Market Trends of australia adhesives Industry
Advancement in technology of plastic recyclability is likely to play a vital role to the packaging industry
- Packaging is one of the fast-growing industries in terms of design and technology for protecting and enhancing products. The packaging industry in Australia is majorly driven by the rapid growth of the food and beverages industry in recent years. The agri-food industry is the most promising sector in Australia. In today's competitive market of FMCG, it has become inevitable for companies to use attractive packaging and bring innovation to their packaging to stand out from their competitors and maintain their brand image in the market. This will likely encourage the use of packaging adhesives in the market.
- Due to the COVID-19 pandemic, the country-wide lockdowns and temporary shutdown of manufacturing facilities caused several issues, including supply chain disruptions and imports and exports trade. As a result, the country's packaging production declined by 6% in 2020 compared to the previous year, significantly affecting the market. Packaging production is majorly driven by plastic in the country, accounting for around 80% of the packaging produced, at 45.5 million tons, in 2021. With the advancement of plastic recyclability, the plastic segment is likely to maintain its CAGR of around 3.29% during the projected period.
- The growth of the packaging industry in Australia is significantly concerned due to the growing demand for fresh food domestically. Furthermore, the growing interest in public health issues during the post-pandemic period, along with the emerging e-commerce activities across the nation, is likely to continue the growth of the food processing industry, which will further thrive the packaging demand in the upcoming years.
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Infrastructure segment is likely to dominate the construction industry
- The Australian construction industry is projected to register a CAGR of about 3.98% during the forecast period from 2022 to 2028. The Australian building and construction outlook is significantly brighter than projected, yet, the recovery remains uneven as the pandemic continues to weigh on particular industry sectors and areas. Some areas of building and construction had significant growth in 2021, while others have seen recession and depression. Australian construction adhesives and sealants are projected to register a CAGR of about 3.83% in terms of volume and 5.77% in terms of value during the forecast period (2022 - 2028).
- Although Australian residential construction showed degrowth before the COVID-19 pandemic, the industry was largely focused on the repairs and renovations side, specifically during the years 2018-19. The industry has spent about USD 2.1 billion. Moreover, the government has also introduced the "HomeBuilder" scheme with an investment of AUD 680 million in the wake of the COVID-19 pandemic; as a result of this scheme, the renovation rate had been increased by 14% in 2021 in comparison to that of 2020. Moreover, the non-residential sector and engineering constructions are enjoying stable growth due to large-scale construction work being done by the Australian government in the eastern states.
- Furthermore, the infrastructure plan, which may invest USD 100 billion over the next ten years from 2021, is projected to fuel the demand for adhesives and sealants in the country during the forecast period. According to the industry and skill committee in Australia, the construction sector is expected to grow by more than 2.4% in the next five years from 2021. These factors tend to increase the demand for adhesives and sealants in the country.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Growing demand for helicopters and lightweight aircraft is likely to continue the growth of the industry
- Over 50% of footwear demand in Australia depends on imports
- Import dependency will likely suppress the industry size in Australia
- Emergence of e-commerce industry will propel the industry growth
