Paper packaging is a common product in daily life. The outstanding features of this type of packaging are cost-effectiveness, easy printing, and environmental friendliness. They are used in various fields, from medical, food to cosmetics, gifts, household items, toys, and advertising. Products in the paper packaging group often include paper bags, paper boxes, paper shelves, clothing tags, and hangers.
Global Paper Packaging Market
The global paper packaging market is estimated to reach USD357.20 billion in 2023 and is expected to reach USD445.99 billion in 2028, growing at a CAGR of 4.54% during the period 2023-2028. According to Vietdata, up to 67% of customers worldwide believe that it is important for the items they purchase to have recyclable packaging, with 54% stating that it is a consideration when making a purchase. Additionally, 83% of young consumers are willing to spend more on sustainably packaged products. In the United States, the food and beverage sector accounts for nearly 50% of the packaging market, with over 30% of Americans ordering food twice a week, with an expected 3% increase in the coming years.
Vietnam's Paper Packaging Market
Vietnam is proud to be one of the top 3 e-commerce markets in Southeast Asia, both in market size and growth rate. This is a key factor supporting paper packaging in Vietnam. Vietdata's statistics show that the number of online shoppers is increasing by about 4 million per year. The most purchased consumer goods online include clothing, footwear, cosmetics, household items, most of which are packaged in carton boxes for transportation. In 2023, e-commerce is expected to increase by 25% compared to the previous year. Along with the "green" e-commerce goal, the paper packaging market will benefit greatly. In addition, the F&B industry also contributes significantly to the paper packaging output. F&B revenue in Vietnam is forecasted to grow by 18% in 2023, ranking 3rd in the Southeast Asia region. By 2026, it will reach a value of nearly VND1,000,000 billion. Vietdata estimates that the scale of Vietnam's paper packaging market is expected to increase from 2.37 billion USD in 2023 to 3.77 billion USD in 2028, with a CAGR of 9.73% during the period 2023-2028. Meanwhile, the plastic packaging sector only reaches 8.39%.
Currently, Vietnam has about 14,000 packaging manufacturing enterprises, including over 4,000 paper packaging businesses.
Tetra Pak
Tetra Pak Vietnam, a subsidiary of the Tetra Pak Group founded in 2003, operates as part of a global network with activities in over 160 countries. The company's main focus is on producing carton packaging for food and beverages such as water, milk, fruit juice, and other liquid foods.
In terms of revenue, Tetra Pak Vietnam leads the market share in paper packaging in Vietnam, with a consistent increase reaching around 6.5 trillion VND from 2020 to 2022. Despite this, the post-tax profits were relatively modest, at around 40 billion VND in 2020, increasing by nearly 90% in 2021 and then decreasing by over 15% in 2022.
Dohaco
Established in 1994, specializes in manufacturing and trading industrial paper and carton packaging. Its main products include various types of industrial packaging paper, 3-ply, 5-ply, and 7-ply carton packaging in different quantities and sizes as per customer requirements.
Dohaco saw a nearly 50% increase in revenue in 2021, followed by a slight decrease in 2022 to around 4 trillion VND. Although its gross revenue is not the highest, its post-tax profits lead among the top 10 enterprises, reaching approximately 400 billion VND in 2020, increasing by over 20% in 2021, and decreasing by nearly 20% in the following year.
Viet Hung
Viet Hung Packaging Company Limited was established in 2003, with over 10 years in the packaging industry. Viet Hung has now established partnerships with major companies such as Samsung Group, Canon Vietnam, and Panasonic. The Viet Hung carton packaging factory is built on a 6-hectare area, located in a convenient transportation area: 20 kilometers from the center of Hanoi and right on National Highway 5. The main product that the company provides to the market is various types of carton boxes.
The Viet Hung brand has recorded stable revenue growth from 2020 to 2022, reaching around 2,500 billion VND. The after-tax profit showed similarity in 2020 and 2021, at about 90 billion VND, with a significant increase in 2022 to over 150%.
Goldsun
Under Goldsun Printing and Packaging Joint Stock Company, with over 20 years of experience in the printing and design of paper packaging. It has 3 main production plants, all located in the northern region of Vietnam.
In 2020, the company recorded a net revenue of around 1,400 billion VND, nearly 50% growth in 2021, and continued to slightly increase in 2022. The after-tax profit showed outstanding growth in 2022, nearly 700%, compared to nearly 10 billion VND before.
Sovi
In 1968, Bien Hoa Packaging Joint Stock Company, formerly known as Bien Hoa Packaging Factory, was the first packaging production workshop established in Vietnam. In 2012, the company's shares were listed on HOSE. The company's main activities include production and business of paper, covers, paper and board packaging, and trading of packaging and paper production materials.The company currently has 4 affiliated factories, including 2 carton packaging factories with a total designed capacity of up to 75,000 tons/year, 1 offset printing packaging factory with a capacity of 5,000-6,000 tons/year, and 1 paper cutting factory with a capacity of 3,000 tons/year.
The net revenue for 3 consecutive years fluctuated around 1,800 billion VND. In terms of after-tax profit, there was some variation. Specifically, it reached around 150 billion VND in 2020, decreased by nearly 30% in 2021, and increased by over 25% in 2022.
Print App
The Packaging and Agricultural Printing Joint Stock Company was established in 1963 and has undergone 60 years of development. It mainly focuses on printing on paper packaging produced by the company.
The company's net revenue in 2020 was about 1,200 billion, increasing by nearly 30% in 2021, and is expected to increase by over 10% in 2022. The post-tax profit has been maintained, reaching approximately 65 billion in 2020, increasing by nearly 6% in 2021, and expected to increase by over 15% in 2022.
Liksin
Established in 1978, Liksin is a member of the Industrial - Printing - Packaging Corporation - Limited Liability Company. The main paper packaging product of the brand is the Hologram box packaging.
The net revenue increased by over 15% in 2021, reaching about 1,600 billion dong, and decreased slightly in the following year. The company made a profit of over 100 billion in 2020, increased in 2021 and 2022, with a similar figure of about 20%.
Phuc Hao
Phuc Hao Trading and Manufacturing Limited Company was established in 1998. The company is one of the leading enterprises in the instant noodle production industry. Its products are available nationwide, from Thanh Hoa to Ca Mau. To meet the company's and the market's demand for carton boxes, the company has invested in building a carton production workshop to supply all sectors in the market.
The brand has seen a gradual increase in net revenue over the years, reaching approximately 700 billion VND in 2020, increasing by over 25% in 2021, and by more than 20% in 2022. The after-tax profit remained around 7 billion VND for the first 2 years and increased by over 20% in 2022.
Dopack
Established in 1995, Dong A Joint Stock Company is a member unit of Khanh Viet Corporation (KHATOCO), specializing in producing and supplying various types of carton packaging, paper boxes, labels, and printed materials with a production capacity of over 35,000 tons per year.
The net revenue has been maintained over the years and experienced significant growth in 2022. Specifically, the first 2 years fluctuated around 350 billion VND, and by 2022, it increased by over 50%. The after-tax profit showed similar fluctuations, hovering around 20 billion VND in 2020-2021 and soaring by nearly 350% in 2022.
Ngoc Diep
Starting in the office furniture business in 1996, Ngoc Diep gradually expanded into carton packaging (1998), doors (2010), and aluminum (2016). In 2017, Ngoc Diep restructured into a conglomerate model, with Ngoc Diep Group Joint Stock Company as the parent company and several subsidiary companies. Ngoc Diep Joint Stock Company is located in the northern region and supplies 200 million products to the market annually.
The brand's net revenue has been increasing over the years, fluctuating around 350 billion VND. In contrast to the increasing trend in net revenue, the after-tax profit recorded a decrease. Specifically, it reached around 7 billion VND in 2020, decreased by nearly 20% in 2021, and further decreased by over 30% in 2022.
Alongside the convenience from sectors such as e-commerce, food and beverage that help drive the development of the paper packaging industry, free trade agreements also create opportunities for Vietnam's paper packaging exports to preferential tax markets. However, Vietnamese manufacturing enterprises still face certain difficulties. Vietnam does not have enough forest resources to meet the country's paper production needs. Most of the raw materials for paper production in Vietnam are imported, increasing costs and affecting the country's competitiveness in the global market. The number of new businesses entering the industry is high, however, there is not much differentiation in products and the product life cycle is short. Environmental pollution is a contentious issue in many countries, including Vietnam. The paper packaging industry, which inherently uses a lot of energy, raw materials, and chemicals with the potential to emit hazardous pollutants, is also one of the manufacturing sectors that seriously impacts the environment.
Source: 2022 Market Report on Vietnam's Paper Packaging Industry by Vietdata
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