output in various regions of my country in 2023 and their national share

 

(V) Plastic product output in various provinces of my country

 

From a provincial perspective, Guangdong Province, Zhejiang Province, Jiangsu Province, Hubei Province, Shandong Province, Fujian Province, etc. are still the traditional major provinces of plastic products in my country. Among the top ten provinces and regions in the country in terms of plastic product production in 2023, the eastern region accounts for half. Guangdong Province completed an annual output of 14.507 million tons, a year-on-year increase of 2.5%, accounting for 19.4% of the country; Zhejiang Province completed an annual output of 12.955 million tons, a year-on-year increase of 3.2%, accounting for 17.3% of the country. Compared with other provinces and regions, Guangdong and Zhejiang provinces have maintained a stable output of plastic products with their profound light industrial heritage, diversified industrial structure, perfect industrial supporting facilities and regional agglomeration development. In 2023, the top ten provinces and regions in the country contributed 78.8% of the national output, which is basically the same level as in 2022, and the advantage is further increasing compared with the output of other provinces and regions. See Table 4 for details.

 

2023 my country's regional plastic product output and national share

 

(VI) National plastic processing special equipment output

 

The production concentration of plastic processing special equipment in my country is relatively high, and the output of Zhejiang and Guangdong provinces has long accounted for 70% of the national output. In 2023, the output of special equipment for plastic processing in China decreased slightly by 0.74% year-on-year, with small fluctuations in output, and basically remained stable. See Table 5 for details.

 

Production of special equipment for plastic processing in various provinces in 2023

 

III. Analysis of the benefits of plastic processing industry in 2023

 

In 2023, under the background of the need to strengthen the endogenous driving force of the domestic economy and sluggish market demand, the main business income of enterprises above designated size in the national plastic products industry decreased by 1.7% year-on-year, and the operating costs with which it was linked also showed a year-on-year decline. However, thanks to the technological innovation and industrial upgrading of the plastics industry in production technology in recent years, the production efficiency per unit working time has been continuously improved, as well as better cost control and other factors, especially the relatively stable price of raw materials, which ensures the relative stability of the operating income profit margin. Since the beginning of 2023, with the gradual recovery of the industry, the cumulative year-on-year growth of the total profit, which has been in a state of negative growth, has also narrowed month by month, providing a favorable premise for turning from negative to positive next year. (For details of this section, please refer to the 2024 China Plastics Industry Yearbook or the January-February 2024 issue of the China Plastics Association Newsletter)

 

IV. Analysis of plastic product exports in 2023

 

According to data from the General Administration of Customs, the export value of plastic products in 2023 was US$100.81 billion, a year-on-year decrease of 3.9%, and the import value was US$17.19 billion, a year-on-year decrease of 12.3%, with a trade surplus of US$83.62 billion. The foreign trade operation of the plastic products industry is consistent with the stable trend of my country's overall foreign trade operation. In 2023, external demand continued to be sluggish, and the annual export growth rate of plastic products turned from positive to negative for the first time in six years. Even so, the total export value of plastic products in my country in 2023 still reached 93.5% of that in 2022, and as the competitiveness of industry enterprises in the international market continues to improve, the export value remains high. See Figure 3 for details.

 

Growth of my country's plastic product exports from 2000 to 2023

 

V. Existing major difficulties and problems in the industry

 

(I) Expectations for demand contraction weaken, and industry profits are compressed

 

Insufficient effective market demand has become a prominent contradiction in the current development of the plastic processing industry. Throughout 2023, the overall profitability of the industry still needs to be improved. The situation of "increasing revenue but not increasing profits" has become more and more obvious. The industry's profit has not improved for a long time, and the economic boost and consumption recovery have not met expectations. Objectively speaking, the plastic processing industry is still in a downturn cycle, and there has been no "retaliatory rebound" in downstream demand.

 

(II) Insufficient optimization of industrial structure and serious "involution" in the industry

 

At present, the industry's difficulties are mainly caused by the backward business philosophy of some enterprises, the low-end products are prone to vicious competition, and the enterprise transformation and management improvement are stagnant. In 2023, while the scale of the plastic processing industry continues to grow, the phenomenon of overcapacity at the low end, the majority of low value-added products, and excessive disorderly competition directly lead to the increasingly prominent problem of "involution" in the industry, threatening the healthy development of the industry and affecting the normal operation of high-quality enterprises. In this regard, it is urgent to further optimize the industrial structure and further strengthen the standardization of the current industry system.

 

(III) The ability of scientific and technological innovation is not strong, and the overall competitiveness of the industry is relatively weak

 

At present, some high-tech and high-value-added products in my country's plastic processing industry still need to rely on imports, and the domestic substitution capacity still needs to be improved. In addition, there are many small and medium-sized enterprises in the plastic processing industry, and enterprises have problems such as imperfect modern operation and management systems, low management efficiency, and insufficient integration of industry, academia and research. The entire industry is not strong in scientific and technological innovation, high-tech process research and development, and technology upgrades. The rate of product replacement is slow, and the industry's scientific and technological innovation and overall competitiveness are weak.

 

(IV) The international market continues to be sluggish, and the export situation is becoming more severe

 

At present, the foreign trade industry is facing unprecedented challenges due to the impact of factors such as the global economic downturn, the rise of trade protectionist policies, and the complex international geopolitics. my country's plastic product exports are also affected by the increasingly complex foreign trade environment and policy structure, and the situation faced by foreign trade enterprises is even more difficult. On the other hand, the foreign exchange rate has fluctuated greatly, and the pressure of RMB depreciation still exists, which has further pushed up the cost of overseas raw material procurement. In this regard, foreign trade enterprises in the plastic processing industry need to adjust their marketing strategies in a timely manner. In addition, enterprises that rely on overseas production capacity and have long-term demand for imports also urgently need to enhance their risk resistance.

 

VI. Industry Forward-looking Analysis and Development Suggestions

 

(I) Seize development opportunities and insist on stability and progress

 

In 2024, although the global inflation problem has been temporarily alleviated, the short-term and long-term factors that lead to the global economic downturn still exist, and it has become a general consensus that the global economic growth rate continues to slow down. Affected by this, my country's plastic processing industry will face more complex and severe market challenges. However, relying on the gradual recovery of my country's economy and the long-term positive fundamentals, the accumulation of domestic positive factors will provide strong support for the steady development of the industry, and the prospect of high-quality and sustainable development of the plastic processing industry remains unchanged. In this regard, plastic processing enterprises should strive to be practical, adhere to deepening supply-side structural reforms, always pay attention to demand-side management, strive to lead with innovation, and continuously enhance core competitiveness, especially in key technologies and core technologies. We must dare to tackle tough problems and explore, accelerate the development of core advantage products to high-end, and achieve stability and progress.

 

(II) Adhere to innovation-driven development, improve quality, reduce costs and increase efficiency

 

Implementing the innovation-driven development strategy is not only the foundation for consolidating and strengthening the country's real economy, but also the key to the development of major industries. Nowadays, it has become a consensus among industry enterprises to increase product research and development efforts and break through the market with innovative and differentiated new products. my country's plastic processing industry needs to further concentrate its inherent advantageous resources, accelerate the core technology breakthroughs, solve the "stuck neck" technical problems, and develop new materials to open up more market application scenarios and meet more diversified functional needs. In the face of the industry's "involution", adhering to improving quality, reducing costs and increasing efficiency will become an effective means. Industry enterprises need to strengthen quality management, technological innovation and talent training, continuously improve product quality, reduce production costs and improve production efficiency, so as to achieve sustainable development and long-term profitability.

 

(III) Practice green concepts and seize development opportunities

 

In 2023, driven by the "dual carbon" strategy, my country's new energy industry layout will be more extensive, and new opportunities will emerge like mushrooms after rain, especially new energy vehicles and smart home appliances. As an important auxiliary to major industries, the plastic processing industry also has a great role in promoting the further development of the new energy industry. In this regard, industry enterprises should seize development opportunities and provide key support in the grand process of achieving the "dual carbon" goal and promoting the green transformation of the whole society's industry. With the gradual implementation of my country's sustainable development strategy, the policy orientation under the environmental protection appeal will continue to promote the research and development of recyclable, easily recyclable and degradable alternative materials and products, thereby promoting the green and low-carbon development of the industry.

 

(IV) Strengthen international competitiveness and change marketing models

 

As a major producer of plastic products, my country's plastic products are not only complete in categories, but also have the dual advantages of price and quality, which also give China's plastic products strong export competitiveness and have been widely recognized in the international market. However, my country's plastic processing industry still needs to improve in terms of technological innovation, green environmental protection and sustainable development. To this end, industry enterprises need to continue to focus on cutting-edge fields such as new technologies and new materials, enhance international exchanges and cooperation, and strengthen their own product competitiveness and technological advantages. In addition, the innovation of marketing models is also crucial to further expand overseas markets. China has become a leader in global Internet technology innovation. Breaking out of the inherent operating model and relying on the Internet's novel and efficient communication methods, such as relying on cloud business platforms and short videos to promote brand image building, product promotion and marketing, etc., is worthy of further exploration and experimentation by China's plastic processing industry.

 

Conclusion

 

As one of the pillar industries of my country's light industry, the plastics processing industry has accounted for 1.3% of the total output value, total assets, employees, and export volume of light industry.