Australia Contract Packaging Market Report and Forecast 2025-2034

Australia Contract Packaging Market Outlook

The Australia contract packaging market size is expected to grow at a CAGR of 9.3% between 2024 and 2032.

Key Takeaways

• Australian environment ministers aim to reduce toxic chemicals in food packaging, develop packaging guidelines, and harmonise recycling schemes.

• Rising sales in the supermarket and food retail industry, reaching over AUD 132 billion in 2022, drive demand for fast-moving consumer goods (FMCG). This growth necessitates efficient packaging solutions, boosting the contract packaging market, with annual revenue in supermarkets and grocery stores increasing from AUD 125.85 billion in 2021 to AUD 132.75 billion in 2022.

Contract packaging services in Australia have experienced notable growth, driven by manufacturing firms' shifting preference towards cost optimisation and focusing on core competencies. Outsourcing packaging tasks to contract packagers can lead to a 7-10% reduction in operational costs, attributed to decreased machine maintenance and labour expenses. Amidst COVID-19 disruptions, online retail sales surged, contributing to the Australia contract packaging market growth, especially in the food, beverage, and pharmaceutical sectors.

The evolving packaging regulations, particularly in food and beverage, necessitate rigorous quality checks, prompting more manufacturers to opt for contract packaging services to ensure compliance. The burgeoning e-commerce industry in Australia is a significant driver for contract packaging, offering opportunities for companies to gain control over the value chain. Seasonal demand fluctuations in FMCG products highlight the scalability benefits of contract packaging, enabling businesses to adapt without heavy investments in infrastructure or labour.

Additionally, the emphasis on sustainability and eco-friendly packaging solutions is propelling the Australia contract packaging market development, with contract packagers responding to the increasing consumer demand for environmentally conscious options. The pharmaceutical sector's focus on serialisation and traceability is creating demand for contract packaging firms with expertise in pharmaceutical packaging compliance. Similarly, the expansion of e-commerce necessitates specialised packaging solutions tailored for online retail, further driving demand for contract packaging services. Overall, the contract packaging industry in Australia is poised for growth, fuelled by various factors including industry diversification, sustainability concerns, and evolving consumer expectations.

Market Segmentation

Australia Contract Packaging Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Market Breakup by Packaging Type

• Primary

• Secondary

• Tertiary

Market Breakup by Material

• Plastic

• Glass

• Metal

• Paper & Paperboard

Market Breakup by End-Use

• Pharmaceutical

• Personal Care

• Food and Beverage

• Electronics

• Home Products and Fabrics

• Others

Market Breakup by Region

• New South Wales

• Victoria

• Queensland

• Western Australia

• Australian Capital Territory

• Others

Competitive Landscape

Through joint ventures and acquisitions, the companies are constantly extending their geographic proximity.

• Assemco Outsourcing Melbourne Australia

• Ultra Pak (Australia) Pty Ltd.

• Chemical Solutions Pty Ltd

• Probiotec Limited

• Outsource Packaging

• Brilliant Group

• CMTP

• Fantastick Label Company

• Packcentre Marketing Services Pty Ltd.

• Contract Packaging Systems Pty. Ltd

• A&M Packaging

• Others

Key Highlights of the Report