Australia Flexible Packaging Market - Forecasts from 2024 to 2029

Australia Flexible Packaging Market - Forecasts from 2024 to 2029

The Australian flexible packaging market is expected to grow at a CAGR of 6.67%, reaching a market size of US$3.643 billion in 2029 from US$2.145 billion in 2024.

Australia's population increased significantly over the previous decade. Due to the high portability made possible by the lightweight nature of plastics, it is projected to drive the demand for more consumables, including drinks, packaged meals, packaged drinking water, and convenience items like oven and microwave-safe packaging. Plastic packaging medium is preferred over other options. Additionally, the nation set its lofty 2025 National Packaging Targets. The goals establish a new, sustainable route for how businesses in the nation handle their packaging. To provide a fresh and sustainable approach to packaging, the Australian government and industry also support the 2025 National Packaging Targets. These goals will apply to all packaging produced, used, and sold nationwide. The government charges the Australian Packaging Covenant Organization (APCO) to help carry out the delivery of these 2025 Targets. The Australian government responded by realizing that by 2025, 100% sustainable packaging practices would be in line with the Circular Economy model.

Australia Flexible Packaging Market Drivers:

Growing demand from the food industry

The demand for single-serve and portable food packs is the main factor propelling Australia's plastic packaging market growth due to lifestyle changes. Furthermore, Australia is being portrayed as a major food exporter due to the rise in bilateral trade agreements, investments in better logistics, and cross-border e-commerce. In addition, producers have been raising their output to meet domestic and global demand. It will immediately increase the amount of plastic packaging used in the nation. In Australia, the demand for convenient food is rising because consumers want convenience and health while packaging, increasing packaging plastics usage.
Rising demand for paper packaging

Due to the increased demand for eco-friendly and sustainable packaging, paper forms the largest segment of the Australian market for flexible packaging. Many Australian companies are realizing the benefits of using flexible packages. In the food and beverage sector, for instance, paper packaging is now preferred because it is reliable and durable, as well as environment-friendly.
Increased Eco-friendly Packaging

The nation’s mounting preoccupations with recyclable materials are motivating producers of packages and their consumers to bring new products into the market. Innovations such as bioplastics and fiber-based paper packaging are expanding because of the way the materials combine to make recycling easier, more affordable, and quicker to occur in landfills. Moreover, Amcor introduced Amlite Ultra Recyclable, the industry's first packaging product, which is composed of environmentally friendly high-barrier polyolefin film. Various food, household, personal care, and pharmaceutical products can be easily packaged in this recyclable laminate. Recyclability aims to cut a pack's carbon footprint by as much as 64%.

Australia Flexible Packaging Market Restraint:

Recycling challenges with Australia's flexible packaging products

Flexible pouches and other products require numerous processes to separate, making recycling them labour-intensive and unprofitable. Packaging materials include different layers of film, such as foil and paper. Moreover, blending various polymers is possible but this will need capital investment in technology and machinery.

Australia Flexible Packaging Market Developments:

In July 2022, Woolworths Group and Pact, two Australian companies, collaborated to advance circular packaging. As a result, up to 18,000 tonnes of recycled plastic can now be found annually in Woolworths brand packaging. including the Albury PET recycling facility that opened recently. The proposed partnership aims to position Pact Woolworths as the top strategic partner by volume in the retailer's efforts to reduce the amount of new plastic used in its brand packaging by 50% by 2024. This will give the retailer a significant boost in delivering more environmentally friendly packaging across its brand range.
In July 2022, as part of the ANZPAC Plastics Pact, APCO released a new paper on achieving the local plastic objectives by 2025. This is done by reconceptualizing, generating, and leveraging alternative (reusing) delivery approaches. To develop ANZPAC, APCO collaborated closely with WRAP UK and the Ellen MacArthur Foundation (the Foundation). The two organizations, who have already launched multiple Pacts, have contributed a wealth of experience to the process of development and assistance when interacting with regional stakeholders
In March 2022, the Australian government's Department of Foreign Affairs and Trade started working on the Plastics Innovation Hub Indonesia, partnering with the Commonwealth Scientific and Industrial Research Organization (CSIRO), the country’s national science agency. With the help of the existing ecosystem, the Hub hopes to increase innovation capacity and jointly identify problems that have the potential to have significant, long-lasting effects. Through the virtual Hub, Australian, Indonesian, and international partners can form a collaborative innovation ecosystem. utilizing a range of perspectives and levels of experience to spark innovative ideas. The Hub is dedicated to designing and implementing deep technology solutions in underserved or emerging fields. It will open up new avenues for internationally renowned research to expand and have an impact at the systems level in Indonesia. Initially, the Hub will focus on three problem areas:

Key Market Segmentation:

The Australian flexible packaging Market is segmented and analyzed as below:

By Packaging Material

Paper
Aluminium Foil
BOPP Film
Polyethylene
PET
Others

By Application

Food Packaging
Processed food products
Bakery Products
Pet Food Products
Fruits & Vegetables
Others
Beverage Packaging
Bottles
Pouches
Others
Cosmetics & Toiletries
Pharmaceutical & Healthcare
Others