Australia Flexible Packaging Market Growth Analysis - Market Size, Share, Forecast Trends and Outlook Report (2025-2034)

Australia Flexible Packaging Market Overview

The Australia flexible packaging market has experienced robust growth, underpinned by a rising emphasis on sustainability and regulatory shifts promoting eco-friendly solutions. Adopting recyclable, biodegradable, and compostable materials aligns with consumer values and government environmental initiatives. Flexible packaging’s lightweight structure significantly reduces raw material usage, transportation costs, and emissions, offering a cost-efficient yet environmentally responsible solution. ePac Flexible Packaging launched in Australia in late 2021, opening its first manufacturing facility in Melbourne. Built on digital printing technology, it supported small and medium-sized businesses with fast lead times and sustainable solutions. The launch marked a key milestone in expanding ePac’s global presence and community-focused mission.

The demand of the Australia flexible packaging market is driven by evolving consumer preferences prioritising convenience, portability, and sustainability. Features such as resealability, ease of opening, and compact formats cater to busy, on-the-go lifestyles. From a design standpoint, flexible packaging offers brands greater customisation capabilities, enabling tailored solutions for diverse product categories.

Australia Flexible Packaging Market Growth

The Australia flexible packaging market growth remains on an upward trajectory, supported by efficient material usage, minimised production waste, and a strong alignment with sustainability objectives and regulatory trends. Enhanced barrier properties help extend product shelf life by protecting contents from moisture, light, and oxygen. A notable case includes MasterFoods, a Mars Australia brand, which in November 2024 piloted the country’s first curbside-recyclable, paper-based tomato sauce sachets containing 58% less plastic. This AUD 4.77 million innovation met food safety standards while supporting Australia's National Packaging Targets. The success of such initiatives underscores how sustainability-led innovation is shaping market growth and shifting consumer expectations.

Opportunities in the Australia flexible packaging market are expanding as manufacturers and brands increasingly prioritise energy efficiency and reduced emissions. Flexible packaging requires significantly less energy to produce than rigid alternatives, and its lightweight structure helps lower shipping costs and carbon output. The customisation potential, ranging from size and shape to print and function, allows brands to tailor solutions for diverse product categories, especially in food, personal care, and healthcare.

Key Trends and Developments

The Australia flexible packaging market experienced growth driven by sustainability and eco-friendly materials, rising e-commerce and home delivery demand, advancements in barrier and smart packaging technologies, and increasing usage across the food and beverage sector to enhance shelf life, convenience, and branding.

April 2025

Ahlstrom secured home compostability certification from the Australasian Bioplastics Association for its Sulpack® flexible packaging range. Designed for greasy food applications, Sulpack® offered a PFAS-free, sustainable alternative. This certification reinforced Ahlstrom’s market presence in Australia and New Zealand, aligning with regional demand for eco-friendly, fibre-based packaging solutions.

November 2023

UK-based Roberts Mart launched Biyo, a home compostable flexible packaging product, in Australia. This material, designed for food packaging, meets both European and Australian compostability standards. The product aims to address the growing demand for environmentally friendly solutions, with initial interest from fresh food packers.

February 2023

Nestlé and Mars Wrigley Australia began trialling paper packaging for their confectionery brands, aiming to reduce plastic use. This initiative positioned Australia to lead ‘paperization’ in the APAC region, aligning with environmental targets and consumer demand for recyclable, sustainable packaging alternatives, despite technical and logistical challenges.

January 2023

KM Packaging established KM Packaging Services ANZ Pty Ltd in Sydney, New South Wales. With over two decades of exporting to Australasia, this move was part of their strategic growth plans. The expansion aimed to strengthen relationships and explore new opportunities in various sectors. This move aligned with KM's long-term growth strategy.

Sustainability and Eco-Friendly Materials Driving Demand of the Australia Flexible Packaging Market

Rising environmental concerns and consumer preference for sustainable products have catalysed demand for recyclable and biodegradable flexible packaging. Regulatory pressures and corporate ESG commitments are encouraging brands to shift towards low-impact materials, fostering innovation in bio-based films and compostable alternatives. This trend is expected to redefine supply chains and brand strategies across the FMCG sector.

Growth in E-Commerce and Home Delivery Services is Boosting the Australia Flexible Packaging Market Expansion

The expansion of online retail and home delivery services has significantly influenced the flexible packaging market. Lightweight, durable, and cost-effective solutions are in high demand for shipping and protecting products. Brands are increasingly adopting customisable flexible packaging to enhance unboxing experiences, meet logistical needs, and minimise damage during transport, boosting consumer retention and brand loyalty.

Technological Advancements in Barrier and Smart Packaging are Impacting the Australia Flexible Packaging Industry Revenue

Innovation in barrier technologies has improved shelf life and product protection, particularly in the food and pharmaceutical sectors. Concurrently, smart packaging solutions incorporating QR codes, sensors, and NFC technologies are gaining traction. These enhance product traceability, authentication, and consumer engagement, positioning flexible packaging as a value-added component of integrated product and supply chain strategies.

Rising Demand Across the Food and Beverage Sector is Influencing the Australia Flexible Packaging Market Dynamics and Trends

Flexible packaging continues to see robust growth in the food and beverage industry, driven by convenience, extended product shelf life, and visual appeal. Single-serve and ready-to-eat formats have increased post-pandemic, favouring pouches, sachets, and resealable films. This trend aligns with evolving consumer lifestyles and supports brand differentiation in highly competitive retail environments.

Australia Flexible Packaging Market Trends

Sustainability is emerging as a pivotal trend in the Australia flexible packaging market, driven by heightened consumer awareness and stringent regulatory requirements. There is a clear shift towards recyclable, biodegradable, and renewable packaging materials, leading to the development of innovative solutions such as compostable films and plant-based plastics. This transformation is accentuated by data from the Australian Packaging Covenant Organisation (APCO), which reports a near doubling of recovery rates through the Container Deposit Scheme via depots and reverse vending machines from 2018-19 to 2022-23. As brands prioritise eco-friendly options, manufacturers are increasingly focusing on sustainable material development, positioning sustainability as a key market growth driver.

Australia Flexible Packaging Market Opportunities

The Australia flexible packaging market is witnessing significant growth, primarily driven by the food and beverage sector. As consumer preferences evolve towards convenient, portion-controlled, and portable food solutions, flexible packaging offers an ideal response. Innovations in materials that enhance shelf life and preserve product freshness are key to meeting these demands. According to the Australian Bureau of Statistics (ABS), in 2023-24, an estimated 15.3 million tonnes of food and non-alcoholic beverages were sold across various retail channels, marking a 3.5% increase from the previous year. This growth, alongside the rising demand for healthier, organic options, positions flexible packaging as a pivotal player in the sector's sustainable future.

Market Restraints

The Australia flexible packaging market faces significant challenges, including limited recycling infrastructure for multi-layered materials and the high cost of sustainable materials like biodegradable films. Additionally, consumer awareness of recycling practices remains low, contributing to contamination.

A complex regulatory environment and competition from rigid packaging, known for its durability, further complicate market growth. Addressing these issues is essential to drive long-term innovation and sustainability in the flexible packaging sector.

Australia Flexible Packaging Market Share

By Packaging Material Insights

According to the Australia flexible packaging market report, polyethylene (PE) holds a significant share due to its flexibility, cost-effectiveness, and light weight. These attributes help to reduce transportation expenses and carbon emissions. PE’s robust moisture resistance and durability make it ideal for a wide array of products, including food, beverages, and consumer goods. Cadbury Australia had partnered with Amcor to decrease the use of virgin plastic by sourcing 1,000 tonnes of recycled plastic. The initiative, which began in February 2024, aimed to wrap 500 million Dairy Milk blocks with 50% recycled material, promoting a circular packaging economy and advancing sustainable packaging practices. As a result, PE’s adoption in the flexible packaging sector continues to expand.

The Australia flexible packaging market is witnessing significant growth, with polyethylene terephthalate (PET) gaining traction as a preferred packaging material. PET’s lightweight, durable, and recyclable nature enhances its eco-friendliness, positioning it as a sustainable alternative to traditional plastics. Its superior barrier properties help preserve product freshness, making it particularly advantageous in the food and beverage sector. PET's clarity also improves product aesthetics, while its cost-effectiveness and customisation options provide brands with flexibility in design and functionality. In December 2023, Circular Plastics Australia (CPA) launched the largest PET plastic bottle recycling plant in Victoria. This facility, a joint venture between Pact, Cleanaway Waste Management, Asahi Beverages, and Coca-Cola Europacific Partners, marks a significant milestone in sustainable packaging.

By Product Analysis

According to the Australia flexible packaging market report, the market remained predominantly led by films and wraps, attributed to their lightweight, high-barrier properties against moisture, oxygen, and light. These materials are extensively utilised across food, beverage, and pharmaceutical applications, offering significant customisation and cost-efficiency. In February 2025, five: am became the first Australian yoghurt brand to introduce paper-based tubs, composed of 90% paperboard with a polyethene lining. This initiative, aimed at eliminating over 100 tonnes of virgin plastic annually, signalled a meaningful shift towards sustainable packaging. Such innovations align with consumer demand for recyclable formats and further reinforce the sector's transition towards eco-conscious solutions.

Rollstock has emerged as a primary growth driver within the Australia flexible packaging landscape, due to its adaptability, cost-effectiveness, and suitability for high-speed, continuous production lines. Its compatibility with automated machinery enhances operational efficiency and scalability, particularly in the food and beverage sectors. Rollstock’s superior sealing capabilities and reduced material waste further bolster its environmental and economic appeal.

By Application Insights

The Australia flexible packaging market is experiencing robust growth, particularly driven by the food and beverage sector. SIG launched Australia’s first recycle-ready bag-in-box water packaging in July 2024, using a mono-polyethylene structure to eliminate aluminium. Manufactured in Adelaide, the pack reduced plastic use, met 2025 packaging targets, and was assessed as ‘Check Locally’ recyclable. The introduction of SIG's innovative recycle-ready bag-in-box water packaging demonstrates the industry's shift towards sustainable solutions, addressing both environmental targets and consumer demand for eco-friendly packaging.

The personal care and cosmetics sector is another significant driver of the Australia flexible packaging market growth, with demand fuelled by the need for high-performance packaging that ensures product safety and quality. Flexible packaging is favoured for its leak prevention and ability to preserve the integrity of cosmetics. The Australian cosmetics market, valued at approximately AUD 5.5 billion, as per the International Trade Administration, is witnessing a growing need for packaging that combines functionality with sustainability. Companies are increasingly adopting eco-conscious packaging solutions, aligning with both regulatory pressures and consumer preferences for environmentally responsible products.

Australia Flexible Packaging Market Regional Insights

New South Wales Flexible Packaging Market Insights

The flexible packaging market in New South Wales is expanding, driven by growing demand for sustainable solutions across various industries. The region benefits from a strong emphasis on eco-friendly materials, with innovations in recyclable, biodegradable, and lightweight packaging. The New South Wales Environment Protection Authority (EPA) introduced new restrictions on single-use plastics in food and beverage packaging, which took effect from 1 January 2025.

Queensland Flexible Packaging Market Trends

The Queensland flexible packaging market is experiencing significant growth, propelled by consumer demand for convenience and sustainability. Circular Communities Australia launched Australia’s first purpose-built big bag recycling plant in Toowoomba, Queensland, in February 2025. The facility aims to recycle large industrial bags, diverting 4,000 tonnes of waste annually, reducing CO2 emissions by 5,871 tonnes, and creating local jobs, supporting a circular economy and sustainability.

Western Australia Flexible Packaging Market Dynamics

According to the Australia flexible packaging industry analysis, Western Australia is seeing rapid growth, driven by the widespread adoption of sustainable and innovative materials. High demand from the food and beverage sector, coupled with an increasing focus on reducing environmental impact, is accelerating this trend. Western Australia’s gross household disposable income per capita rose 2.3% to AUD 62,539 in 2022-23, which was 10.1% (AUD 5,715) higher than the Australian average of AUD 56,824.

Victoria Flexible Packaging Market Drivers

Victoria benefited from a robust manufacturing ecosystem and strong food processing sector, both key drivers of flexible packaging demand. Government sustainability initiatives and growing consumer preference for recyclable and compostable materials enhanced innovation. The region’s logistics infrastructure supported efficient supply chain integration, making Victoria a central hub for eco-friendly and performance-based flexible packaging solutions.

Australian Capital Territory Flexible Packaging Market Opportunities

The ACT benefited from policy-driven demand for sustainable packaging and public sector alignment with environmental goals. As a centre for government procurement and institutional consumption, the region drove uptake of recyclable and smart flexible packaging. Educational institutions and R&D facilities further supported the growth of innovative packaging formats tailored to healthcare, food services, and administrative sectors.

Competitive Landscape

The Australia flexible packaging market is characterised by key players offering tailored, cost-effective solutions across sectors such as food, pharmaceuticals, and retail. These companies prioritise sustainability, responding to growing consumer demand for eco-friendly options like recyclable, biodegradable, and compostable materials. Innovation, customer-centricity, and efficiency in packaging designs are core to their value propositions, ensuring reduced environmental impact and waste. These firms have solidified their reputation for reliability and forward-thinking practices in sustainable packaging.

Key Industry Players

The Bag Broker: It is a UK-based supplier of eco-friendly packaging solutions, specialising in reusable bags and custom-made packaging. Established in 2008, the company focuses on providing sustainable, high-quality products for businesses worldwide, with an emphasis on reducing plastic waste. Their headquarters are in Manchester, United Kingdom.

AAG Packaging: It is an Australian packaging supplier offering custom-designed, sustainable, and cost-effective packaging solutions across various industries. Founded in 1994, the company is committed to innovation in packaging materials, including flexible and environmentally friendly options. AAG Packaging is headquartered in Sydney, Australia, with a focus on quality and service.

Filton Packaging: It is a UK-based supplier of flexible packaging solutions, providing custom-made and sustainable packaging for a variety of industries, including food and pharmaceuticals. Established in 1980, Filton Packaging focuses on offering high-quality, cost-effective, and eco-friendly options. The company is headquartered in Bristol, United Kingdom, and serves clients globally.

Orora Ltd.: It is an Australian packaging company specialising in the production of sustainable packaging solutions, including paper, cardboard, and flexible materials. Founded in 2013, Orora has its headquarters in Melbourne, Australia, and operates internationally, offering packaging services to a diverse range of industries with a focus on sustainability and innovation.

Other key players in the Australia flexible packaging market report are Gravure Packaging Group (Australian Packaging), Perfection Packaging, Wing Flexible Packaging Pty Ltd. and Metalprint Australia, among others.