Shanghai reusable packaging firm secures funds for global expansion

Horen Group, a Shanghai-based specialist in intelligent reusable packaging, obtained 130 million yuan ($18.12 million) in a Series F funding round on Monday to support its global expansion.

The investment, led by Timesbole's Xianju New Energy Industry Fund, will also be channeled towards enhancing its technology and business model.

The funding arrives as global supply chains face rising pressure to adopt sustainable practices, spurred by initiatives like the European Union's Carbon Border Adjustment Mechanism (CBAM) and heightened ESG demands from multinational corporations. This shift presents significant opportunities for Chinese companies focusing on reusable packaging solutions to expand their global footprint.

"Thanks to the in-depth promotion of the global localization strategy and the continuous growth of the smart reusable packaging market, the company has achieved leapfrog development in the past three years," said Liao Qingxin, founder and CEO of Horen Group.

The company has established a solid international presence through its "local for local" (L4L) strategy, which focuses on building local manufacturing, marketing and service networks in overseas markets.

Horen's service network currently spans developed regions including the EU, the United Kingdom, the United States, Japan, and South Korea, where the group serves as a green supply chain partner for brands such as Kewpie, Heinz and Estee Lauder. Overseas revenue is reportedly nearing 50 percent of the company's total income.

Within China, Horen Group has established partnerships with industry leaders, including COFCO Group, Bosch, Siemens, Haier, Wanhua Chemical and Haitian Flavoring.

Jiang Guoyun, chairman of Timesbole, said he was optimistic about Horen Group's ability to convert established Chinese reusable technology into international standards.

"From a single packaging manufacturer to an industrial platform ecosystem builder, Horen Group has proven that true industrial upgrading lies not in replacing old capacity, but in reconstructing the industry's value network with the penetrating power of the entire chain technology," he added.

According to Grand View Research, the global reusable packaging market is projected to expand from the 2024 figure of $244.72 billion to $351.69 billion by 2030.

The EU's Packaging and Packaging Waste Regulation (PPWR), which mandates full recyclability for all packaging by 2030, is expected to further accelerate this growth.

Luo Bin contributed to this story.