According to SMM research statistics, China's double-zero foil production in 2023 was 631,000 tons, a decrease of approximately 74,000 tons compared with 2022. Production is reduced by more than 200,000 tons compared with 2021. Production has declined for two consecutive years.

There are about 15-20 companies in the country with mass production capabilities. In 2023, there were only 4 companies with double-zero foil production accounting for more than 10% of the country's production, and the industry's production capacity concentration is low.

The biggest use of double-zero aluminum foil is food packaging. Its demand changes are highly related to the consumption of milk, dairy products and other foods. In 2023, the global economy was in a downturn, and residents' consumption power and willingness to consume were extremely sluggish. This is the biggest reason for the shortage of orders and negative output growth of double-zero foil companies. The first quarter of 2024 has ended. Aluminum foil companies generally report that although demand has improved compared with the end of 2023, the increase in demand is not obvious. The overall market demand is still relatively bleak, and pessimism is extremely strong.

However, there are still some products that show good development prospects. For example, high-precision ultra-thin double-zero aluminum foil, that is, aluminum foil with a thickness of ≤0.007mm, is difficult to produce because of its low pinhole degree and thin thickness. The national output in 2023 was only 50,000-60,000 tons, with relatively high profitability and good market prospects.

As hundreds of thousands of tons of new aluminum foil production capacity gradually comes into being in the future, the overall supply and demand relationship in the aluminum foil market is not optimistic. It is worthy of most aluminum foil companies to strive to improve product quality and actively develop high-precision, ultra-thin double-zero aluminum foil and other high-value-added products.