18 Dec 2020
Posted in Packaging
Convenient formats to drive Australia’s packaging market to 35.8 billion units in 2024, says GlobalData
Due to hectic lifestyles, consumers are increasingly opting for products that are offered in convenient packaging formats. In Australia, this shift is playing a primary role in the growth of the packaging sector, which is expected to reach 35.8 billion units in 2024, at a compound annual growth rate (CAGR) of 1.2% during 2019-2024, says GlobalData, a leading data and analytics company.
GlobalData’s report, ‘Australian Packaging Industry – Trends and Opportunities’, reveals that the sector is majorly driven by growth in the glass packaging, which is forecast to register the fastest volume CAGR of 2.2% during 2019-2024. The category is closely followed by rigid plastics, which is expected to record a CAGR of 1.9% during the next five years.
Anchal Bisht, Consumer Analyst at GlobalData, says: “Hectic lifestyles and change in consumption patterns are pushing consumers towards products packed to offer convenience and support on-the-go consumption. The trend is particularly strong in sectors such as food, beverages and cosmetics.”
Food industry characterized the most use of packaging in Australia and accounted for 48.1% market share. It was followed by non-alcoholic beverages and alcoholic beverages with shares of 18.8% and 18.7%, respectively.
Rigid plastics was the most consumed pack material in Australian packaging industry and accounted for a market share of 28.3% in 2019. It is expected to reach 29.2% by 2024. Flexible packaging and glass were the other popular pack materials.
Food industry led in terms of usage of rigid plastics, with a share of 55.2% in 2019. It was followed by non-alcoholic industry which accounted for a share of 33.8% in the same year.
Ms Anchal concludes: “Sustainability is yet another trend gaining ground in the sector, pushed by rising consumer consciousness over issues of environmental degradation as well as the government-led targets for 2025 to shift towards sustainable packaging. Changes in consumer attitude towards environmental issues are significantly impacting products’ choices and prompting the manufacturers to innovate on this front.”