Australia Plastic Packaging Market - Growth, Trends, and Forecast (2020 - 2025)

The Australia Plastic Packaging Market is Segmented by Rigid Packaging (Material, Product, End-user Industry), Flexible Packaging (Material, Product, End-user Industry), Industrial Plastic Film Market (Stretch Film, Agricultural Film).

Market Snapshot

Study Period:

2019-2025

Base Year:

2019

CAGR:

3.8 %

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Market Overview

The Australia plastic packaging market was valued at USD 3454.57 million in 2019 and is expected to reach USD 4309.98 million by 2025, registering a CAGR of 3.8%, during the period of 2020-2025. Polyethylene Terephthalate (PETE or PET) is found commonly in most plastic packed products in the country. According to Macquarie University, Australians buy more than approximately 118,000 tons of plastic drink bottles a year, despite 250 stringent checks by Australian water utilities for tap water. Based on such projections, the existing packaging manufacturers are seen increasing their capacities to meet the scale of domestic demand.

  • Australia witnessed a surge in population, representing millennials than baby boomers as per Australian Bureau Statistics. This is expected to drive the demand for more consumables like beverages, packaged and ready meals, packaged drinking water, convenience packages like microwave and oven safe, among others, which prefer plastic packaging medium over other alternatives owing high portability enabled by lightweight of the plastics.
  • Moreover, the production and consumption of PET materials in the country are on the rise and are ending up in the landfill. Such major problems of plastic waste management aroused since the Chinese government announced a ban on imported low-value and contaminated plastic materials in 2018, disrupting the export of 30% of Australia’s recyclable plastics.
  • In response, the Australian Government realized adoption of the Circular Economy model aligning with 100% sustainable packaging practice by 2025. Major FMCG companies have taken initiatives on these lines, for instance, Coca Cola Amatil announced that by the end of 2019, 70% of its plastics bottles manufactured in the country will be made from recycled plastics. Also, earlier in 2018, Unilever launched Omo’s EcoActive laundry detergent with containers/bottles made from 25% PET, sourced in Australia itself.
  • However, the country is undertaking efforts to reduce plastic packaging, but the benefits that it has in comparison to alternatives is enabling the manufacturers to continue production.

Scope of the Report

The Australia plastic packaging market is divided into three key segments. Rigid Packaging, Flexible Packaging, and Industrial Plastic Films. Rigid packaging considers products such as plastic bottles, trays, and containers, etc., made from PET, PP, PS, EPS, PVC, and PE. The flexible packaging segment considers all package films, pouches, bags, etc., other than the films and wraps that are used in industrial packaging applications. The scope of the industrial plastic film has been defined to include the stretch wrap films, and agricultural films usually made of LLDPE for wrapping pallets, agricultural haystacks, and rolls, etc.

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Key Market Trends

Beverage Segment to Augment the Australia Plastic Packaging Market

  • The beverage industry plays a vital role in Australia. The changing consumer preferences, from alcoholic and carbonated beverages, to organic and dairy beverages, are creating immense market opportunities for flexible packaging vendors in the country. According to the Australian Bureau of Statistics (ABS), the alcohol consumption rate in the country declined over the last 55 years.
  • Moreover, Australia is increasingly becoming a major exporter of dairy products. The milk production in the country is estimated to have exceeded the volume required for domestic consumption, thus, creating a marketable surplus, for the export markets.
  • In the current market scenario, exports cover almost 30–60% of the total production in the country, ranking fourth, in terms of global dairy trade (as of 2018). Such an increase in the import and export of milk products in the country is offering several opportunities for the flexible plastic packaging vendors in Australia.
  • However, increasing packaging alternatives pose a significant threat to plastic packaging products in the beverage industry. For instance, in October 2019, Brownes Dairy replaced its existing plastic and paper packaging products, with carton packages made entirely from plant-based, renewable materials. The bio-based packages offer more durable alternatives to the standard milk cartons, thus, eliminating the need for polyethylene plastic films and linings.

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Stretch Film to Execute a Significant Growth Rate Over the Forecast Period

  • Films and wraps that are used in industrial applications are considered under this segment. Agricultural films and consumer-oriented application films are not considered in this segment.
  • Stretch films are highly stretchable plastic films that are wrapped around products and are majorly used in industrial applications. The elastic recovery feature of the films keeps the items tightly bound. In contrast, shrink wrap is applied loosely around an item and shrinks tightly with heat.
  • LDPE, HDPE, and PVC are some of the majorly adopted materials for stretch films in the country. In 2018, HDPE and PVC were the most adopted plastic materials in the country’s construction sector, whereas LDPE and HDPE were the most adopted in commercial and industrial packaging. The freight packaging and building sectors are some of the sectors, where these films find massive applications.
  • Moreover, the Australian company, Pro-Pak, offers the new-generation Macro Stretch Film, which provides ease of packing and helps reduce plastic waste. According to the company, the film is proving to be a major success across the fresh produce industry.

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Competitive Landscape

Australia's plastic packaging market is a fragmented market, as the market has the presence of established manufacturers. Present competitors in the market are striving to differentiate their offerings based on recycled content in packages and ease of recyclability of the plastic packaging and are competing with international players who occupy a larger share in the market. This makes the rivalry intense in the market. Key players are Orora Packaging Australia Pty Ltd, Filton Packaging Pty Ltd., Flexible Packaging Solutions Pty Ltd., Econopak Flexible Packaging, A&M Packaging Pty Ltd., Caspak Products Pty Ltd., Vacupack Pty Ltd., among others.  Recent developments in the market are - 

  • September 2019 - The market witnessed some players expanding their production, with PM Morrison opening its new USD 20 million worth Bickford’s bottling line,  and Brownes Dairy Wiggles expanding into another region in Australia.
  • August 2018 - Orara Packaging announced the acquisition of Bronco packaging and Pollock packaging based in Texas, by investing over USD 24 million and USD 80.5, respectively, as part of its expansion strategy in the North American market for its OPS business.

 

Table Of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Introduction to Market Drivers and Restraints

    3. 4.3 Market Drivers

      1. 4.3.1 Increasing Demand from Food Industry

      2. 4.3.2 Increased Eco-Friendly Packaging and Recycled Plastics

    4. 4.4 Market Restraints

      1. 4.4.1 Fluctuating Raw material (Plastic Resin) Prices

      2. 4.4.2 Stringent Environmental Regulations

    5. 4.5 Industry Value Chain Analysis

    6. 4.6 Industry Attractiveness - Porter's Five Force Analysis

      1. 4.6.1 Bargaining Power of Buyers/Consumers

      2. 4.6.2 Threat of New Entrants

      3. 4.6.3 Threat of Substitute Products

      4. 4.6.4 Bargaining Power of Suppliers

      5. 4.6.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 Rigid Packaging

      1. 5.1.1 By Material

        1. 5.1.1.1 Polyethylene terephthalate (PET

        2. 5.1.1.2 Polypropylene (PP)

        3. 5.1.1.3 Polystyrene (PS) and Expanded Polystyrene (EPS)

        4. 5.1.1.4 Polyvinyl chloride (PVC)

        5. 5.1.1.5 Polyethene (PE)

      2. 5.1.2 By Product

        1. 5.1.2.1 Bottles and Jars

        2. 5.1.2.2 Trays and Containers

        3. 5.1.2.3 Other Product Types

      3. 5.1.3 By End-user Industry

        1. 5.1.3.1 Food

        2. 5.1.3.2 Beverage

        3. 5.1.3.3 Healthcare

        4. 5.1.3.4 Personal Care and Household

        5. 5.1.3.5 Other End-user Industries

    2. 5.2 Flexible Packaging

      1. 5.2.1 By Material

        1. 5.2.1.1 Polyethene (PE)

        2. 5.2.1.2 Bi-orientated Polypropylene (BOPP)

        3. 5.2.1.3 Cast polypropylene (CPP)

      2. 5.2.2 By Product

        1. 5.2.2.1 Pouches

        2. 5.2.2.2 Bags

        3. 5.2.2.3 Films & Wraps

        4. 5.2.2.4 Other Product Types

      3. 5.2.3 By End-user Industry

        1. 5.2.3.1 Food

        2. 5.2.3.2 Beverage

        3. 5.2.3.3 Personal Care and Household

        4. 5.2.3.4 Other End-user Industries

    3. 5.3 Industrial Plastic Film Market

      1. 5.3.1 Stretch Film

      2. 5.3.2 Agricultural Film

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Company Profiles

      1. 6.1.1 Orora Packaging Australia Pty Ltd

      2. 6.1.2 Filton Packaging Pty Ltd

      3. 6.1.3 Flexible Packaging Solutions Pty Ltd

      4. 6.1.4 Gravure Packaging Ltd

      5. 6.1.5 Econopak Flexible Packaging

      6. 6.1.6 Pro-Pac Packaging Pty Ltd

      7. 6.1.7 A&M Packaging Pty Ltd

      8. 6.1.8 Caspak Products Pty Ltd

      9. 6.1.9 Synergy Packaging (RPC Group)

      10. 6.1.10 Visy Industries Australia Pty Ltd

      11. 6.1.11 Pact Group Holdings Australia Pty Ltd

      12. 6.1.12 Cospak Pty Ltd

      13. 6.1.13 Vacupack Pty Ltd

      14. 6.1.14 Plasmo Pty Ltd

  7. *List Not Exhaustive
  8. 7. INVESTMENT ANALYSIS

  9. 8. MARKET OPPORTUNITIES AND FUTURE TRENDS

** Subject to Availability

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