Australia Plastic Packaging Market Size

Australia Plastic Packaging Market Analysis

The Australia Plastic Packaging Market size is estimated at USD 2.79 billion in 2024, and is expected to reach USD 3.09 billion by 2029, growing at a CAGR of 2.14% during the forecast period (2024-2029).

Polyethylene terephthalate (PET) is found in most plastic-packed products in the country. For instance, as per Macquarie University, Australians buy more than approximately 118,000 metric tons of plastic drink bottles every year, despite 250 stringent checks by the Australian water utilities for tap water. Based on such facts, the existing packaging manufacturers are increasing their capacities to bridge domestic demand gaps.

• Australia witnessed a significant increase in population in the previous decade. It is anticipated to drive the demand for more consumables, like beverages, packaged meals, packaged drinking water, and convenience packages like microwave and oven safe, among others, which prefer plastic packaging medium over other alternatives, owing to high portability enabled by the lightweight of the plastics.
• The country also established its ambitious 2025 National Packaging Targets. The targets create a new sustainable pathway for how companies manage their packaging in the country. The Australian industry and Government also support the 2025 National Packaging Targets (2025 Targets) to deliver a new and sustainable approach to packaging. These targets will be applied to all the packaging made, used, and sold in the country. Australian Packaging Covenant Organisation (APCO) is the organization that the Government charges to facilitate the delivery of these 2025 Targets. In response, the Australian Government realized the adoption of the Circular Economy model aligning with 100% sustainable packaging practices by 2025.
• However, the country is undertaking efforts to reduce plastic packaging, but its benefits in comparison to alternatives are enabling the manufacturers to continue production.
• The stringent government regulations over plastic packaging used to reduce the environmental impact can hinder the market's growth. Substitute availability, which impacts the environment, created barriers to market growth.
• Additionally, the need for packaging equipment and goods is rising in the Australian market. The entire industry aspires to lower costs, increase productivity, and improve product quality through equipment replacement and manufacturing process optimization. These are some of the critical factors helping to create growth options for the market.
• Consumers, producers, and manufacturers know that packaging plays a significant role in the food and beverage, eCommerce, healthcare, and transportation industries after Australia experienced droughts, floods, and fires and after the pandemic turned the world upside down.