Demand for packaging equipment in China is projected to climb 8.0% annually through 2011 to RMB51.5 billion, according to a research report, "Packaging Machinery Market in China", available on web market research engine Reportlinker.com.
 
 Product sales will be driven by growth in manufacturing, packaging materials use and associated fixed investment activity as Chinese industrialization efforts continue and income levels rise. Packaging machinery shipments by Chinese producers are forecast to expand 9.7% per year to RMB48.4 billion in 2011, outperforming demand. As a result, China's overall trade deficit in packaging machinery will narrow, although the country will continue to rely on foreign sources of supply for many sophisticated and specialized equipment types.
 
 Food industry to retain dominance
 
 The food industry is the largest market for packaging machinery in China. Food-related applications are expected to strengthen their already dominant market position as changes in lifestyle trends and types of employment, increasing urbanization and growing personal income levels fuel consumption of convenience and other packaged food products. Demand for equipment used to package medical, pharmaceutical and personal care products is also projected to rise at an above-average rate through 2011. Sales will be driven by substantial growth in the number of people aged 65 and older, an age group requiring more medical care, and supported by rising personal incomes throughout the nation, making drugs, cosmetics and toiletries more affordable.
 
 Labeling, coding equipment to grow the fastest
 
 Demand for labeling and coding equipment will outpace sales of other types of packaging machinery, spurred by the growing need for shippers to accurately identify and track items, as well as increasingly stringent safety and quality requirements for packaged products. In addition, increased use of radio frequency identification tags will bolster demand for associated labeling equipment. Demand for filling and form/fill/seal equipment will also climb at an above-average rate through 2011, maintaining its position as the most widely used type of packaging machinery in China.
 
 Central-East, Central-South regions pose best prospects
 
 Together, the Central-East and Central-South regions account for more than 70% of the country's total manufacturing production. Thus, these areas will continue to provide packaging machinery suppliers with the greatest sales opportunities. The Northeast, Northwest and Southwest regions, although underdeveloped, are benefiting from the government's "Go West" and "Reviving the Northeast" campaigns.