23 Jun 2021
Posted in Packaging
Australian packaging market to grow at 1.7% CAGR through 2025, forecasts GlobalData
The packaging industry in Australia is forecast to grow at a compound annual growth rate (CAGR) of 1.7% during 2020-2025 to reach 37.3 billion units in 2025 due to growing popularity of novel/unique packages and rising awareness about environment preservation, forecasts GlobalData, a leading data and analytics company.
GlobalData’s report, ‘Australia Packaging Industry – Market Assessment, Key Trends and Opportunities to 2025’, reveals that the sector is majorly driven by growth in rigid plastics packaging, which is forecast to register a volume CAGR of 1.8% during 2020-2025. Rigid plastics was the most consumed pack material in the Australian packaging industry in 2020. It accounted for a market share of 29.2% in 2020 and is forecast to reach 29.3% by 2025. It is closely followed by flexible packaging, which is projected to record a CAGR of 1.6% during the forecast period.
Monika Bargla, Consumer Analyst at GlobalData, says: “There is a growing consumer inclination towards premium products in novel/unique packages. Additionally, rising consumer consciousness towards environment preservation is driving the use of eco-friendly packages in the country. This is substantiated by GlobalData’s Q1 2021 consumer survey in which 26% of the Australian consumers said that environmentally-friendly packaging material is an influential factor when deciding which products to purchase.”
In Australia, food industry was the largest end-user of packaging materials, accounting for a volume share of 51.3% in 2020. It was followed by non-alcoholic beverages and alcoholic beverages industries with shares of 18.2% and 16.9%, respectively.
Food industry was leading in terms of usage of rigid plastics, with a share of 58.5% in 2020. It was followed by non-alcoholic beverages industry which accounted for a share of 31.1% in the same year.
Ms Monika concludes: “Hectic lifestyles and changing consumer preferences will boost the demand for smaller packs which are convenient and support on-the-go consumption, particularly in the non-alcoholic beverages industry. Additionally, with consumers becoming increasingly conscious of the impact of their actions on the environment, manufacturers will be forced to innovate and explore alternative materials to plastic, while ensuring that these materials are recyclable.”
- GlobalData’s Q1 2021 consumer survey was carried out in February 2021 with a sample size of 500 respondents