Since December 2020, Chinese paper manufacturers have reported higher prices for paper products. The increase in price is due to the rising cost of raw materials caused by the pandemic and strict environmental protection rules.
So how will higher paper prices impact your packaging? Let’s find out!
reasons for the soaring paper prices
Industry experts acknowledge that there are three main reasons for the rise in paper prices.
Firstly, from January 2021, the Chinese Ministry of Ecology and Environment has banned the import of solid waste, in particular, waste paper. In turn, the domestic paper market has become highly concentrated, which gives leading paper enterprises more bargaining power.
Secondly, with the latest version of the Chinese plastic restriction order in place, more people are switching to paper packaging. Consequently, the demand for for paper-based food packaging and packing bags has increased significantly!
So, considering both of these reasons, there’s a great demand for paper, but only a limited amount of supply available.
Unfortunately, that’s not all! To even think about increasing the supply of paper, we need to acknowledge that the price of pulp itself has soared!
Given that China is the world’s largest pulp importer, COVID-19 has made it harder to access pulp. As a result, many enterprises in the industry are raising their prices as well.
For example, Gold East Paper, a company based in East China’s Jiangsu Province that produces coated paper has raised its prices by 300 yuan per tonne! A sales person from the company stated that the change in prices is mainly the result of expensive raw materials.
In fact, a large amount raw materials that his company uses for paper production are imported from overseas. “The logistics cost of imported raw materials have increased due to the global spread of coronavirus, which also leads to the rise of prices for our products,” he said.
With this in mind, these three factors have been the main reasons behind the soaring paper prices!
Impact on Packaging
So how will this affect your packaging?
For one, a majority of packaging companies such as ourself work with Chinese suppliers and factories. So with the increase in paper prices and cost of raw materials, you can expect paper bags and paper boxes to be slightly more expensive as well.
“But what if I buy my packaging from local suppliers? Will my packaging still be affected?”
Yes. With a greater demand for paper-based packaging, if businesses find imported packaging to be very expensive, they’ll want to make the switch to domestic companies. This would cause a shortage of paper-based packaging and domestic companies would be forced to increase their prices as well.
“Is there anything I can do to avoid paying extra for paper-based packaging?” Yes, absolutely!
alternatives to paper-based packaging
If you don’t want to pay extra for paper-based packaging, consider opting for some reusable bags!
For those who may not know, reusable bags were actually the founding product of our company. So over the past 15 years, we’ve worked really hard to create custom high-quality and affordable Non-Woven polypropylene (Non-woven PP) reusable bags!
Non-Woven PP is a thermoplastic polymer. This means that you can melt it down to make it into something else.
The material we use to create our reusable bags is a strong recycled plastic, ensuring that they are an eco-friendly option and durable option. This way, you and your customers will be able to help eliminate the use of single-use plastics in the environment!
Reusable bags are also great for long-lasting publicity! With our reusable bags, there is no limit on printing capabilities, and many accessory options to consider. This includes:
- Matte and glossy lamination
- Full colour print
- Contrasting piping colour
- Heat pressed dots
We also offer heat sealed reusable bags! They’re very cost-effective, durable and actually cost around the same price as Kraft paper bags.
The main difference between a heat sealed bag and a non-woven PP one is that heat sealed bags are easier to clean and offer a unique look. Heat sealed bags also require less material to produce because they aren’t stitched.
As you can see, the picture on the left is a heat sealed bag and offers a much more defined shape than the non-woven PP bag on the right!
In addition to reusable bags, you may also consider specialty bags made from hemp, cotton, canvas, or Kraft-woven materials!
Interested in finding out more? Contact us today!
In the meantime, check out our blog post on the 3 essential characteristics of a reusable bag design!