Australia Paper Packaging Market Size

Australia Paper Packaging Market Analysis

The market for Australia Paper Packaging is estimated to register a CAGR of 4.2% during the forecast period. Paper is one of the most commonly used materials for packaging products. The demand for paper packaging will continue to grow over the forecast period. Developing economies like Australia will drive the market for the paper packaging segment, with applications across industries like healthcare, personal care, home care, retail, and others.

• Australia is one of the fastest-growing packaging markets in the Asia-Pacific region. The increasing consumer consciousness regarding sustainable packaging and the strict regulations imposed by numerous environmental protection agencies (regarding the use of environmentally friendly packaging products) are the factors boosting the market's growth.
• With the focus now shifting towards eco-friendliness and sustainability, paper packaging is expected to gain traction, with many countries pushing for paper packaging products over plastic packaging, which poses a significant threat to the environment. Higher recycling demand will push the use of paper as packaging material further, with consumers and businesses looking for solutions that help in cost reduction as well as in keeping the environment safe while keeping government regulations intact.
• Australia has been witnessing huge demand for corrugated packaging in the e-commerce sector. According to Australia Post, e-commerce industries such as home and garden (37%), food and liquor (32%), hobbies and recreational goods (31%), variety stores (30%), fashion (27%), and health and beauty (24%) experienced year-on-year sales growth.Also, according to the National Australia Bank, the distribution of online spending in August 2021 on homeware and appliances, department stores, groceries and liquor, personal and recreational, fashion, games, and toys accounted for 23.8%, 16.3%, 15.3%, 12.45, 10.9%, and 8.9%, respectively. This has increased the demand for secondary packaging, such as folding cartons, in the country.
• However, even though there is an increase in demand for paper packaging, irresponsible deforestation will severely impact the paperboard packaging industry by causing a loss of raw materials soon. According to the Union of Concerned Scientists, "wood products," such as paper, account for around 10% of total deforestation. Other significant contributors include cattle, soybeans, and palm oil.
• As a result of the COVID-19 outbreak, consumer behavior changed substantially. Buyers got more concerned than ever before about the hygiene, disability, and sustainability of products.The shoppers' evolving needs and a consumer-focused approach remained crucial as the crisis continued. Consumer behavior continued to change in the forecast period as the market simultaneously acclimated more to the scenario. Thus, the post-COVID future for paper and paperboard packaging looks promising in terms of demand.