[News] How to make sugarcane "eaten up and squeezed out": bagasse pulp turns into molded fiber food packaging, with short supply in the market.

Release time:

Aug 08,2022

to make sugarcane "eaten up and squeezed out"

"In the past ten years, there has been little attention paid to the molded fiber package industry, but now with the rising conciseness upon environmental protection and the establishment of dual carbon goals, plastic reduction and plastic ban have become a very clear trend. Under this circumstance, the degradable lunch boxes made of bagasse pulp have experienced explosive growth." shared by Mr. Teng, chairman of a molded fiber tableware supplier in Guangxi, in an interview with The Paper (www.thepaper.cn), explaining somehow the process of sugarcane’s being "eaten up and squeezed out".

Teng also shared that Guangxi is the largest sugar production area in China, with extremely abundant sugarcane resources, and the output of sugarcane sugar accounts for more than 60% of the whole country. Bagasse, the by-product of sugarcane production, can be made into bagasse pulp through pulp mills, and then the bagasse pulp is used to make molded fiber food packaging, so as to realize the full-link cycle development of sugarcane.

According to the published data from a listed company, it is seen that this company’s mother group has a total of 8 sugar-making enterprises, with an annual output of 650,000 tons of machine-made sugar and nearly 400,000 tons of bagasse resources. In addition, there are special pulping enterprises under the group, providing sufficient raw material resources for the development of its molded fiber food packaging business.

At present, the annual sales of this listed company are about 120 million yuan, and the export value accounts for up to 99% of the total sales. The customers mainly come from Europe, America, Japan, South Korea, Australia and other countries.

The absolute proportion of exports is the normal state of current molded fiber food packaging enterprises. Teng explained that, on the one hand, foreign environmental protection concepts were formed earlier, and molded fiber food packaging is more likely to meet the needs of Western food plates, so there has been large demand from the international market. Affected by the relevant regulations on export tax rebates for domestic molded fiber products, the economic benefits of the molded fiber export business are higher. In this regard, the surging journalists inquired about the China Export Tax Refund Consulting Network and learned that the value-added tax rebate rate for molded fiber-related products with commodity code 48236990 is 13%.

However, with the adjustment of domestic environmental protection policies, various provinces and autonomous regions have also made it clear that they will reduce plastics, limit plastics or even ban plastics, and the domestic market may usher in the development of degradable materials.

Judging from the current status of the packaging market, the application status of molded fiber packages in e-commerce, takeaway and other fields, and the policy trend, by 2025, the penetration rate of molded fiber in the packaging market will reach 30%, and the market capacity will reach 238.8 billion yuan.

From a technical point of view, Teng said that the technical barriers in the molded fiber food packaging industry are not strong, and the entry threshold is also low. In such a competitive environment, the listed company above has chosen a customized development path with a higher premium. In addition, Teng said that in the tableware application market, the cost of molded fiber products and plastic products is very close. At present, according to different materials and production requirements, the price of plastic lunch boxes is in the range of 16,000~23,000 yuan/ton, and the price of molded fiber tableware is in the range of 17,000~24,000 yuan/ton.

In addition to applications in the food packaging field, molded fiber packages also have great prospects in industrial packaging, including shock-proof packaging materials such as the phone trays in home appliance packaging boxes. In the future, with the further adjustment of domestic environmental protection policies, plastic packages will be gradually replaced by degradable one, leaving great chances for the molded fiber package industry to usher in this new trend.

Reports by The Paper, Translated and Edited by Minjie

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