09/14/2014 Plenty of room to grow on the Chinese packaging market In China, during the last three decades, the urban population has increased by 500 million people and more than half of the growing population lives in cities. By 2030 about 70% of the Chinese population is expected to live in cities. This illustrates China’s exceptional growth. For several years the GDP growth has been about ten per cent and the market for packaging grows even faster. That is why China is important to Renewable Packaging’s growth strategy. “In China the packaging market is scattered and still quite immature. Stora Enso is among the 20-30 largest companies but no one is really big. The top-ten companies only represent about four percent of the market. There is plenty of room to grow,” says Ligang Ma, Marketing Director Stora Enso China. China used to be attractive to international companies due to competitive production costs. Now it is rather the growing middle class and its purchasing power that is generating interest. Renewable and environmentally friendly packaging material is well positioned for the future. Currently the competition from plastic is strong and the environmental concern is not always a major concern among the general public, but there are strong political signals in China to promote a more sustainable environmentally friendly way of living. Stora Enso’s good sustainability reputation is also helping when recruiting new staff. Stora Enso grows quite rapidly in China. In the last year alone the number of staff increased with several hundred people within Stora Enso Inpac.