Trends and Opportunities in the Australian Packaging Industry: Analysis of changing packaging trends in the Food, Cosmetics and Toiletries, Beverages and Other Industries
Packaging industry in Australia is expected to grow from 28,647.7 Million units in 2016 to 31,365.3 Million units in 2021, at a CAGR of 1.8%. Busy professionals leading a hectic lifestyle will drive the demand for smaller, on-the-go packs that are mostly available in Flexible packages. On-the-go smaller packs will also assist portion control - a key area for controlling obesity in the country. Furthermore, there will be a growing consumer inclination towards indulging in premium products that are packaged in novel/unique packages, as well as consumer consciousness towards environment protection/preservation, which will drive eco-friendly packages and the overall growth of the packaging industry in the country.
Packaging industry in Australia is characterized by packaging that enhances the utility of the products such as on-the-go packs, personalized packs, sustainable packs, and stand-out packs. In terms of packaging material, Flexible Packaging and Rigid Plastics are among the highest market share gainers, with share growths of 1.1% and 0.8% respectively during 2016-2021. This is largely due to the benefits of cost-effectiveness, light-weight, and easy handling. These pack materials find extensive use in Food and Soft Drink categories such as Bakery & Cereals, Dairy Food, and Packaged Water. On the other hand, Rigid Metal packs are forecast to lose 1.1% of their share during 2016-2021, while Paper & Board will lose share by 0.9% during the same period.
The Australian packaging industry makes extensive use of Rigid Plastic and Flexible Packages for Food categories such as Dairy Food, Bakery & Cereals and Confectionery. While Rigid Plastic offers the benefits of safe delivery of Food products from farm to table and helps in convenient refrigeration, Flexible Packages are preferred for their small pack sizes, light weight and reseal ability options such as zip-locks and spouts
Rigid Plastic, accounting for a share of 30.1% in 2016 (8,608.7 million units), is projected to grow at a CAGR of 2.4% during 2016-2021, to reach 9,690.1 million units in 2021. Rigid Plastic packaging is preferred by manufacturers as it helps to protect food and beverages during delivery from farm to table, and preserves food over longer durations. These packages also support innovations as they are available in different forms and shapes, and are cost-effective and lighter in weight - thus more convenient for packaging FMCG products. The Food and Soft Drinks industries are the major users of Rigid Plastics, accounting for 58.6% and 27.9% of packaging in these markets respectively, in 2016.
Flexible Packaging occupied a market share of 28.5% in 2016 in Australia and is expected to grow at a CAGR of 2.6% during 2016-2021, reaching 9,283.6 million units in 2021 from 8,154.3 million units in 2016, with major usage in the Food (83.8% share in 2016) and Pet Care (6.9% share in 2016) industries. This growth is largely driven by its low cost and flexibility, to suit multiple shapes and sizes, convenience (zip-locks, plastic closures), and low-carbon foot print compared to Rigid Plastics. As a result, manufacturers prefer to use Flexible Packaging for products such as Bakery & Cereals, Confectionery, and Cat/Dog Care, for convenient packaging that is cost-effective.
The report Trends and Opportunities in the Australian Packaging Industry brings together multiple data sources to provide a comprehensive overview of the Packaging industry in Australia, as part of our coverage of the industry across 20 countries. It includes Market Overview, Growth in use of Pack Material by Sector, Analysis of Key Packaging Materials, Trends and Future Outlook.
In depth, it includes analysis on the following -
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