Australia PE Films Market Size, Share and Growth Analysis Report: Forecast Trends and Outlook (2026-2035)

Key Market Trends and Insights

• The Australian Capital Territory dominated the market in 2025 and projected to garner a 3.8% CAGR during the forecast period.
• By type, linear low-density polyethylene (LLDPE) is expected to grow at a CAGR of 3.9% over the forecast period.
• By end-use, the packaging category is projected to witness a CAGR of 4.4% over the forecast period.

Market Size & Forecast

• Market Size in 2025: AUD 1193.91 million
• Projected Market Size in 2035: AUD 1635.94 million
• CAGR from 2026 to 2035: 3.20%
• Fastest-Growing Regional Market:  Australian Capital Territory

The Australia PE films market landscape is undergoing a major change in favor of environmentally friendly plans, with PE converters and brand owners significantly opting for circular packaging solutions and recycled-content integration. Consumer demand, retailer commitments, and regulations are prioritizing investments in post-consumer plastic recovery and local processing facilities.

For example, in early 2024, Visy acquired the assets of the insolvent recycler Advanced Circular Polymers (ACP), securing a facility capable of processing over 30,000 tonnes per year of hard-to-recycle plastics, thereby diverting a substantial volume of waste from landfills. Complementing this move, in April 2025, Cleanaway and Viva Energy signed an MoU to accelerate the establishment of Australia’s first large-scale advanced soft-plastics recycling facility, thus bringing the pre-feasibility study closer to the production of food-grade recycled resins suitable for PE film conversion.

These efforts constitute a collective move towards a closed-loop system in the Australia PE films market, which is the primary objective of the sector, thus boosting the use of rPE films, and reducing dependence on virgin polyethylene.

Recent Developments

October​‍​‌‍​‍‌​‍​‌‍​‍‌ 2025

ExxonMobil, partnered with Hosokawa Alpine and IMA Ilpak, has launched a recyclable, monomaterial PE pouch for cheese packaging. The pouch offers the same barrier and seal performance while reducing the material weight by 60%. This development aligns with global trends of sustainable, circular PE packaging, which are gradually penetrating the Australian market.

July 2025

RKW Group unveiled its new MDO PE films with an integrated EVOH barrier and optional PCR content that are designed for recyclable, mono-material packaging. These films provide a solution to a vast range of applications such as pouches, side-gusset bags, and lidding films, to name a few. Besides, they improve tear resistance, transparency, and printability and contribute to global sustainability and regulatory trends in the Australia PE films market.

May 2025

NOVA Chemicals initiated its SYNDIGO1 plant in the US for the mechanical recycling of end-of-life PE films into high-quality rLLDPE for flexible packaging. The project is a significant indicator of the worldwide move towards circular polyethylene solutions, which is a trend that is causing the Australian PE films market to change as converters and brand owners are looking for recycled-content films for their packaging applications to be able to claim they are sustainable.

December 2024

Berry Global, in partnership with VOID Technologies, introduced a recyclable, high-performance PE film for pet food packaging. The film uses VOID’s VO+™ cavitation technology and Berry’s MDO expertise to deliver the product with increased strength, toughness, and opacity, and also less plastic is being used, therefore, the film is supporting sustainability goals and enabling mono-material recycling ​‍​‌‍​‍‌​‍​‌‍​‍‌solutions.

Key Drivers and Trends

Local​‍​‌‍​‍‌​‍​‌‍​‍‌ feedstock and production resilience

The availability and efficiency of local polyethylene supply are key factors directly shaping the Australia PE films market dynamics. In November 2023, Qenos announced plans to gradually restart its ethylene and PE production at the Botany site, beginning in late January 2024, following an extended shutdown. Reviving local PE production reduces reliance on imports, ensures a more secure supply for PE converters, and supports stable pricing, thereby strengthening the overall stability and resilience of the PE films sector.

Consolidation and large-scale M&A

A series of mergers and acquisitions among international packaging players leads to the consolidation of these companies into larger, and more efficient firms. The consolidated companies then use these advantages to invest in product innovation and to offer more extensive product portfolios. Citing an instance, in April 2025, Amcor finished the stock-for-stock combination with Berry Global. The move substantially broadened Amcor's flexible film and packaging product offerings. The merger of these companies helped in geographically diversifying the business and stimulate the demand in the Australia PE films market.

Distribution and channel expansion

The distribution of PE film products through different geographical areas and the end-use sectors gets more accessible by the expansion of distribution networks and the acquisition of packaging-distribution assets. As a result of the packaging companies extending their distribution and converting activities, they introduce PE-based solutions to segments like foodservice, retail, and industrial packaging, which were previously served by alternative materials. In addition to consolidating production, the 2025 merger between Amcor and Berry Global significantly strengthened global distribution capabilities, enabling more efficient delivery of flexible film products. This expansion in distribution channels boosts accessibility, drives higher demand for PE films, and supports further growth in the Australia PE films market.

Converter research and development and new recycle ready film products

New ‍‌film technologies have made it possible to achieve strong barrier, extended shelf life, and durability features for recyclable PE films while still maintaining the packaging's performance and sustainability roles. For instance, in August 2025, PTT Global Chemical, along with its partners, announced the development of a 7-layer mono material MDOPE film with an EVOH barrier that is recyclable and provides excellent oxygen resistance for the packaging. This is an ideal example of how research and development and material innovations open opportunities in the Australia PE films market to replace less recyclable laminate ones, thus increasing film applications and driving industry growth.

Mono-material and recycle-ready film innovations through new product launches

The increasing demand for environmentally friendly packaging is making film processors start a product line in mono-material PE films. Citing an instance, in April 2023, Huhtamaki announced the global launch of "blueloop" a mono material recyclable flexible packaging range that is based on PE films designed for easy recyclability while maintaining the barrier or protection attributes. This innovation is a strong statement of agreement between the two concepts of high-performance flexible packaging and the circular economy. A huge number of PE film converters currently using such film technology will significantly affect the size of the PE films market, which is already very large, especially in the segments of consumer, food, and retail packaging that require recyclable formats.

Australia PE Films Market Share

By type, the demand for LLDPE films remains robust

The​‍​‌‍​‍‌​‍​‌‍​‍‌ demand for LLDPE films is rising consistently in the Australia PE films market, which has spurred PE converters and resin suppliers to engage in the development of various blown-film and recycled-content solutions. Qenos is a major regional supplier of film-grade LLDPE resins that are used in the production of blown films. LyondellBasell and Borealis supply commodity and specialty blown-film resins along with a variety of recycled LLDPE grades. In addition, major companies such as Amcor, Pro-Pac, Surepak, and Dolphin Plastics are producing LLDPE-based liner films, pouches, shrink, and stretch films. Similarly, Pact Group and Visy are active players in the market with PCR-enabled LLDPE flexible packaging formats.

While the solar-module market is increasingly adopting EVA films, laminated glass and flexible packaging are other segments benefiting from film manufacturers' capacity expansions. For instance, in May 2024, Gaoren extended its production of wider and thicker films up to 2.65 meters in width and 1.52 mm in thickness by opening its third EVA film production line. The additional production capacity is directed towards meeting the worldwide demand for EVA-based encapsulants and specialty films. With such initiatives, EVA is becoming a dominant category in the Australia PE films market catering to versatile applications across the renewable-energy and packaging industries.

By network end-use, packaging register remarkable market growth

Environmentally friendly challenges and upcoming recycled content regulations are encouraging Australian PE converters to increase soft plastic film recycling and production capacity. As an illustration, in August 2024 the government granted an AUD 6 million grant to the Pro-Pac Group to expand its soft plastics recycling facility and production of flexible packaging up to 11,000 tonnes per year with ~30% recycled content. This investment is a step towards the local supply of recycled PE films for packaging, which is beneficial for brands to meet the requirements of the circular economy while also cutting down the use of imported or virgin resin films.

Agricultural PE films contribute significantly to the Australia PE films market revenue resulting from the growth of local manufacturing and reducing the country's dependence on imports. For instance, in the last few years, Brisbane-based company, Signet invested a few million dollars to install a new blown film extruder which has resulted in the expansion of the yearly production capacity from approximately 1,700 tonnes to around 5,000 tonnes for packaging and agricultural films. This upgrade opens the way for the supply of UV-stable, locally produced mulch films, silage wraps, and general-purpose plastic films specifically designed for Australian agriculture and industrial needs.

By production technology, blown films gain notable traction

The blown film category is witnessing strong growth in the Australia PE films market as PE converters scale up high-performance extrusion capacity to meet rising demand for flexible packaging and industrial films. Investments are increasingly directed toward multi-layer and barrier film capabilities, allowing producers to replace imported films with locally manufactured alternatives. This shift enhances supply chain reliability, reduces lead times for brand owners, and strengthens Australia’s domestic presence in premium film production.

Cast film manufacturing in Australia is becoming popular as producers are broadening their product lines to fulfil the need for high clarity, budget-friendly, and locally sourced films in the Australia PE films market. Citing a prime instance, in April 2025, Jet Technologies rebranded its recycled content film range under Terra Films to produce PIR and PCR-based cast and laminated films for flexible packaging in Australia and New Zealand. This progression applies to market players seeking locally available, recycle-ready cast film options. It also reduces the dependency on the import of cast films while being in line with the sustainability and circular economy directives.

By distribution channel, direct sales generate significant revenue

Direct sales remain a vital channel for PE films in Australia where suppliers engage in direct selling to industrial, retail, and FMCG clients who require tailored solutions. As an example, Integrated Packaging (IPG), a leading Australian flexible packaging manufacturer, is a direct supplier of stretch, shrink, and custom polyethylene films to fresh produce packers, food processors, and industrial clients throughout the country. Clients accessing custom film grades through this direct sales method will not only enjoy the consistency but will also be able to reduce their lead times compared to import-dependent procurement, thus reinforcing the demand for locally made PE films.

Retail online development in the Australia PE films market is a major factor behind the demand for the lightweight, protective, and recyclable PE films that are used in the packaging of e-commerce. In May 2024 Surepak Pty Ltd introduced an extension of its online B2B ordering platform by adding the provision of E-commerce retailers nationwide, with the direct supply of PE based mailers, shrink films, and pouches. Brands that are seeking flexible-film packaging solutions benefit from this move through the acceleration of delivery, reduction of lead times, and the support of their digital-channel growth.

Australia PE Films Market Regional Analysis

By region, New South Wales amasses substantial growth

The demand for circular plastic supply in New South Wales is the main driver contributing to the overall Australia PE films market growth. In August 2025, the company, iQRenew received a 9.1 million AUD grant, which it used to modernize its soft plastics recycling plant at Kundle Kundle. This upgrade enables the facility to convert up to 17,000 tonnes per year of household soft plastic waste into resin feedstock suitable for packaging and film applications. The development supports the local provision of recycled PE material while reducing the reliance on the import of virgin resin. Furthermore, it encourages the production of recycled-content films for packaging and industrial applications by the local PE converters in NSW.

Victoria has emerged to be a significant hub for the manufacturing and conversion of PE films and flexible packaging in the Australia PE films market. The state is home to Pro Pac Packaging (Aust) Pty Ltd, among other companies, which run film extrusion and conversion operations and have a vast portfolio of flexible film products, ranging from low-density and linear low-density PE films to printed pouches and flexible packaging for the fresh produce and FMCG supply chains. The presence of such PE converters ensures that the demand from retail and industrial clients in Victoria and other regions can be satisfied with the locally produced PE films.

Competitive Landscape

The PE films market in Australia is heavily influenced by the push towards sustainability and circular-economy principles. Apart from companies and PE converters incorporating feedstocks with recycled content, major Australia PE films market players are upgrading their processing lines and optimizing material usage to lessen their dependence on virgin resins. These measures enable them to comply with increasing regulatory requirements and brand-owner sustainability commitments while at the same time, they facilitate the production of environmentally friendly flexible films which can be used for packaging, agriculture, and other industrial sectors throughout Australia.

The demand for flexible films is rising in a variety of different areas such as packaging, agriculture, construction, and the medical industry. Hence, the producers are paving the way for capacity expansion and a diversification of their product portfolios. The investment in advanced blown-film and cast-film technologies, multilayer films, and specialized formulations is turning Australian PE converters into capable players of high-performance applications, consistent products, and innovative PE film solutions meeting the evolving needs across the Australia PE films market landscape.

Wales Industries Pty Ltd

Wales Industries Pty Ltd, which was established in 1998 and is located in Sydney, Australia, is a manufacturer of a diverse range of polyethylene films and packaging solutions. Their products include LDPE and LLDPE films for industrial, agricultural, and retail applications.

LyondellBasell Industries Holdings B.V

LyondellBasell, a global leader in polyolefins and advanced polymer solutions, was established in 2007 and is headquartered in Rotterdam, Netherlands. The company in Australia provides blown-film resins, specialty PE grades, and recycled-content LLDPE for flexible packaging and industrial uses.

Polyem Pty Ltd.

Polyem Pty Ltd., located in Melbourne, Australia and established in 2005, is committed to the production of top-quality polyethylene films for packaging and agricultural sectors. Its product line covers LDPE, LLDPE, and co-extruded films that serve domestic PE converters and industrial clients across the Australia PE films market.

Shamrock Poly Pty Ltd.

Shamrock Poly Pty Ltd., established in 2000 and based in Brisbane, is a manufacturer of various PE film types used in the packaging, retail, and industrial sectors. Its product range comprises stretch films, liners, and printed flexible packaging solutions for the Australian ​‍​‌‍​‍‌​‍​‌‍​‍‌markets.

Other players in the market includes MegaPlastics, Qenos Pty Ltd, Dolphin Plastics & Packaging, Surepak Pty Ltd, and Pro-Pac Packaging Limited, among others.

Key Highlights of the Australia PE Films Market Report

• Comprehensive analysis of historical market performance and accurate forecasts through 2035, highlighting growth trends and segment dynamics.
• Detailed insights into product innovations, including sustainable PE films, recycled-content grades, and advanced blown and cast-film technologies.
• In-depth competitive landscape profiling of leading domestic and international PE film manufacturers, including their product portfolios, strategies, and market positioning.
• Regional analysis identifying emerging opportunities, growth hotspots in the Australia PE films market and end-use segment adoption across New South Wales, Victoria, Queensland, Western Australia, and other regions.
• Investment-focused outlook supported by data on production capacities, capacity expansions, mergers, acquisitions, and partnership strategies within the Australian PE films market.

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