Market Trends of Australia Paper and Paperboard Packaging Industry
This section covers the major market trends shaping the Australia Paper & Paperboard Packaging Market according to our research experts:
Corrugated Boxes are Expected to Hold Significant Share
- Corrugated packaging has emerged as a critical driver of this market due to its evolution as a point-of-sale display in retail applications, coupled with continuous development in small flute and high-quality graphics board, which is enabling corrugated boxes to penetrate traditional folding carton applications. Corrugated box packaging is a useful and cost-effective solution to protect, preserve, and transport a wide range of cosmetic products. The corrugated box has the benefits of biodegradability, and recyclability, which have made it an essential part of the packaging industry.
- Australia is experiencing a surge in industrialization, providing substantial opportunities for main corrugated board market competitors. Corrugated boxes are used in numerous regional industries, such as food and beverage, electronics, and e-commerce. Corrugated boxes will be in more demand in the country as people become more aware of ecological and cost-effective packaging options.
- In addition, growing environmental awareness is projected to lead to increased demand for greener packaging options. Government attempts in Asutralian to restrict plastic packaging is also predicted to boost product demand. In accordance with this, the demand for electronic goods, automotive parts, home care, and beauty & personal care products from domestic and international markets is increasing the demand for corrugated boxes.
- Additionally, growing demand for online purchase is expected to fuel the demand for paper and paperboard packaging in Australia. For instance, according to Australia Post, New South Wales had the highest percentage of eCommerce purchases in the country, at 31.6%. The state with the next largest share of online purchases and the second largest state in terms of population was Victoria with 30%.
Understand The Key Trends Shaping This Market
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Increasing Growth of E-commerce Creating Demand for Various Paper and Paperboard Packaging Types
- In the global economy, recycled paper and paperboard products are essential, particularly packaging and industrial paper grades. Corrugated cartons are products made from recycled paper and paperboard. All corrugated cartons, around half of them, are made using recycled materials. Corrugated packaging has become a significant driver for point-of-sale displays in retail applications, allowing corrugated boxes to compete with traditional folding carton applications.
- Additionally, the e-commerce sector has become a prominent participant in recent years. Restaurants, various retailing industries, and well-known e-commerce enterprises have been employing corrugated board boxes as the primary packaging, and they rely on plastic wrapping for specific goods.
- For instance, as per the Australian Bureau of Statistics, sales in shops and online in April 2022 were USD 33.9 billion, with gains in the "other retailing" sector of 14.4% and improvements in cafés, restaurants, takeout services, clothing, and footwear of 14.7%. While food retailing increased by 6.5%, domestic products increased by 7.4%. The weakest growth in sales was seen in department shops (5.4%).
- According to Australia Post, the variety shop e-commerce segment grew by over 16 % in 2021 compared to the previous year. Other e-commerce areas that grew by more than 12% year over year (Y-O-Y) were fashion and home and garden, which drive the demand for paper and paperboard packaging in Australia. This is expected to support the demand for paper and paperboard packaging in Australia.
