Australia Paper and Paperboard Packaging Market Size

Australia Paper & Paperboard Packaging Market Analysis

The Australian paper and paperboard packaging market is expected to register a CAGR of 4.23% over the forecast period. Currently, consumers in the country prefer recyclability and biodegradability as essential packaging parameters over reusability. This underlines the growing concerns of consumers about the environmental impact of packaging waste in the future.

• With advanced technologies like digitally printed paperboard attracting high investments, the product distributors are increasingly adopting the following technology due to the solution offering interactive and colorful designs for the consumers to notice.
• In addition, factors like urban populations' rising environmental consciousness, the proliferation of sustainable packaging demand, the rise in demand for convenient packaging, the expansion of e-commerce, and the rising demand for electronic goods, home, and personal care products are all driving the country's paper and paperboard packaging market forward.
• The country is also witnessing huge demand for corrugated box packaging with the growth of the e-commerce sector. For instance, according to Australia Post, Year-on-Year sales growth increased for e-commerce industries like home and garden (37%), food and liquor (32%), hobbies and recreational goods (31%), variety stores (30%), fashion (27%), health and beauty (24%). Also, according to National Australia Bank, the distribution of online spending on homeware and appliances, department stores, grocery and liquor, personal and recreational, fashion, games, and toys in August 2021 accounted for 23.8%, 16.3%, 15.3%, 12.45, 10.9%, 8.9% respectively. This has further increased the demand for corrugated box packaging of end products and secondary packaging, such as folding cartons that must be delivered to online shoppers' doorsteps.
• Moreover, vendors are expanding their presence in the country owing to the increased demand for paperboard, folding carton, and corrugated box packaging. For instance, in November 2021, UFP Industries, Inc. announced that one of its wholly-owned subsidiaries, The UBEECO Group, has acquired The Box Pack Trust with an investment of AUD 8.2 million (~ USD 5.4 million) to expand its presence in corrugated packaging. The acquisition also helps the company to scale in lithographic cardboard packaging with the latest CAD design and finishing techniques. Further, the merger also helps the company gain a more significant customer base in the food and beverage, confectionery, pharmaceutical, industrial and agricultural sectors.
• The packaging industry is bleeding profusely due to an uncontrolled rise in the price of its primary raw material, Kraft Paper. Kraft Paper Mills attributes the decreased availability to increased costs of imported and domestic wastepaper on the supply side following the COVID-19 pandemic lockdowns and widespread international logistics disruptions.
• COVID-19 had a negative impact on the packaging industry, resulting in a nationwide lockdown, corporations shifting their sourcing away from China, and packaging materials being reconsidered. Despite a significant effect on the supply side of paper packaging, considerable growth in end-user demand in specific applications has significantly expanded the scope of paper packaging.