Market Trends of Australia Paper Packaging Industry
This section covers the major market trends shaping the Australia Paper Packaging Market according to our research experts:
Rise in Sustainable Packaging while Making Use of Recycling and Biodegradable Paper
- In Australia, consumers prefer recyclability and biodegradability as essential packaging parameters over reusability. This underlines the growing concerns of consumers about the environmental impact of packaging waste in the future. With advanced technologies attracting high investments, such as digitally printed paperboards, product distributors are increasingly adopting the following technology due to the solution offering interactive and colorful designs for consumers to notice.
- Recycled paper and paperboard products remain essential in the global economy, primarily as packaging and industrial paper grades. The most significant product manufactured from recycled paper and paperboard is corrugated cartons. Approximately half of all corrugated cartons are manufactured from recycled material.
- Further, the government of Australia has taken various steps to boost recycling. For instance, in 2022, the Australia Department of Agriculture, Water, and the Environment focused on phasing out several types of plastic packaging, such as non-compostable plastic packaging, loose fill and molded expanded polystyrene (EPS), and PVC packaging labels. This is all to reach the goal of having 100% of packaging be reusable, recyclable, or biodegradable by 2025.
- Corrugated packaging has become an important factor as a point-of-sale display in retail settings. This, along with the constant improvement of small flute and high-quality graphics boards, has made it possible for corrugated boxes to replace traditional folding cartons.
- Additionally, owing to the steps taken by the government to boost the recyclability of packaging materials such as paper and paperboard, the demand for paper-based packaging has increased in Australia. Moreover, online e-commerce companies also use recycled material to pack their products, complying with government norms. For instance, according to Australia Post, in 2021, 79% of respondents said they recycled cardboard boxes for packaging their online orders, and only 22% of respondents said they recycled plastic satchel packages.
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Folding Cartons Will have a Significant Share in Future
- Folding cartons are one of the most popular eco-friendly packaging solutions, owing to their ability to be produced in numerous sizes with a small footprint compared to other packaging options, making them feasible for use in various end-user industries. Also, as consumers continue to demand sustainable attributes in packaging, the recyclability of folding carton packaging may be highly beneficial to that format. With technical innovations in eco-friendly coatings, folding cartons may experience increased usage to package liquids, extending their use into new product lines.
- The food sector, healthcare industry, domestic care industry, and personal care business are among the ones that employ folding cartons most frequently. Also, the healthcare and pharmaceutical industries' need for easy-to-transport, biodegradable, and recyclable packaging for medicines and similar items is good for the demand for folding cartons.
- Also, manufacturers in the folding carton market increase the production of packaging solutions using solid whiteboard, which is strong, rigid, and accepts printing ink well. However, this material can be potentially expensive. Nevertheless, solid whiteboard folding cartons are extensively used for packaging books, cosmetics, and electronics, among other products.
- Additionally, advances in printed electronics technology are making smart packaging economical. The development and growing popularity of "smart" folding cartons and the availability of a variety of digital printing options will drive the future growth of the folding carton market. Also, smart folding cartons enable vendors to track the package throughout the delivery process. They provide customers with product information using QR codes or feature individualized designs and messages for customers.
- The growing demand for such cartons in e-commerce is expected to propel the demand for folding cartons in the forecast period. For instance, according to Australia Post, of the Australian e-commerce industry's year-over-year sales increase in 2021, the variety store e-commerce segment experienced growth of over 16% compared to the previous year. Other segments that experienced year-on-year growth of over 12 percent included the fashion and home and garden e-commerce segments.
