Profitability Trends in the Packaging and Printing Industry

Introduction

The global packaging and printing industry—valued at over one trillion yuan—continues to expand alongside growing demand for sustainable, high-quality materials. Among its core sub-sectors—corrugated cartons, folding color boxes, flexible plastic packaging, and self-adhesive labels—profitability varies widely due to differences in market positioning, technology investment, and cost structure.

This analysis reviews financial results from 2024 and the first half of 2025 across four representative listed mid-sized companies, focusing on gross profit margin, combined with revenue growth and capacity utilization, to provide insight for industry practitioners and investors.

As a global supplier of paperboard and specialty packaging materials, China Paper continuously monitors downstream market trends to better support converters, printers, and packaging manufacturers worldwide.

Corrugated Cartons

Company A, a leading producer of corrugated cartons, reported a 16.2% gross profit margin in H1 2025, slightly higher than in 2024.

This segment is scale-driven, characterized by low entry barriers, fierce competition, and high sensitivity to base paper price fluctuations.

While Company A maintains profitability through stable partnerships with major home appliance and logistics clients, most carton enterprises still face long accounts receivable cycles and pressure on cash flow.

Folding Color Boxes

Company B, specializing in folding cartons, achieved a 25.1% margin during the same period.

Serving high-end liquor and consumer electronics brands, it benefits from customers who prioritize packaging quality over price.

This is a design-intensive segment, where customization and frequent prototyping demand continuous R&D.

Company B’s R&D investment—3.5% of revenue, above the industry average—**strengthens its competitive edge.

Flexible Plastic Packaging

Company C’s gross margin declined by 0.8 percentage points to 18.9% in H1 2025.

Fluctuating raw material prices and “plastic restriction” policies have compelled manufacturers to invest in eco-friendly and biodegradable materials, temporarily increasing costs.

Although Company C has begun developing sustainable packaging solutions, these transformation investments have restrained short-term profitability.

Self-Adhesive Labels

Company D leads with a 29.3% gross margin, the highest among the four sectors.

The label market features small-batch production, high variety, and strong resilience across economic cycles.

Digital printing technologies allow label manufacturers to shorten delivery times and enhance customer loyalty, ensuring steady profit performance even in a slowing economy.

Conclusion

For investors and industry professionals:

Self-adhesive labels and high-end folding cartons offer strong margins but require advanced technology and design capability.

Corrugated cartons provide steady returns for companies with scale and efficient cost control.

Flexible packaging is under short-term pressure but remains a key area for innovation in sustainable materials.

As green policies and digital transformation reshape the global packaging industry, only companies that innovate and adapt will sustain long-term growth.

In this evolving landscape, China Paper plays a vital role by providing high-quality, eco-friendly paperboard and raw materials that empower manufacturers to meet future market demands.