Australia Plastic Packaging Market Size and Share Outlook: Forecast Trends and Growth Analysis Report (2024-2032)

Australia Plastic Packaging Market Trends

The growth of the Australian plastic packaging market is driven by several advantages, including its cost-effectiveness, as it is cheaper to produce than materials like glass or metal. Its lightweight nature helps reduce shipping costs and fuel consumption. Plastics are also durable, offering strong protection for goods. Their versatility allows them to be shaped into a variety of forms, catering to multiple industries. Additionally, plastics have excellent barrier properties, preserving the shelf life of products such as food and beverages by protecting them from moisture and oxygen. In September 2024, Pro-Pac Group received over AUD 6 million to enhance its facility for converting recycled feedstock into soft plastic products, enabling the production of up to 11,000 tonnes of soft plastic packaging annually, with 30% recycled content.

Opportunities in the Australian plastic packaging market are further boosted by recyclability, with materials like PET and HDPE being recyclable, which aids in waste reduction. The transparency of plastic packaging enhances product visibility, making items more attractive to consumers. Customisation is another key benefit, as plastics can be easily branded with colours, logos, and labels. Many plastic packaging solutions feature tamper-evident designs, ensuring product safety, especially in food and pharmaceuticals. Convenience is also a major advantage, with resealable pouches and squeeze bottles offering ease of use and improved customer satisfaction. In August 2023, Mondelez International, in collaboration with Amcor, invested in Licella, an Australian recycling technology firm, to promote a circular economy by converting waste plastics into high-quality oil, thereby reducing the carbon footprint.

Australia Plastic Packaging Market Growth

The demand of the Australia plastic packaging market is driven by innovation in the sector, including the development of biodegradable materials and smart packaging, which offer more sustainable and functional solutions. Plastics are highly resistant to various weather conditions, such as extreme temperatures, humidity, and UV exposure, making them ideal for Australia’s diverse climate. They also protect against contamination, ensuring products remain safe from external factors. Many plastic packaging options feature tamper-resistant properties, helping to maintain product integrity and building consumer trust. With increased sustainability initiatives, both the Australian government and industries are promoting the use of recyclable plastics to advance circular economy objectives. In August 2024, Naula secured over AUD 5 million to enhance sorting and processing capabilities for soft plastics, enabling the processing of up to 32,000 tonnes annually and producing high-quality materials for food-contact packaging.

The Australia plastic packaging market revenue is further boosted by plastics' ability to control light transmission, providing UV protection for sensitive products like beverages and cosmetics. Plastic packaging helps extend shelf life, reducing food waste and improving stock management for retailers. Automation is another benefit, as plastic packaging can be seamlessly integrated into production lines to increase efficiency. The lightweight nature of plastics improves supply chain efficiency by reducing storage space and transportation costs. Additionally, the growing demand in emerging sectors such as e-commerce and pharmaceuticals ensure that plastic packaging remains a crucial element in Australia’s expanding industries. In June 2024, Colgate-Palmolive launched its Palmolive personal care product range in 100% recycled plastic bottles across Australia and New Zealand, aiming to eliminate over 1,900 tonnes of virgin plastic annually and demonstrating a strong commitment to a circular plastics economy.

Australia Plastic Packaging Market Insights

• The Australian Packaging Covenant Organisation estimates that approximately 6.74 million tonnes of packaging were introduced to the market in Australia during the 2020–21 period.
• Industry reports indicate that paper and paperboard packaging accounted for roughly half (50.3%), followed by glass packaging (19.0%), plastic packaging (17.5%), wood packaging (9.5%), and metal packaging (3.8%).
• Under the Australian Packaging Covenant Organisation's target, 70% of plastic packaging is expected to be recycled or composted by 2025.
• The plastic packaging market in Western Australia is forecasted to experience substantial growth, with a projected compound annual growth rate (CAGR) of 14.6% from 2024 to 2032.
• In 2023, the feed additives market share in the Australian Capital Territory region was recorded at 2.0%.

Industry News

September 2024

CSIRO and Murdoch University introduced the Bioplastics Innovation Hub, a USD 8 million project aimed at creating 100% compostable plastic packaging. The initiative seeks to tackle plastic waste by developing bioplastics from waste products generated by the food industry.

April 2024

Amcor introduced a one-litre polyethylene terephthalate (PET) bottle made entirely from 100% post-consumer recycled materials, specifically for carbonated soft drinks. This innovative packaging solution contributes to sustainability objectives by reducing the need for virgin plastics in Australia's beverage industry.

Australia Plastic Packaging Market Drivers

Increasing Demand for Sustainable Packaging

A key trend of the Australia plastic packaging market is the rising demand for sustainable and eco-friendly solutions. Both consumers and businesses are becoming more environmentally aware, advocating for the adoption of recyclable, biodegradable, and reduced plastic usage. This shift is supported by government regulations focused on reducing plastic waste and promoting the use of recycled content in packaging. As a result, manufacturers are exploring alternatives like compostable plastics and post-consumer recycled (PCR) materials to meet sustainability targets while ensuring product protection and quality. In March 2024, Coca-Cola Australia launched its innovative PlantBottle, made with 30% plant-based materials, aiming to reduce carbon footprints and encourage recycling, in line with consumer demand for environmentally friendly products while maintaining high packaging standards.

Innovation in Smart Packaging

Smart packaging is becoming increasingly popular in the Australia plastic packaging market, driven by technological advancements. Features such as QR codes, RFID tags, and sensor-based packaging allow consumers and businesses to track products, monitor freshness, and ensure safety. Smart packaging enhances consumer engagement by providing additional information, such as product origin and expiry dates, which is especially useful in sectors like food, beverages, and pharmaceuticals. Moreover, the integration of NFC (Near Field Communication) technology for easy product scanning is gaining traction, offering a more interactive experience for consumers. In March 2024, Coca-Cola Australia introduced its PlantBottle, made from 30% plant-based materials, as part of its efforts to reduce carbon footprints and promote recycling, meeting consumer demand for sustainable, high-quality packaging.

Opportunities in the Australia Plastic Packaging Market

Increase in E-Commerce Packaging Demand

The growth of the Australia plastic packaging market is driven by the rapid expansion of e-commerce, creating a rising demand for packaging solutions that are both protective and efficient for online shopping. Plastic packaging solutions, especially for items like electronics, cosmetics, and food, are evolving to address the challenges of shipping and delivery. Packaging is being developed to be more secure, compact, and capable of withstanding long-distance transportation. The rise of direct-to-consumer business models has driven innovation in packaging, providing not only enhanced protection for products but also opportunities for branding and customisation. This trend is driving the demand for plastic packaging to support the growing e-commerce sector. In May 2024, PackTech launched a range of custom e-commerce packaging solutions designed to improve product protection during shipping, catering to the increasing demand for secure and sustainable packaging as online shopping continues to rise in Australia.

Market Restraints

The Australia plastic packaging market faces several restraints. Environmental concerns about plastic waste have led to growing pressure from consumers, governments, and environmental groups for sustainable practices. Regulatory measures, like bans on single-use plastics, increase costs for businesses and limit plastic use. Additionally, the country struggles with insufficient recycling infrastructure and high recycling costs, hindering the industry's ability to meet sustainability goals.

Consumer reluctance to accept alternative materials, such as biodegradable plastics, further slows the transition. Supply chain disruptions have increased production costs and caused delays. Negative public perception of plastic packaging, driven by pollution concerns, also limits market growth and drives demand for alternatives.

Australia Plastic Packaging Industry Segmentation

“Australia Plastic Packaging Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Packing Type

• Rigid
• Flexible

Market Breakup by Material Type

• Polyethene (PE)
• Ethylene Vinyl Alcohol (EVOH)
• Bi-orientated Polypropylene (BOPP)
• Cast Polypropylene (CPP)
• Polyvinyl Chloride (PVC)
• Others

Market Breakup by Product

• Bottles and Jars
• Tub
• Cup Bowls and Trays
• Pouches
• Others

Market Breakup by Technology

• Extrusion
• Blow Molding
• Thermoforming
• Injection Molding 
• Others

Market Breakup by End Use

• Healthcare Technology
• Food
• Cosmetics and Personal Care
• Beverage
• Others

Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• Australian Capital Territory
• Western Australia
• Others

Australia Plastic Packaging Market Share

By Packing Type Insights

According to the Australia plastic packaging market analysis, rigid plastic packaging leads the market due to its durability and excellent product protection, ensuring safety during transportation and storage. This segment is projected to grow at a CAGR of 4.3% from 2024 to 2032. It is lightweight, shatter-resistant, and often recyclable, making it a preferred option for industries such as food and beverages, pharmaceuticals, and consumer goods. In January 2024, Amcor introduced a new range of recyclable rigid containers designed for food packaging. These containers aim to boost sustainability while maintaining product integrity, meeting the rising demand for eco-friendly packaging solutions in Australia's food sector.

The demand for the Australia plastic packaging market is further driven by flexible plastic packaging, which is lightweight and versatile, allowing for efficient material and space use. It offers excellent barrier properties that extend shelf life and preserve freshness while reducing waste and transportation costs, making it ideal for the food industry and e-commerce applications. In May 2024, Sealed Air launched an eco-friendly version of its bubble wrap made from recycled materials. This flexible packaging solution provides superior protection during shipping while reducing environmental impact in Australia’s logistics sector.

By Technology Analysis

According to the Australia plastic packaging market report, the market is dominated by thermoforming, which offers design flexibility, allowing manufacturers to create customised packaging shapes that improve product visibility. It is cost-effective due to lower material costs and quick production times, while also providing excellent product protection and sustainability options through recyclable materials. In February 2024, Viking Food Solutions launched a new range of eco-friendly thermoformed packaging made from recycled materials. This initiative aims to reduce environmental impact while ensuring product safety and freshness, in response to the growing demand for sustainable packaging in Australia.

The demand for the Australia plastic packaging market is further driven by injection moulding, which ensures high precision and consistency in manufacturing, enabling complex designs and shapes that enhance branding. It is suitable for high-volume production runs, offering cost efficiency and durability, making it ideal for various applications across multiple industries. In March 2024, Visy Industries announced an expansion of its injection moulding capabilities with new machinery that boosts production efficiency and reduces energy consumption. This enhancement supports the rising demand for high-quality plastic packaging across various sectors in Australia.

By End Use Insights

The growth of the Australia plastic packaging market is driven by advancements in healthcare technology, which enhance safety, efficiency, and sustainability. This segment is projected to grow at a CAGR of 4.4% from 2024 to 2032. Innovations such as biodegradable materials and smart packaging improve patient care, reduce waste, and ensure compliance with strict health regulations, ultimately resulting in better health outcomes and environmental responsibility in Australia. In January 2024, Ecopha Biotech launched a new range of biodegradable plastic packaging for healthcare applications, using polyhydroxyalkanoates (PHAs). This solution aims to minimise environmental impact while meeting the safety and performance standards required for medical use.

The demand for the Australia plastic packaging market is also rising within the cosmetics and personal care sector, where innovative packaging enhances both product appeal and functionality. Sustainable packaging options reduce environmental impact while preserving product integrity, with added convenience features such as pump dispensers and travel-friendly designs that cater to consumer preferences. According to the International Trade Administration, Australia’s cosmetics industry is valued at approximately USD 3.5 billion, further driving the demand for packaging solutions that combine functionality and sustainability.

Australia Plastic Packaging Market Regional Insights

New South Wales Plastic Packaging Market Regional Insights

The plastic packaging market in New South Wales benefits from a robust food and beverage sector, which drives the demand for innovative and sustainable packaging solutions. This growth supports local manufacturing and aligns with consumer preferences for quality and convenience. In 2021, New South Wales’ food and beverage industry generated over AUD 21 billion in revenue, representing a significant portion of the state’s manufacturing sector, according to government data.

Queensland Plastic Packaging Market Trends

According to the Australia plastic packaging industry analysis, the plastic packaging market in Queensland is shaped by government initiatives focused on reducing plastic waste. Emphasising recycling and sustainability, these efforts foster innovation in packaging solutions and encourage environmental responsibility. In 2022, Queensland’s pharmaceutical manufacturing sector contributed around AUD 2.4 billion to the state’s economy, reflecting strong growth in the production of medicines and healthcare products, as reported by government statistics.

Western Australia Plastic Packaging Market Dynamics

The plastic packaging market in Western Australia is supported by a growing focus on sustainability and circular economy principles. It is anticipated to grow at a CAGR of 4.4% from 2024 to 2032. Investment in recycling infrastructure benefits local businesses while addressing environmental concerns related to plastic waste. In 2023, Western Australia produced approximately 600,000 tonnes of plastic packaging, with ongoing efforts to enhance recycling rates as part of the state’s Waste Management Strategy, according to the Western Australia Department of Water and Environmental Regulation.

Competitive Landscape

The Australia plastic packaging market key players provide a diverse range of packaging products and services across various industries, including food and beverage, healthcare, retail, and industrial sectors. These companies offer both primary and secondary packaging solutions, such as paperboard, corrugated, flexible, and glass materials. They are committed to sustainability, focusing on eco-friendly packaging options like recyclable, biodegradable, and reusable solutions. 

Key Industry Players

Orora Packaging Australia Pty Ltd: Established in 2013, Orora Packaging Australia Pty Ltd is a leading packaging company headquartered in Melbourne, Australia. The company offers a wide range of sustainable packaging solutions across industries, including food, beverage, and industrial sectors. Orora focuses on providing innovative and environmentally friendly packaging products.

Filton Packaging, Fine Pack Pty Ltd: Founded in 1979, Filton Packaging, Fine Pack Pty Ltd is an Australian packaging manufacturer based in Melbourne. The company specialises in producing flexible packaging solutions, such as pouches and bags, for the food and beverage, healthcare, and industrial markets. Filton is committed to delivering high-quality and sustainable packaging options.

Gravure Packaging Limited: Established in 1996, Gravure Packaging Limited is a UK-based manufacturer of high-quality printed flexible packaging. The company’s headquarters are in Northamptonshire, England. Gravure Packaging specialises in rotogravure printing and offers a range of packaging solutions for sectors like food, confectionery, and pharmaceuticals, prioritising innovation, and sustainability.

Pro-Pac Group Pty Limited: Founded in 1974, Pro-Pac Group Pty Limited is an Australian packaging company headquartered in Sydney. It provides a wide array of packaging products and services, ranging from flexible packaging to custom packaging solutions. Pro-Pac focuses on customer-centric services and innovation to meet the diverse needs of various industries.

Other key players in the Australia plastic packaging market report are A&M Packaging, Caspak Products Pty Ltd., Visy Industries Australia Pty Ltd., Cospak Pty Ltd., and Plasmo Pty. Ltd., among others.

Recent Developments

February 2024

Flexible Packaging Solutions unveiled a new range of biodegradable films designed to minimise environmental impact while preserving product quality in food packaging applications, catering to Australia's expanding sustainable packaging market.

December 2023

Econopak launched a new range of recyclable flexible packaging solutions for the food industry, aimed at reducing plastic waste while ensuring product safety and extending the shelf life of various consumables sold in Australia.