Monday, 26 September 2022 08:12

Australia packaging market to witness 1.7% CAGR between 2021–26, driven by paper & board, predicts GlobalData

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The Australian packaging market is set to witness a compound annual growth rate (CAGR) of 1.7% from 47.6 billion units in 2021 to 51.9 billion units in 2026, led by an increase in demand for paper & board in packaging, predicts GlobalData, a leading data and analytics company.

GlobalData’s latest report, “Australia Packaging Market Size, Analysing Key Pack Material (Pack Type, Closure Material and Type, Primary Outer Material and Type), Innovations and Forecast, 2021-2026,” reveals that glass accounted for the maximum share of 32.7% in the Australian packaging market in 2021 and will continue to dominate through the forecast period. Flexible packaging and rigid plastic occupied a share of 21.4% each in 2021.

Biswarup Bose, Consumer Analyst at GlobalData, comments: “Apart from its premium appeal, recyclability contributes to glass’ significant usage in packaging. Growing environmental awareness is leading consumers to switch to sustainable packaging formats, such as paper & board packaging. At the same time, the increasing need for convenience-driven features such as durability and reusability are boosting the demand for rigid metal.”  

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According to the report, the food industry in Australia is the primary user of packaging materials accounting for a 38.8% share in 2021. Within the food industry, flexible packaging was the most widely used pack material, followed by rigid plastics.

Bose explains: “The demand for flexible packaging in food products is mostly attributed to its high consumption in bakery & cereals and confectionery, wherein consumers tend to look for products that offer convenience features such as zip locks, resealable closures, and light weight. The alcoholic beverages industry was the second-largest user of packaging materials in the country.”

During 2021–26, paper & board packaging is expected to record the highest growth at a CAGR of 3.4%. Growth in paper & board pack material can be attributed to its light weight, economical nature, recyclability, availability in several forms, and user-friendly factors.

Bose concludes: “Recyclability and lightweight characteristics are set to propel the demand for paper & board package. Consumers will increasingly pay greater attention to features such as eco-friendliness and sustainability. To keep up with the pace, manufacturers need to constantly innovate and stay competitive.”

About GlobalData

4,000 of the world’s largest companies, including over 70% of FTSE 100 and 60% of Fortune 100 companies, make more timely and better business decisions thanks to GlobalData’s unique data, expert analysis and innovative solutions, all in one platform. GlobalData’s mission is to help our clients decode the future to be more successful and innovative across a range of industries, including the healthcare, consumer, retail, financial, technology and professional services sectors.

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