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.”