Market Trends of Australia Retail Bags Industry
Paper and Natural Fabric to Witness Significant Growth
- Paper and paperboard packaging accounts for more than half a portion of the overall packaging consumed in Australia, as paper packaging showcase higher recovery and recycling rates. According to the Australian Packaging Covenant Organization (APCO), the paper and paperboard packaging consumption in 2019 was 55% of the overall packaging consumed. The increasing paper packaging consumption is projected to fuel the demand for retail paper bags.
- Australia's 2025 national packaging target supported by the Australian industry and government includes 100% reusable, recyclable, or compostable packaging, 70% of plastic packaging being recycled or composted, 50% of average recycled content contained in the packaging, and the phase-out of problematic and unnecessary single-use plastics packaging to deliver a new and sustainable approach to packaging in Australia. These packaging target drives the demand for paper and natural fabric retail bags as these bags are recyclable, compostable, or reusable.
- According to the Australian Bureau of Statistics 2023, the annual retail turnover amounted to approximately USD 31.78 billion in Western Australia. This marked an increase in annual retail turnover in the state from the previous year.The increased retail turnover positively impacts the paper and natural fabric retail bags market.
- The increasing retail turnover across the various states of Australia creates growth opportunities for retail packaging manufacturers, including retail bags. The increased turnover indicates increased sales which result in demand for packaging solution. This supplements the sales of paper and natural fabric retail bags in Australia. The retail turnover in February 2023 increased compared to the retail turnover in February 2022 in different states of Australia. The retail turnover in New South Wales in February 2022 was USD 9.201 billion, which increased to USD 9.8186 billion in February 2023. The increased retail turnover positively impacts the paper and natural fabric retail bags market.
Understand The Key Trends Shaping This Market
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Foodservice Industry to Hold Major Market Share
- The food service industry in Australia is dynamic and evolving with the changing consumer lifestyle. The industry includes fast-food outlets, cafes, caterers, full-service restaurants, and other places which prepare, serve, and sell food to consumers for a profit. This industry contributes more to the Australian economy than food retailing. Australian propensity to eat out is high in the world. The expanding food service industry in Australia is expected to fuel the demand for sustainable packaging solutions, including paper retail bags.
- According to the US Department of Agriculture, the value of the Australian consumer food service sector was AUD 54 billion (USD 41 billion) in 2021. Australia's institutional food service industry (aged care, hospitals, etc.) continues to expand due to an aging population as more senior citizens rely on institutional food services. This expanding sector presents growth opportunities for retail bag manufacturers in Australia.
- The growing trend can be observed in terms of turnover compared to the previous year in each state of Australia. The rising urban population and the shifting trend toward outside eating bolstered the growth of cafes and restaurants, which resulted in an increased number of cafes and restaurants in Australia.
- The number of cafés and restaurants in Australia is growing, further fueling the demand for retail bags. Over 51.9 thousand cafés and restaurants were open across Australia as of the end of the fiscal year 2022, according to the Australian Bureau of Statistics. The surge in the number of cafes and restaurants in Australia boosts the demand for retail bags to deliver food and beverage products to the consumer.
- The fast-food chains in Australia, such as McDonald's, KFC, Subway, and others, focus on sustainable takeaway or delivery packaging solutions to achieve sustainability goals and cater to government regulations. Adopting eco-friendly packaging solutions by fast-food chains in Australia fuels the demand for retail paper bags. According to ScrapeHero, as of January 2024, New South Wales boasted the largest number of McDonald's outlets in Australia, housing 331 stores. In stark contrast, Tasmania had a mere 16 McDonald's establishments during the same period. The total tally of McDonald's stores operational in Australia in 2024 stood at 1,039.
