Market Size of Australia Retail Bags Industry
Study Period | 2019 - 2029 |
Base Year For Estimation | 2023 |
Market Size (2024) | USD 1.51 Billion |
Market Size (2029) | USD 1.91 Billion |
CAGR (2024 - 2029) | 4.83 % |
Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
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Australia Retail Bags Market Analysis
The Australia Retail Bags Market size is estimated at USD 1.51 billion in 2024, and is expected to reach USD 1.91 billion by 2029, growing at a CAGR of 4.83% during the forecast period (2024-2029).
Retail bags can be made from paper, natural fabric, and plastic (HDPE, LDPE, PP, rPET, etc.) Due to rising customer and brand demand for eco-friendly goods, paper and natural fabric are being used more frequently as packaging.
- Australia's consumer demand for retail bags has significantly been fueled by the quickly rising number of shopping centers, supermarkets, and developed retail sectors. Owing to expanding retail sectors connected to customers' increased preference for eco-friendly packaging, the market for retail bags is expanding dramatically. Bags of different formats have assisted consumers in shopping for goods for the past few decades. Consumers often choose single-use retail bags in supermarkets in developed countries, which are considered major plastic use areas.
- Retail stores have also opted for unit bags for small purchases and offer their customers paper and natural fiber bags. The increasing online expenditure by Australians on homeware and appliances, department stores, grocery and liquor, personal and recreational, fashion, and takeaway food is expected to support market demand. According to the Australian Bureau of Statistics, the homeware and appliances category accounted for about 21.3% whereas, department stores, grocery, liquor, fashion, and takeaway food accounted for 17.10%, 15.60%, 10.70%, and 7.90%, respectively.
- Moreover, the market is supported by the increased spending on clothing, footwear, and personal accessory, as these sectors also utilize unit packaging for product packing. As per the Australian Bureau of Statistics, the annual revenue generated from the above products reached AUD 34.73 billion (~USD 23.21 billion) in 2022 from AUD 28.1 billion (~USD 18.8 billion) the year before.
- Factors such as the region's rising income levels and living standards have increased the demand for retail bags. The advent of biodegradable bags (paper) has dramatically aided businesses in meeting the need for environment-friendly products. Furthermore, companies are incorporating recyclable (recyclable pulp) materials to lower their carbon footprint by manufacturing unit-size retail bags, such as paper and natural fibers.
- This price volatility could potentially impact manufacturers of retail bags who rely on mechanical wood pulp as a raw material. If the price of mechanical wood pulp increases, it could lead to a rise in the cost of production for manufacturers of retail bags. As a result, these manufacturers may have to increase the prices of their bags to maintain their profit margins, which could potentially impact demand, causing them to look for other solutions/substitutes, such as cotton bags, jute bags, and hemp bags.
- Since the pandemic and Post COVID-19, online shopping has become a new trend, be it clothing, groceries, or personal care products. In line with the same, according to ABC Australia, As of the third quarter of 2023, grocery retailer Woolworths held the largest share of Australia's online grocery retail spend, with a share of almost 45 percent. Supermarket rival, the Coles Group, came in second, with a share of approximately 29 percent.
Australia Retail Bags Industry Segmentation
Retail carry bags are utilized in the retail industry to help consumers. The introduction of reusable bags into the retail carry bags industry has proliferated. Retailers favor using plastic carry bags for their useful properties, such as being easy to use, economical, and store packaging format. The study defines the revenues generated by retail bag sales made from different materials, including paper and natural fabric and plastics, by various vendors. The market volume consists of the consumption of retail bags by consumers. The analysis is based on the market insights captured through secondary research and the primaries. It also covers the major factors impacting the growth of the retail bags market in terms of drivers and restraints.
The Australian retail bags market is segmented by material (paper and natural fabric and plastic (HDPE, LDPE, PP, rPET, etc.)) and end-user industry (foodservice, grocery, industrial, hospitality, and other end-user Industries). The report offers market forecasts and size in value (USD) for all the above segments.
By Material | |
Paper and Natural Fabric | |
Plastic (HDPE, LDPE, PP, rPET, etc.) |
By End-user Industry | |
Foodservice | |
Grocery | |
Industrial | |
Hospitality | |
Other End-user Industries |
Australia Retail Bags Market Size Summary
The Australian retail bags market is experiencing significant growth, driven by the increasing consumer preference for eco-friendly packaging solutions. This shift is largely due to the rising number of shopping centers, supermarkets, and a developed retail sector, which have fueled demand for various types of retail bags, including paper and natural fabric options. The market is further supported by the growing trend of online shopping, with substantial expenditure on homeware, appliances, and other consumer goods. The food service industry also plays a crucial role in this growth, as the expanding number of cafes and restaurants boosts the demand for sustainable packaging solutions. The Australian government's commitment to sustainable packaging, including targets for recyclable and compostable materials, aligns with the market's trajectory towards environmentally friendly options.
The market landscape is characterized by a fragmented structure with key players like Detmold Group, United Paper, and others leading the charge in sustainable packaging innovations. The COVID-19 pandemic has accelerated the demand for flexible packaging, particularly in the food and e-commerce sectors, prompting manufacturers to adapt their production capabilities. Recent initiatives, such as Woolworths' phase-out of reusable plastic bags and the introduction of recyclable paper bags by Visy, highlight the industry's shift towards reducing single-use plastics. These developments, coupled with strategic investments in sustainable retail solutions, underscore the dynamic nature of the Australian retail bags market and its potential for continued expansion.
Australia Retail Bags Market Size - Table of Contents
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1. MARKET INSIGHTS
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1.1 Market Overview
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1.2 Industry Attractiveness - Porter's Five Forces Analysis
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1.2.1 Bargaining Power of Suppliers
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1.2.2 Bargaining Power of Buyers
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1.2.3 Threat of New Entrants
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1.2.4 Threat of Substitute
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1.2.5 Intensity of Competitive Rivalry
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1.3 Industry Value Chain Analysis
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2. MARKET SEGMENTATION
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2.1 By Material
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2.1.1 Paper and Natural Fabric
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2.1.2 Plastic (HDPE, LDPE, PP, rPET, etc.)
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2.2 By End-user Industry
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2.2.1 Foodservice
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2.2.2 Grocery
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2.2.3 Industrial
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2.2.4 Hospitality
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2.2.5 Other End-user Industries
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Australia Retail Bags Market Size FAQs
How big is the Australia Retail Bags Market?
The Australia Retail Bags Market size is expected to reach USD 1.51 billion in 2024 and grow at a CAGR of 4.83% to reach USD 1.91 billion by 2029.
What is the current Australia Retail Bags Market size?
In 2024, the Australia Retail Bags Market size is expected to reach USD 1.51 billion.