China is aiming to be the biggest packaging producer in the world by 2012

The report, Paper and Packaging Sector M&A Update, says that China intends to increase their packaging market share “aggressively,” over the next year.

“Their stated aim is to become the world’s largest packaging producers by the end of 2012, which will further intensify competition and will alter the global market dynamic,” said the report.

The Chinese packaging market, which is the second largest after the US, had a gross industrial output of $183.9bn in 2010 according to the Chinese Packaging Federation.

Huge growth in the Chinese packaging sector has been partly attributed to the packaged food industry which has seen up to 20% growth per annum in recent years.

The research, which was produced by Catalysts Corporate Finance, also states that foreign packaging investment has been made in Turkey and BRIC (Brazil, Russia, India and China) nations – something they expect will continue.