Australia Contract Packaging Market Report and Forecast 2025-2034

According to this report, the Australia contract packaging market size witnessed a healthy growth in 2024. Aided by the increasing demand for customised packaging solutions and the growing trend of outsourcing packaging services, the market is projected to grow at a CAGR of 9.3% between 2025 and 2034.

Contract packaging refers to the outsourcing of packaging processes to specialised third-party companies, allowing businesses to focus on their core operations while ensuring that their products are packaged efficiently, safely, and in accordance with regulatory standards. These services encompass a broad spectrum of packaging solutions, including product filling, labelling, assembling, and final product packaging.

One of the primary factors propelling the growth of the Australia contract packaging market is the rising demand for efficient and flexible packaging solutions. As the packaging needs of businesses become more complex, particularly in industries like food, pharmaceuticals, and consumer goods, many companies are seeking external partners to handle their packaging processes.

Outsourcing packaging allows businesses to leverage the expertise of specialised contract packagers who possess the necessary equipment, skills, and knowledge to deliver high-quality packaging solutions in a timely and cost-effective manner. This is particularly appealing for small and medium-sized businesses that may lack the resources to manage in-house packaging operations.

The food and beverage industry remains one of the largest end-users in the Australia contract packaging market. As the demand for convenience food, ready-to-eat meals, and beverages continues to rise, there is an increasing need for specialised packaging that can maintain product integrity and extend shelf life. Additionally, the growing popularity of organic, natural, and health-conscious products has led to a shift towards innovative packaging formats that appeal to environmentally conscious consumers.

Contract packaging companies are rising to this challenge by offering sustainable packaging alternatives, such as biodegradable, recyclable, and compostable materials. This trend towards eco-friendly packaging has gained significant traction among Australian consumers, driving the demand for contract packaging services that can provide sustainable solutions to meet this need.

Another important factor contributing to the Australia contract packaging market expansion is the evolving regulatory landscape, particularly in industries such as pharmaceuticals and cosmetics. Strict regulations governing packaging standards, labelling, and product safety require businesses to partner with contract packaging providers who are well-versed in compliance and regulatory requirements.

In the pharmaceutical industry, for example, packaging plays a critical role in protecting the product from contamination and ensuring that medicines are delivered to consumers in optimal condition. Contract packagers specialising in pharmaceutical products are well-equipped to handle the unique challenges of packaging medicines, including tamper-evident seals, child-resistant closures, and accurate labelling.

Furthermore, the increasing focus on sustainability and reducing the environmental impact of packaging is revolutionising the Australia contract packaging market landscape. As consumers become more aware of the environmental consequences of packaging waste, there is growing pressure on businesses to adopt greener packaging solutions. Contract packaging companies are responding to this shift by offering services that incorporate recycled materials, reduce packaging waste, and minimise the carbon footprint of their operations. Many businesses in Australia are turning to contract packagers to help them meet sustainability goals and align with consumer preferences for environmentally friendly products.

As per the Australia contract packaging market analysis, the trend toward product diversification and personalisation has increased the need for contract packaging services that can offer flexible and scalable solutions. As businesses seek to introduce new products and cater to niche markets, contract packagers are becoming valuable partners in the development of innovative packaging formats that meet the specific needs of different product categories. Whether it’s the packaging of skincare products, gourmet foods, or health supplements, contract packaging companies are helping businesses design unique packaging that enhances the appeal of their products and meets consumer expectations.

While the Australia contract packaging market is experiencing robust growth, businesses must also navigate certain challenges. The fluctuating costs of raw materials and transportation, for instance, can lead to increased packaging costs. In response, many contract packaging companies are exploring ways to optimise their supply chains and improve operational efficiency to mitigate cost increases. Technological advancements in packaging automation and robotics are also playing a role in addressing these challenges by reducing labour costs and improving packaging speed.

Despite these challenges, the Australia contract packaging market is poised for continued growth. The increasing trend of outsourcing packaging functions, combined with the rising demand for sustainable, cost-effective, and customised packaging solutions, will continue to drive the market expansion. The ongoing developments in e-commerce and the growing focus on consumer convenience and product quality will further fuel the demand for contract packaging services in Australia.

In conclusion, the Australia contract packaging market outlook is set to experience a positive trajectory, underpinned by the growing need for efficient, sustainable, and tailored packaging solutions across various industries. With an increasing emphasis on consumer satisfaction, environmental responsibility, and regulatory compliance, contract packaging companies are well-positioned to meet the evolving needs of Australian businesses. By offering flexible, high-quality packaging solutions, these companies play a crucial role in enhancing product presentation, extending shelf life, and ensuring the safety and integrity of goods. As the demand for specialised packaging continues to rise, the market is expected to remain a key player in the global packaging landscape.

Market Segmentation

The market can be divided based on packaging type, material, end use, and region.

Market Breakup by Packaging Type

• Primary
• Secondary
• Tertiary

Market Breakup by Material

• Plastic
• Glass
• Metal
• Paper and Paperboard

Market Breakup by End Use

• Pharmaceutical
• Personal Care
• Food and Beverage
• Electronics
• Home Products and Fabrics
• Others

Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• Australian Capital Territory
• Western Australia
• Others

Competitive Landscape

The report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the Australia contract packaging market. Some of the major players explored in the report are as follows:

• Assemco Outsourcing Melbourne Australia
• Ultra Pak (Australia) Pty Ltd.
• Chemical Solutions Pty Ltd
• Probiotec Limited
• Outsource Packaging
• Brilliant Group
• CMTP
• Fantastick Label Company
• Packcentre Marketing Services Pty Ltd.
• Contract Packaging Systems Pty. Ltd
• A&M Packaging
• Others