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Australia Plastic Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

  • ID: 4856106
  • Report
  • January 2022
  • Region: Australia
  • 198 Pages
  • Mordor Intelligence

The Australia Plastic Packaging market was valued at USD 2,538.25 million in 2020, and it is expected to reach a value of USD 2,892.62 million by 2026, registering a CAGR of 2.14% over the forecast period( 2021 - 2026). 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 the gap of domestic demand.

Key Highlights

  • Australia witnessed a significant increase in population in the previous decade. For instance, according to the Australian Bureau of Statistics, the country’s population grew from 22 million in 2010 to over 25.6 million in 2020. This 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 has also established its ambitious 2025 National Packaging Targets. The targets create a new sustainable pathway for the way companies manage their packaging in the country. The Australian industry and Government also support the 2025 National Packaging Targets (2025 Targets) in order to deliver a new and sustainable approach to packaging. These targets will be applied to all the packaging that is 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 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 would 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 its benefits in comparison to alternatives are enabling the manufacturers to continue production.

Key Market Trends

Increasing Demand from the Food Industry

  • The major force driving the growth of the plastic packaging market in Australia is the demand for single-serve and portable food packs due to lifestyle changes. Also, an increase in cross-border e-commerce, investments in improved logistics, and bilateral trade agreements are framing Australia as a prominent country in food exports.
  • For instance, according to Grain Trade Australia, in FY 2020, the value of almonds exported from the country amounted to approximately AUD 647.6 million, which was the highest valued horticulture export product. Also, in terms of fresh fruit, table grapes were the highest valued export product in the same year, which was around AUD 623 million.
  • On the production end, manufacturers have been increasing their output in order to cater to the local and international demands. This will directly boost the volume of plastic packaging in the country. For instance, according to the Australian Bureau of Statistics, in FY 2020, the total production value of almonds in the country amounted to around AUD 954 million. Almonds were also the leading nut that was produced in the country in terms of in-shell weight.
  • Additionally, convenience food demand in Australia is on a rising trend due to consumers increasingly demanding foods that are healthy and convenient in terms of packaging and handling, leading to an increased usage of plastics in packaging.

Increased Eco-friendly Packaging and Recycled Plastics

  • According to the government's 2025 waste recycling plans, regulation on the commitment to reduce packaging waste generated and to make it easier to be recycled was designed. In 2019, out of the 393,800 tons of plastics collected for reprocessing, approximately 52% were reprocessed in Australia, and 48% were exported.
  • The major plastic beverage bottler, Coca-Cola, previously produced the country's first carbonated soft drink bottles made from 100% recycled plastic. The company plans to replace all of Coca-Cola Amatil's single-serve plastic bottles in Australia with the new fully recycled materials going forward.
  • Such increased concerns for recyclability in the country are boosting innovations in the market from the packaging manufacturers as well as end-user sectors. Bioplastics, fiber-based paper packaging, and other innovations are witnessing growth because the blend within the materials is making the recycling process easier and cheaper and also reducing the decomposition time in landfills.
  • Similarly, Amcor launched its Amlite Ultra Recyclable, which was the first packaging product made from sustainable high-barrier polyolefin film. This laminate can package a range of food, home and personal care, and pharmaceutical products with ease in recyclability. Together with recyclability, such change aims to reduce a pack's carbon footprint by up to 64%.

Competitive Landscape

Australia's plastic packaging market is highly fragmented, and the current competitors in the market are striving to differentiate their offerings based on recycled content in packages and ease of recyclability of the plastic packaging. Vendors are also competing with international players who occupy a larger share in the market by constantly acquiring, innovating, and partnering, which is expected to intensify the rivalry. Some of the key players are Orora Packaging Australia Pty Ltd, Filton Packaging Pty Ltd., Flexible Packaging Solutions Pty Ltd., and Econopak Flexible Packaging.

  • August 2021 - Caspak introduced the L2025 Series Recyclable Barrier Shrink Lidding Film. The REDCycle-compatible lidding film meets performance requirements, ensuring that products arrive at their destination with intact product security and food safety.
  • In September 2021, TricorBraun has entered into an agreement to acquire Cormack Packaging, which will establish the former's footprint in Australia and New Zealand to serve the food and beverage, pharmaceutical, personal care, industrial, and household cleaning industries with rigid packaging.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

This product will be delivered within 2 business days.
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1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.3 Industry Value Chain Analysis
4.4 Assessment of COVID-19 impact on the industry
4.5 Export-Import Analysis
4.6 List of Flexible Packaging Printer/Convertors
5.1 Market Drivers
5.1.1 Increasing Demand from the Food Industry
5.1.2 Increased Eco-friendly Packaging and Recycled Plastics
5.2 Market Challenges
5.2.1 Fluctuating Raw Material (Plastic Resin) Prices
5.2.2 Stringent Environmental Regulations
6.1 Rigid Packaging
6.1.1 Material Polyethylene terephthalate (PET Polypropylene (PP) Polystyrene (PS) and Expanded Polystyrene (EPS) Polyvinyl chloride (PVC) Polyethene (PE)
6.1.2 By Product Bottles and Jars Trays and Containers Other Product Types
6.2 Flexible Packaging
6.2.1 Material Polyethene (PE) Bi-orientated Polypropylene (BOPP) Cast polypropylene (CPP) Polyvinyl Chloride (PVC) Other Flexible Packaging Materials
6.2.2 Product Pouches Bags Films & Wraps Other Product Types
6.3 Industrial Plastic Film Market
6.3.1 Stretch Film
6.3.2 Agricultural Film
6.4 End-user Industry
6.4.1 Food
6.4.2 Beverage
6.4.3 Healthcare
6.4.4 Personal Care and Household
6.4.5 Other End-user Industries
7.1 Company Profiles
7.1.1 Orora Packaging Australia Pty Ltd
7.1.2 Filton Packaging Pty Ltd
7.1.3 Flexible Packaging Solutions Pty Ltd
7.1.4 Gravure Packaging Ltd
7.1.5 Econopak Flexible Packaging
7.1.6 Pro-Pac Packaging Pty Ltd
7.1.7 A&M Packaging Pty Ltd
7.1.8 Caspak Products Pty Ltd
7.1.9 Synergy Packaging (RPC Group)
7.1.10 Visy Industries Australia Pty Ltd
7.1.11 Pact Group Holdings Australia Pty Ltd
7.1.12 Cospak Pty Ltd
7.1.13 Vacupack Pty Ltd
7.1.14 Plasmo Pty Ltd
Note: Product cover images may vary from those shown