Shenzhen Huazhe Jingwei Biotechnology Co., Ltd. (“ Huazhe Jingwei”) recently has announced the completion of hundred millions of CNY in Series A funding.
Huazhe Jingwei is a leading bio-based Eco-Friendly material enterprise in China, grasping the key technologies of modification, production and equipment manufacturing of bio-based materials. It is dedicated to solving the pollution problem of disposable tableware and providing efficient and high-quality environmental food packaging solutions for catering enterprises.
According to Huazhe Jingwei, over 300 SKUs have been developed. The product line covers takeaway lunch boxes, tableware, straws, shopping bags, sanitation Bin bags, express packaging bags, agricultural mulch, and other biodegradable products as well as bio based composite modified materials. Its products have entered Europe, America, Russia, Canada, Japan, and other countries. After recycling the biodegradable materials, it decomposes and composts under specific conditions to form a cycle.
According to Mordor Intelligence, the global market size of biodegradable packaging was USD 81.7 billion in 2018, and is expected to reach USD 118.85 billion by 2026, growing at a CAGR of 6.35%. This growth is driven by the increasing importance of protecting the environment, the government's ban on plastics, and the continuous increase in awareness of consumers and businesses.
The market for biodegradable packaging is highly fragmented. Meanwhile, barriers to entry in the market are low, leading to the emergence of smaller participants, further intensifying competition. Major players in the market are Mondi Group, Elevate Packaging, Sealed Air Corporation, Amcor PLC, and Tetra Pak International S.A. etc.
Zhe An, founder of Huazhe Jingwei, stated: "The advantage of biodegradable materials is replacing petroleum and reducing the probability of environmental pollution. The next three years will be devoted to building a management and service system, to achieve the next phase of rising.”
This round of financing for Huazhe Jingwei will mainly be used for research and development iterations, capacity expansion, and market promotion. It was invested by CGN Private Equity Fund Management (中广核产业基金), Harvest Fund Management (嘉实投资-嘉实基金) and Nesthill Capital (巢山资本).