Market Trends of Australia Retail Bags Industry
Paper and Natural Fabric to Witness Significant Growth
- Paper and paperboard packaging accounts for more than half a portion of the overall packaging consumed in Australia, as paper packaging showcase higher recovery and recycling rates. According to the Australian Packaging Covenant Organization (APCO), the paper and paperboard packaging consumption in 2019 was 55% of the overall packaging consumed. The increasing paper packaging consumption is projected to fuel the demand for retail paper bags.
- Australia's 2025 national packaging target supported by the Australian industry and government includes 100% reusable, recyclable, or compostable packaging, 70% of plastic packaging being recycled or composted, 50% of average recycled content contained in the packaging, and the phase-out of problematic and unnecessary single-use plastics packaging to deliver a new and sustainable approach to packaging in Australia. These packaging target drives the demand for paper and natural fabric retail bags as these bags are recyclable, compostable, or reusable.
- The increasing awareness among consumers and the increased urge among the brands to attain sustainability goals bolster the sales of paper and natural fabric retail bags in Australia. Besides this, manufacturers' surge in paper bag production presents a growth opportunity for the retail paper bags market. As per the Australian Bureau of Statistics (ABS) data, the paper bag manufacturing industry added USD 57 million in 2020-2021 to the overall Australian manufacturing industry.
- The increasing retail turnover across the various states of Australia creates growth opportunities for retail packaging manufacturers, including retail bags. The increased turnover indicates increased sales which result in demand for packaging solution. This supplements the sales of paper and natural fabric retail bags in Australia. The retail turnover in February 2023 increased compared to the retail turnover in February 2022 in different states of Australia. The retail turnover in New South Wales in February 2022 was USD 9,201.0 million, which increased to USD 9,818.6 million in February 2023. The increased retail turnover positively impacts the paper and natural fabric retail bags market.
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Foodservice Industry to Hold Major Market Share
- The food service industry in Australia is dynamic and evolving with the changing consumer lifestyle. The industry includes fast-food outlets, cafes, caterers, full-service restaurants, and other places which prepare, serve, and sell food to consumers for a profit. This industry contributes more to the Australian economy than food retailing. Australian propensity to eat out is high in the world. The expanding food service industry in Australia is expected to fuel the demand for sustainable packaging solutions, including paper retail bags.
- According to the US Department of Agriculture, the value of the Australian consumer food service sector was AUD 54 billion (USD 41 billion) in 2021. Australia's institutional food service industry (aged care, hospitals, etc.) continues to expand due to an aging population as more senior citizens rely on institutional food services. This expanding sector presents growth opportunities for retail bag manufacturers in Australia.
- The turnover of cafes, restaurants, and takeaway food service is rising in various states of Australia compared to the previous year. The turnover in New South Wales increased to USD 1662.5 million in January 2023 compared to USD 1237.1 million in January 2022. The growing trend can be observed in terms of turnover compared to the previous year in each state of Australia. The rising urban population and the shifting trend toward outside eating bolstered the growth of cafes and restaurants, which resulted in an increased number of cafes and restaurants in Australia.
- The number of cafés and restaurants in Australia is growing, further fueling the demand for retail bags. Over 51.9 thousand cafés and restaurants were open across Australia as of the end of the fiscal year 2022, according to the Australian Bureau of Statistics. The surge in the number of cafes and restaurants in Australia boosts the demand for retail bags to deliver food and beverage products to the consumer.
- The fast-food chains in Australia, such as McDonald's, KFC, Subway, and others, focus on sustainable takeaway or delivery packaging solutions to achieve sustainability goals and cater to government regulations. Adopting eco-friendly packaging solutions by fast-food chains in Australia fuels the demand for retail paper bags.
