Australia Flexible Packaging Market Size, Share Analysis and Forecast Report (2025-2034)

Australia Flexible Packaging Market Trends

The growth of the Australia flexible packaging market is driven by its support for sustainability, with the use of recyclable, biodegradable, and compostable materials. Flexible packaging’s lightweight design reduces production and transport costs, making it a cost-effective solution. Its enhanced barrier properties prolong product shelf life while lowering carbon footprints, offering an eco-friendly alternative for brands. In April 2023, Pact Group, a leading packaging manufacturer, introduced a new range of recyclable flexible packaging for the Australian market. Designed to meet sustainability targets, the packaging also offers improved barrier properties for food and beverage products, reinforcing the company’s commitment to circular economy practices.

Demand of Australia flexible packaging market is increasing, driven by consumer preferences for convenience, including resealable, portable, and easy-to-open packaging designs. Flexible packaging also allows for greater design flexibility, enabling brands to create attractive, functional solutions tailored to specific needs. Its lightweight structure improves space efficiency in storage and shipping, while continuous material innovations keep the market competitive and adaptable to shifting consumer preferences. In July 2023, Visy launched a compostable flexible packaging solution for the Australian food sector, supporting the transition to sustainable packaging, particularly for organic and fresh produce, and helping to reduce single-use plastic waste.

Australia Flexible Packaging Market Growth

The Australia flexible packaging market share is growing, as it uses fewer resources, leading to less material waste and increased efficiency. Its enhanced barrier properties protect products from environmental factors such as moisture and light, preserving product quality. Additionally, it meets stringent food safety standards, ensuring health and safety, while reducing shipping costs and energy consumption across various industries. In June 2024, Sealed Air launched a new flexible packaging solution for e-commerce businesses in Australia. Designed to improve product protection during transit, the packaging is recyclable and made from recycled materials, offering a sustainable alternative to traditional plastic packaging in the logistics sector.

The opportunities in the Australia flexible packaging market are expanding, as it generally requires less energy to produce than traditional packaging. This is further fuelled by strong consumer demand for eco-friendly alternatives. The lightweight design also reduces transportation emissions, and the ability to customise packaging allows brands to meet specific product requirements, enhancing market flexibility. In May 2024, Amcor introduced a new range of flexible packaging using 100% recycled content for stand-up pouches. This sustainable packaging solution aims to reduce carbon footprints and improve recycling efficiency across sectors such as food and personal care, solidifying Amcor’s role as a leader in sustainable packaging.

Australia Flexible Packaging Market Insights

• The Australian Packaging Covenant Organisation estimates that around 6.74 million tonnes of packaging were placed on the market in Australia during the 2020–21 period.
• According to industry reports, paper and paperboard packaging made up approximately half (50.3%), followed by glass packaging (19.0%), plastic packaging (17.5%), wood packaging (9.5%), and metal packaging (3.8%).
• According to the Australian Packaging Covenant Organisation’s target, 70% of plastic packaging should be recycled or composted by 2025.
• The Queensland flexible packaging market share is expected to grow significantly, with a projected compound annual growth rate (CAGR) of 19.8% from 2024 to 2032.
• The Australian Capital Territory is forecast to grow at a CAGR of 8.7% from 2024 to 2032.
• The pouches segment is projected to grow at a CAGR of 8.4% from 2024 to 2032

Industry News

March 2024

Mondelez International invested Licella, an Australian recycling technology company, in partnership with Amcor. Licella’s Cat-HTR platform transforms waste plastics into high-quality oil, supporting a circular economy and helping to reduce the carbon footprint.

October 2023

Visy opened its third corrugated cardboard box manufacturing plant in Hemmant, Brisbane, Queensland. The A$175 million project, first announced in April 2022, forms part of Visy’s broader A$2 billion investment in Australia. The facility, which can produce up to one million boxes daily, focuses on reducing landfill waste, cutting emissions, and creating new job opportunities.

Australia Flexible Packaging Market Drivers

Sustainability and Eco-Friendly Materials

The growing focus on sustainability is one of the key trends in Australia flexible packaging market, with both consumers and regulators demanding packaging that is recyclable, biodegradable, or made from renewable materials. This shift has driven innovation in compostable films, plant-based plastics, and recyclable laminates. Brands are increasingly turning to eco-friendly packaging to reduce environmental impact, meet consumer expectations, and comply with stricter waste management regulations. As a result, packaging manufacturers are concentrating on developing new, more sustainable materials to keep pace with these changes, making sustainability a major factor in market growth. In July 2023, Mondi launched a flexible packaging solution for snacks and convenience foods in Australia, made from recyclable materials. The packaging aims to reduce waste and improve sustainability in the growing snack food sector, while also providing enhanced product protection and responding to the rising demand for environmentally responsible packaging.

Growth in the Food and Beverage Industry

The food and beverage industry continues to be the leading driver of growth in the Australia flexible packaging market. As consumers increasingly seek convenient, portion-controlled, and on-the-go food options, flexible packaging provides an ideal solution. Innovations in materials that help preserve freshness and extend shelf life are especially crucial in this industry. From single-serve packs to resealable pouches, flexible packaging is becoming the preferred choice for brands looking to meet the evolving needs of modern consumers. Moreover, the growing demand for healthier and organic food products is driving the need for packaging solutions that prioritise sustainability, positioning flexible packaging as a key player in the changing food and beverage landscape. According to the USDA, Australia's food, drink, and grocery sectors accounted for approximately 33% of its manufacturing output, contributing A$116 billion in 2021.

Opportunities in the Australia Flexible Packaging Market

Smart Packaging and Functional Innovations

Smart packaging solutions are gaining momentum in the Australia flexible packaging market, with technologies such as QR codes, NFC (Near Field Communication), and RFID (Radio Frequency Identification) tags being integrated into packaging designs. These innovations allow consumers to engage with the product, access additional information, and track freshness or shelf life. Beyond boosting consumer interaction, smart packaging also improves supply chain efficiency by enhancing tracking and traceability. With growing consumer demand for transparency, these functional innovations provide added value to products, offering greater convenience and safety features. In August 2023, Huhtamaki launched a new range of smart flexible packaging in Australia, incorporating QR codes to improve consumer engagement. By scanning the codes, customers can access detailed product information, sustainability credentials, and promotional offers. This innovation is designed to meet the rising demand for interactive, informative packaging in the food sector.

Market Restraints

The Australia flexible packaging market faces several key challenges that could hinder its growth. The limited recycling infrastructure, particularly for multi-layered materials, reduces the effectiveness of eco-friendly packaging options. The higher cost of sustainable materials, such as biodegradable films, poses financial challenges, especially for smaller businesses. Additionally, there is insufficient consumer awareness about proper recycling practices, resulting in contamination.

The complex and evolving regulatory environment surrounding packaging waste also presents compliance issues for businesses. Moreover, rigid packaging remains a strong competitor, valued for its durability and perceived higher quality. Overcoming these obstacles will be crucial for fostering long-term growth and innovation in the market.

Australia Flexible Packaging Industry Segmentation

“Australia Flexible Packaging Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Packaging Material

• Paper
• Aluminium Foil
• BOPP Film
• PET
• Polyethylene
• Others

Market Breakup by Product

• Pouches
• Rollstock
• Films and Wraps
• Bags
• Others

Market Breakup by Application

• Food and Beverages
• Pharmaceutical and Healthcare
• Personal Care and Cosmetics
• Others

 Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• Australian Capital Territory
• Western Australia
• Others

Australia Flexible Packaging Market Share

By Packaging Material Insights

The Australia flexible packaging market is experiencing growth, with PET becoming a popular choice due to its lightweight, durable, and highly recyclable nature, making it an eco-friendly option. PET offers excellent barrier properties that help preserve product freshness and extend shelf life, particularly in food and beverages. Its clarity enhances product appeal, and its cost-effectiveness and customisation options make it a versatile packaging material. In 2023, Circular Plastics Australia (CPA) launched the largest PET plastic bottle recycling plant in Melbourne, Victoria. This facility, a joint venture between Pact, Cleanaway Waste Management, Asahi Beverages, and Coca-Cola Europacific Partners, marks a significant milestone in sustainable packaging.

According to the Australia flexible packaging market analysis, polyethylene (PE) occupies a significant share due to its versatility, cost-effectiveness, and lightweight nature, which helps reduce transportation costs and carbon emissions. Offering strong moisture resistance and durability, PE is suitable for a wide variety of products. Recyclable and aligned with sustainability goals, PE's flexibility allows for innovative and user-friendly packaging designs. In April 2023, Qenos introduced a high-performance polyethylene resin for automotive applications, enhancing vehicle durability, reducing weight, and contributing to improved fuel efficiency and lower emissions in line with industry trends.

By Product Analysis

The growth of the Australia flexible packaging market is being driven by Rollstock, which is cost-effective, efficient, and versatile, allowing for high-volume production of customised packaging. Ideal for packaging machines, it enables faster, continuous production lines. The segment is projected to grow at a CAGR of 8.1% from 2024 to 2032. Rollstock also offers excellent sealing properties, reduces waste, and supports sustainability by minimising material usage, making it particularly popular in the food and beverage sectors. In March 2024, Australian Packaging Corporation (APC) launched a new range of rollstock films for the Australian beverage industry. The 100% recyclable product improves product protection and reduces material waste, aligning with APC's sustainability goals and aiding the shift towards circular packaging solutions.

According to the Australia flexible packaging market report, the market is also dominated by films and wraps, which provide flexible, lightweight protection and excellent barrier properties to shield products from moisture, oxygen, and light. These materials are highly customisable for diverse applications, including food and pharmaceuticals. Their recyclability and ability to extend product shelf life make them ideal for the growing consumer demand for eco-friendly, sustainable packaging solutions. In September 2023, the APPMA introduced a new wrap film solution for the Australian meat industry, which enhances product protection while focusing on sustainability. Made from renewable and recyclable materials, the packaging meets environmental concerns while offering high-performance solutions for the food processing sector.

By Application Insights

The demand of Australia flexible packaging market is increasing, driven by growth in the food and beverage industry, owing to its excellent barrier properties that help maintain freshness and prolong shelf life. The segment is projected to grow at a CAGR of 8.2% from 2024 to 2032. Its lightweight design reduces transportation costs and environmental impact. Additionally, features such as resealable and portable options enhance consumer convenience, while promoting sustainable packaging solutions. In March 2024, Carlton & United Breweries introduced a new eco-friendly, fully recyclable flexible packaging solution for its beverages in Australia. The packaging is lightweight, reducing carbon emissions during transport, and supports the company’s ongoing commitment to sustainability and minimising the environmental impact of packaging.

The Australia flexible packaging market is also driven by the personal care and cosmetics sector, where flexible packaging provides excellent product protection, preserving quality and preventing leaks. It offers versatile design options, enabling custom shapes and sizes. Lightweight and cost-effective, it also meets the rising consumer demand for sustainable, eco-friendly packaging in beauty products. According to the International Trade Administration, Australia’s cosmetics industry is valued at approximately USD 3.5 billion, contributing to the growing need for packaging that balances functionality with sustainability.

Australia Flexible Packaging Market Regional Insights

New South Wales Flexible Packaging Market Insights

The flexible packaging market in New South Wales is expanding, driven by growing demand for sustainable solutions across various industries. The region benefits from a strong emphasis on eco-friendly materials, with innovations in recyclable, biodegradable, and lightweight packaging. The food and beverage sector is the primary driver of this growth. In 2021, New South Wales' food and beverage industry generated over AUD 21 billion in revenue, making up a significant portion of the state's manufacturing sector, according to government data.

Queensland Flexible Packaging Market Trends

The Queensland flexible packaging market is experiencing significant growth, propelled by consumer demand for convenience and sustainability. Queensland is projected to grow at a CAGR of 7.3% from 2024 to 2032. The shift towards eco-friendly materials, including compostable films and recyclable packaging, is reshaping the market. Additionally, rising demand for packaged foods, e-commerce, and innovative packaging solutions is boosting growth. In 2022, Queensland’s pharmaceutical manufacturing sector contributed around AUD 2.4 billion to the state’s economy, highlighting the strong expansion in the production of medicines and healthcare products, as reported by government statistics.

Western Australia Flexible Packaging Market Dynamics

Western Australia is projected to grow at a CAGR of 8.3% from 2024 to 2032. According to the Australia flexible packaging industry analysis, Western Australia is seeing rapid growth, driven by the widespread adoption of sustainable and innovative materials. High demand from the food and beverage sector, coupled with an increasing focus on reducing environmental impact, is accelerating this trend. Growing consumer awareness and regulatory pressure are further promoting the shift towards recyclable and biodegradable packaging. According to government data from 2020, Western Australia’s cosmetics industry generated over AUD 1 billion in sales, boosted by both local production and increased demand for beauty products in export markets.

Competitive Landscape

The Australia flexible packaging market key players cater to various sectors, including food, pharmaceuticals, and retail, offering high-quality, cost-effective packaging solutions. They prioritise sustainability by providing eco-friendly options, such as recyclable, biodegradable, and compostable materials, in response to increasing consumer demand for environmentally conscious packaging. These companies are known for their ability to deliver customised solutions tailored to specific client requirements, with a strong focus on innovation and customer satisfaction. Committed to quality, service, and reducing environmental impact, they aim to minimise waste through efficient packaging designs and sustainable materials. As a result, they have earned a solid reputation for reliability and progressive practices within the industry.

Key Industry Players

The Bag Broker: It is a UK-based supplier of eco-friendly packaging solutions, specialising in reusable bags and custom-made packaging. Established in 2008, the company focuses on providing sustainable, high-quality products for businesses worldwide, with an emphasis on reducing plastic waste. Their headquarters are in Manchester, United Kingdom.

AAG Packaging: It is an Australian packaging supplier offering custom-designed, sustainable, and cost-effective packaging solutions across various industries. Founded in 1994, the company is committed to innovation in packaging materials, including flexible and environmentally friendly options. AAG Packaging is headquartered in Sydney, Australia, with a focus on quality and service.

Filton Packaging: It is a UK-based supplier of flexible packaging solutions, providing custom-made and sustainable packaging for a variety of industries, including food and pharmaceuticals. Established in 1980, Filton Packaging focuses on offering high-quality, cost-effective, and eco-friendly options. The company is headquartered in Bristol, United Kingdom, and serves clients globally.

Orora Ltd.: It is an Australian packaging company specialising in the production of sustainable packaging solutions, including paper, cardboard, and flexible materials. Founded in 2013, Orora has its headquarters in Melbourne, Australia, and operates internationally, offering packaging services to a diverse range of industries with a focus on sustainability and innovation.

Other key players in the Australia flexible packaging market report are Gravure Packaging Group (Australian Packaging), Perfection Packaging, Wing Flexible Packaging Pty Ltd. and Metalprint Australia, among others.

Recent Developments

September 2024

Billerud unveiled a new flexible paper-based packaging solution for the Australian retail sector. Specifically designed for consumer goods, the packaging is both biodegradable and recyclable, meeting the rising demand for plastic-free alternatives. This launch is a key part of the company’s wider sustainability efforts.

February 2023

Huhtamaki introduced a new line of flexible packaging for confectionery products in Australia. Constructed from recyclable materials, the packaging provides enhanced barrier protection while being lightweight and cost-effective. It addresses the growing consumer demand for sustainable packaging options in the food industry.