A Reflection of Industry Challenges in Cosmetics Packaging
2025-01-26
Recently, Wanchen Plastic Products (Shanghai) Co., Ltd. (Wanchen Plastic), a cosmetic packaging supplier with a history of over thirty years, announced that it will officially cease operations on December 1st.
In the context of the sluggish cosmetics industry, the bankruptcy wave among upstream packaging suppliers is an inevitable result of low-price competition and overcapacity. In terms of product usage, Wanchen Plastic's cooperative clients cover skincare, makeup, personal care, and perfumes.
Regarding client types, Wanchen Plastic's clients range from high-end to mid-to-low-end, both domestic and international. In terms of product types, Wanchen Plastic mainly engages in the soft tube business.
Although soft tubes are the second most widely used category in the entire cosmetics packaging industry after plastic bottles, they are one of the least profitable sub-sectors in the cosmetics packaging field.
Moreover, unlike other packaging suppliers that are involved in packaging products for other industries, Wanchen Plastic is only involved in packaging for the cosmetics industry, making it the "purest" cosmetics packaging supplier.
This has also laid the groundwork for its broken capital chain and eventual bankruptcy.
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