Australia Plastic Packaging - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026 - 2031)

Australia Plastic Packaging Market Analysis

Australia plastic packaging market size in 2026 is estimated at USD 2.91 billion, growing from 2025 value of USD 2.85 billion with 2031 projections showing USD 3.23 billion, growing at 2.11% CAGR over 2026-2031. This trajectory illustrates how e-commerce, food-grade recycling investments, and container deposit schemes work together to support volume growth while alleviating regulatory pressure. Investments worth more than USD 100 million through the Recycling Modernization Fund have begun filling gaps in soft-plastic collection and are catalyzing the development of new infrastructure that can supply food-grade rPET. Circular-economy incentives, together with rising consumer preference for refillable and concentrated product formats, are reshaping material choices toward polyethylene terephthalate and advanced mono-material laminates. Meanwhile, digital printing enables converters to profitably serve small and mid-sized brands, intensifying competition while also broadening the customer base for tailored, flexible formats.

Australia Plastic Packaging Market Trends and Insights

Rising Demand for Packaging from the Food and Beverage Sector

Food and beverage producers have intensified their packaging use, growing packaging intensity 15% since 2022 as urban consumers demand extended shelf life and convenience. New investments worth USD 105.5 million by Coca-Cola Europacific Partners mirror sustained local demand for sports drinks and teas that need high-barrier containers. Food safety rules under the Australia New Zealand Food Standards Code favor plastic solutions that minimize contamination risk, offsetting environmental scrutiny. Export-oriented processors increasingly adopt modified-atmosphere packaging to enter Asian markets, pushing adoption of high-barrier pouches and trays. Combined, these trends keep Australia plastic packaging market on a steady growth path.

E-commerce and Home-Delivery Boom Fuelling Lightweight, Protective Formats

E-commerce volumes climbed 35% in 2024, driving demand for right-sized flexible packs that lower dimensional-weight freight charges while protecting contents during longer parcel journeys. Amcor’s USD 45 million stake expansion in ePac delivers digital printing capacity that slashes lead times for small Australian brands, enabling personalized designs at industrial scale. Automated fulfillment centers now specify engineered films with consistent tensile strength, steering converters toward mono-material laminates. These technology and logistics shifts strengthen the Australia plastic packaging market by opening high-margin niches beyond commodity films.

Heightened Environmental Activism and Consumer Backlash Against Single-Use Plastics

Public sentiment shifted sharply after the REDcycle scheme collapsed in 2022, spurring skepticism toward recyclability claims. Retailers such as Coles have pivoted to paper-based pouches to pre-empt social media backlash over perceived greenwashing. Large brands face mounting pressure to document full material flows, sometimes sacrificing optimal shelf life to satisfy consumer optics. Zero-waste stores remain niche but wield outsized influence on public discourse, forcing mainstream companies to trial refill stations and concentrated product formats. This cautious environment can slow decision-making and temper volume growth in the Australian plastic packaging market.

Other drivers and restraints analyzed in the detailed report include:

1. Regulatory Push for Eco-Friendly and Recyclable Plastic Packaging Solutions
2. Expansion of Domestic Advanced Recycling Capacity Enabling Food-Grade rPET Supply
3. Escalating Bans and Levies on Problematic Packaging Formats Across States

For complete list of drivers and restraints, kindly check the Table Of Contents.

Segment Analysis

Polyethylene retained a 39.05% share of the Australian plastic packaging market in 2025, thanks to its broad applicability across films, bottles, and closures. Growth, however, is decelerating as regulators and brand owners pivot toward resins with clearer closed-loop pathways. In contrast, polyethylene terephthalate posted a 4.51% CAGR outlook because container-deposit schemes nurture a clean stream of rPET suitable for food-grade bottles. Polypropylene is experiencing steady uptake in ready-meal trays that require microwave tolerance, although its recycling pathways remain less mature. Recyclability labeling under APCO increasingly favors PET and HDPE, eroding long-term polyethylene dominance in Australia plastic packaging market.

Polyethylene terephthalate’s share rise reflects investment in advanced depolymerization facilities that can turn mixed-colored flakes into resin equivalent to virgin material. Brands that use clear bottles gain higher recycling yields, creating a feedback loop that further boosts PET demand. Meanwhile, bioplastics carve out premium niches where claims of compostability justify cost premiums. The shift underscores how sustainability metrics, more than classical cost-performance trade-offs, now steer material decisions in Australia plastic packaging market.

Flexible formats accounted for 55.28% of Australia plastic packaging market size in 2025, and their 3.81% CAGR exceeds that of rigid containers as online grocery grows. Lightweight pouches cut logistics emissions and enable tamper-evident seals that withstand parcel handling. Digital printing in short runs allows regional brands to refresh graphics for promotional campaigns without holding excess inventory. Rigid PET bottles still dominate carbonated beverages where gas retention is critical, but face margin pressure as deposit-scheme fees rise.

Converters rushing to qualify recyclable mono-material laminates are narrowing the recyclability gap between rigid and flexible formats. Companies that master the transition from multilayer foil barriers to high-barrier EVOH or all-polyethylene structures are well-positioned to capture market share. As a result, flexible packaging’s value proposition extends beyond freight savings to include end-of-life compliance, reinforcing its lead in the Australian plastic packaging market.

The Australia Plastic Packaging Market Report is Segmented by Material Type (Polyethylene, Polypropylene, and More), Packaging Type (Flexible Plastic Packaging, and Rigid Plastic Packaging), Product Form (Bottles and Jars, and More), End-User Industry (Food, Beverage, Pharmaceuticals and Healthcare, and More), Manufacturing Process (Extrusion, Injection Molding, and More). The Market Forecasts are Provided in Terms of Value (USD).

List of Companies Covered in this Report:

1. Amcor plc
2. Visy Industries Australia Pty Ltd
3. Pact Group Holdings Ltd
4. Orora Packaging Australia Pty Ltd
5. Pro-Pac Packaging Ltd
6. Filton Packaging Pty Ltd
7. Flexible Packaging Solutions Pty Ltd
8. Gravure Packaging Ltd
9. Econopak Flexible Packaging
10. A&M Packaging Pty Ltd
11. Caspak Products Pty Ltd
12. Synergy Packaging Pty Ltd
13. Cospak Pty Ltd
14. Vacupack Pty Ltd
15. Plasmo Pty Ltd
16. Integrated Packaging Group Pty Ltd
17. SECOS Group Limited
18. iQRenew Pty Ltd
19. Circular Plastics Australia Pty Ltd

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support