As of the end of 2023, China is home to over 4,000 professional plastic weaving production enterprises, employing approximately 400,000 workers, with an annual production capacity of around 28 million tons.
Industry Downturn and Challenges in 2023
In 2023, the production of plastic woven products, including plastic wire, rope, and woven goods, reached approximately 14.35 million tons from enterprises above designated size, reflecting a -1.3% year-on-year decrease. The total output value of these products was around 190.38 billion yuan, showing a -0.5% decrease from the previous year. The overall production of plastic woven products across all sectors totalled about 15.38 million tons, with a total output value of 192.91 billion yuan, marking a -5.8% decrease in volume and a -5.2% drop in value compared to 2022.
This downturn in the plastic weaving industry is attributed to multiple factors, including the global economic slowdown, trade protectionism, and international geopolitical tensions. These elements have resulted in suppressed market demand, insufficient orders, widespread payment delays, increased labour costs, and rising energy prices—all negatively impacting production and operational efficiency.
Profit Decline and Overcapacity Issues
Despite a 2.6% increase in production by plastic weaving enterprises in 2023, their sales revenue decreased by 6.7%, and profits dropped by 18.42%. While companies continue to invest in advanced equipment and expand production capacity, they face significant challenges such as overcapacity in low-end production, high inventory levels, and disorderly competition. This “internal competition” has led to a sharp decline in profits, posing a threat to the stable operation of quality enterprises and the overall health of the industry.
As a result, there is an urgent need to reduce production capacity, optimize the industry structure, and standardize competition to ensure sustainable growth and the healthy development of the plastic weaving industry in China.
2023 Industry Performance Overview:
| Year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 |
|---|---|---|---|---|---|---|
| Industry Production (10,000 tons) | 1819 | 1793.5 | 1693.1 | 1713.4 | 1632.9 | 1538.2 |
| Growth Rate | -2.3% | -1.4% | -5.6% | 1.2% | -4.7% | -5.8% |
| Production of Enterprises Over 20 Million Revenue (10,000 tons) | 1499.8 | 1490.8 | 1440.1 | 1475.9 | 1453.9 | 1435 |
| Growth Rate | 0.1% | -0.6% | -3.4% | 2.5% | -1.5% | -1.3% |
In conclusion, 2023 represents a challenging year for the plastic weaving industry in China. The ongoing downturn underscores the need for effective measures to address overcapacity, inventory build-up, and competition issues to drive future growth and industry stability.