Key development milestones of Tetra Pak in different stages
Key development milestones of Tetra Pak in different stages: • Product line expansion and technological accumulation stage1960s - 1980s): With success in the Nordic market, Tetra Pak began to emphasize technological innovation and quality control, continuously in R&D efforts, with technical personnel accounting for as high as 70% of the workforce, resulting in the accumulation of over 5,00 patents. During this period, Tetra Pak developed various shapes, sizes, and opening designs for its packaging to meet diverse market demands. The product range gradually expanded more liquid food categories beyond milk, such as juices and beverages. The business scope also expanded from the Nordic region to other parts of Europe, gradually establishing itself as leading player in the liquid food packaging industry. Meanwhile, Tetra Pak kept its bad package rate below one in ten thousand, far lower than the average level of enterprises, and further solidified its market position with high-quality packaging products. • Market entry stage in China (1980s - 199s): In the 1980s, Tetra Pak began exploring the Chinese market by licensing its technology to state-owned paper mills, successfully establishing a presence. At that time, milk consumption was not widespread in China, and the dairy industry faced many difficulties, such as storage issues that limited milk's shelf life hindered its distribution to wider areas. Most dairy brands were confined to regional markets. However, Tetra Pak's packaging characteristics of being "sterile, sealed moisture-proof, and UV-resistant" not only made it lightweight and easy to carry but also eliminated the costs of glass bottle recovery and washing. It also reduced losses glass bottle breakage during transportation and significantly increased space utilization, thereby extending the shelf life of milk at room temperature. Combined with the high efficiency of Tetra Pak automatic filling machines, this was highly attractive to Chinese dairy enterprises. • Market layout and expansion stage (1990s - early 21st century In the 1990s, Tetra Pak increased its investment in the Chinese market, collaborating with dairy enterprises through a "half-sell-half-g" model. This involved selling filling machines at a loss-making low price to dairy factories while requiring them to purchase Tetra Pak's packaging materials. Some contracts even exclusivity clauses. Through this cooperation model, Tetra Pak quickly dominated the Chinese packaging market, selling more than 1,000 aseptic packaging lines. This helped companies like Mengniu and Yili quickly rise and evolve from regional to national dairy giants, while also continuously expanding its own market share in, once monopolizing 95% of the milk packaging market. Globally, Tetra Pak's products and businesses continued to expand, reaching 10 countries by the 1990s, producing 60 billion paper packages annually, with annual sales reaching 5 billion US dollars, making it the's largest paper packaging company.
• Continuous Innovation and Consolidation Stage (Early 21st Century - Present): Entering the 21st century Tetra Pak has continued to innovate in packaging technology. In recent years, Tetra Pak has pioneered the application of electron beam sterilization technology in the packaging field successfully breaking the physical limit of paper packaging filling speed. This advancement allows for a filling speed of up to 40,000 packages per hour or11 packages per second, setting a global record. This ultra-high capacity significantly enhances the production efficiency of its newly launched E3 ultra-high-speed filler. Compared the Tetra Pak® A3 high-speed filler, it offers higher output per unit area, with an overall annual production increase of 60%, while also operating costs by up to 10%. Additionally, it supports package type and capacity conversions, adapting to different production requirements and helping companies respond flexibly to changing demands and capture diverse market opportunities. Furthermore, Tetra Pak is actively engaged in environmental protection efforts. Approximately 70% of its paper-based packaging is made renewable materials, and the company is striving to reach 100% through collaboration with BillerudKorsnäs. Tetra Pak China has already 100% use of certified green electricity, making significant progress in reducing emissions in its own operations and along its value chain. By practicing low-carbon and minimizing environmental impact, Tetra Pak has further solidified its leading position in the global food packaging industry.
