Australia Plastics Market Size, Share, Growth Analysis Report and Forecast Trends (2024-2032)

Australia Plastic Market Trends

Increasing demand for sustainability and circular economy practices is among the significant trends in the Australia plastic market. Companies are adapting to the use of recyclable materials and designing the products so that they will be recyclable. Also, it includes the measure of the National Packaging Targets, whereby all the packaging has to be reusable, recyclable, or compostable. The demand for biodegradable and compostable alternatives to single-use plastics is booming, as companies innovate to fulfil the growing need for more environmentally friendly products.

Australia Plastic Market Growth

Various factors are pushing demand in the plastic market in Australia to be sustainable. Bans on single-use plastics by governments force companies to innovate in eco-friendly alternatives. Rising consumer preferences for sustainable products force brands to use more recycled material in packaging. Corporate responsibility initiatives push companies to work toward environmental goals, thus enhancing Australia plastic demand growth. Advances in recycling technology improve efficiency and increase recyclability. Economic incentives to use recycled materials promote investment in sustainable practices. The collective engagement of industry players helps enhance solutions toward reducing plastic waste and increasing recycling rates.

Australia Plastic Market Insights

• In 2018 and 2019, Australians used 3.5 million tonnes of plastics, out of which nearly 60% was imported.
• Australia uses approximately 70 billion pieces of soft 'scrunchable' plastics, such as food wrappers, each year, thereby propelling the growth of the Australia plastic market.
• The National Packaging Targets in Australia aim for 100% reusable or recyclable packaging, 70% recycling rates for plastics, 50% recycled content, and phasing out problematic single-use plastics.

Industry News

September 2024

The Australian Government has invested in over 14,000 tonnes of soft plastics to be diverted annually from South Australian landfills through supporting advanced recycling technology and the creation of 45 jobs for enhancing the circular economy.

July 2022

The Recycling Modernisation Fund, the National Waste Policy Action Plan, and future funding under the Modern Manufacturing Strategy will form the backbone of a step change increase in Australia's domestic recycling capacity. It will create a transformation of the Australian recycling industry for AUD 1 billion and around 10,000 new jobs.

Australia Plastic Market Drivers

Collaboration drives demand by promoting innovation and sustainable practices in Australia's plastic market.

Demand in the Australian plastic market is highly driven by innovative results from shared solutions, greatly because of collaboration and partnerships. For instance, industry groups, government agencies, and NGOs collaborate on developing extensive recycling programs and educating the public. The APCO teams up with brands on various sustainability initiatives in packaging, thereby increasing recycling rates and augmenting the growth of Australia plastic market. These alliances thus allow for not only resource sharing but also accelerate procedures towards adopting green materials. Bringing together stakeholders better challenges and develops demand in the market for sustainable plastic solutions.

Opportunities in the Australia Plastic Market

Niche opportunities include developing specialty bioplastics for agriculture and compostable food packaging solutions.

A significant niche opportunity for key players in the Australian plastic market is the development of specialty bioplastics tailored for specific industries, such as agriculture and food packaging.  For example, crop-protective biodegradable films may respond to environmental concerns but could simultaneously improve agricultural productivity, hence leading to Australia plastic market opportunities. The production of compostable fresh-produce packaging is another product that can be tailored for a specific niche in supermarkets because the demand for such alternatives will continue to increase in stores. Targeted applications will help the company to zero in on the differentiating capabilities of its offerings toward satisfying pertinent regulatory requirements, and appeal to environmentally conscious consumers looking for innovative solutions.

Market Dynamics

One of the new technologies in the market is advanced chemical recycling, which is now being used to break plastics that cannot be easily recycled back into their original monomers. For example, companies can recycle multi-layered packaging that can't be processed by traditional means using this technology, thus enhancing the Australia plastic market dynamics and trends. Such innovations as the one made available by Circular Plastics Australia use this method in order to produce high quality recyclates to be re-used in manufacturing. It will help improve recycling rates and support the circular economy by reducing plastic waste and virgin material dependencies.

Market Restraints

Inefficient recycling infrastructure is a prominent challenge in the market. A lot of existing facilities are unable to handle diverse types of plastics, particularly soft plastics and multi-layered packaging; thus, recycling rates remain low, leading to Australia plastic market challenges. Contamination in recyclable materials increases the processing cost while lowering the quality of products recycled. Transition towards sustainable alternatives also poses a challenge in the form of more expensive production costs and limited consumer acceptance. These have hindered companies from innovating and from responding to the increasing demand for sustainable solutions of plastic.

Australia Plastic Industry Segmentation

The EMR’s report titled “Australia Plastic Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Product

• Polyethylene (PE)
• Polypropylene (PP)
• Polyurethane (PU)
• Polyvinyl chloride (PVC)
• Polyethylene terephthalate (PET)
• Polystyrene (PS)
• Others

Market Breakup by Application

• Injection Molding
• Blow Molding
• Casting
• Thermoforming
• Extrusion
• Others

Market Breakup by End Use

• Packaging
• Construction
• Electrical and Electronics
• Automotive
• Housewares
• Medical Devices
• Others

Market Breakup by Region

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

Australia Plastic Market Share

By Product

Plastic products like PE, PP, and PET gain traction due to sustainability and versatility.

The use of various plastics in Australia is highly appreciated because of the applications of these products and sustainability. Polyethylene (PE) is very much used in packaging due to its flexibility and durability. Polypropylene (PP) is more and more applied in food containers and automobile parts due to its chemical resistance and light weight. AS per Australia plastic market analysis, polyurethane (PU) is highly used in insulation and furniture because of its versatility. Polyvinyl chloride (PVC) is commonly applied in construction and plumbing. PET is used for bottles of beverage products due to beverage recycling campaigns. PS is found in most applications for food packaging, and "Others" are biodegradable products that become more readily available for the environmentalist.

Market Analysis by Application

Long-distance rail growth contrasts with increasing demand for short-distance commuting in urban areas.
Plastics are used in Australia in different applications. In injection molding, molten plastic must be forced into molds to result in very complex shapes; this is common with consumer goods and automotive parts. The plastics get inflated through the air to shape them into hollow objects like bottles and containers in blow molding. As per Australia plastic industry analysis, casting takes liquid plastic and pours it into molds for creating designs in decorative items. Thermoforming is the heating of plastic sheets into a form of specified shape. Packaging and food trays are most often used. Extrusion forces plastic through a die, hence creating continuous profiles in the form of pipes or films. "Others" include specialised techniques like 3D printing and vacuum forming.

End Use Insights

Plastics are used in packaging, construction, automotive, electronics, medical devices, and housewares.

The most dominant end-uses for plastics in Australian industry include packaging, which is the largest application, providing light, durable solutions for food and other consumer goods. PVC and polyethylene materials in construction are used in piping, insulation, and weatherproofing. Electrical and electronics use plastics in the form of components, casings, and insulation on account of their insulating properties. In the automotive sector, lightweight plastics save fuel and cut emissions. In addition, kitchenware and storage are among the other flexible plastics used in aiding household products, and for medical equipment, they employ biocompatible plastics that aid in sterility and safety. There is also the use of agricultural films and furniture.

Australia Plastic Market Regional Insights

New South Wales Plastic Market Regional Insights

New South Wales plastic market accounts for about one-third of the plastics market share in Australia, which contributes to overall national plastic demand. This is facilitated within NSW through diversified manufacturing industries, such as high volume in packaging and building construction sectors. Urban consumption by Sydney and other locations having populations of 8 million and above calls for heavy use of plastics. Current efforts to enhance plastic recycling infrastructure and reduction of single-use plastics indicate heightened attention of Victoria towards sustainable practice with more involvement to meet the state targets aligned with the federal framework towards enhanced circular economy behaviours.

Victoria Plastic Market Analysis

Victoria has diversified manufacturing with significant demand for plastics in the packaging, auto, and construction sectors. The urban consumption for its large population and the underlying economic activity in Melbourne city are quite significant. Lately, the Victorian governments have concentrated on the following themes: recycling capabilities, enhancement of the facilities and minimising waste in the form of plastic, leading to sustainable lifestyle adoption. Victoria leads a state toward circular economy-driven innovation of plastic products.

Queensland Plastic Market Trends

The plastic market in Queensland is undergoing significant trends led by sustainability and innovation. With the growing stress on reducing plastic waste, consumer behaviour is being modified through initiatives such as a ban on single-use plastics by the Queensland Government. Demand for recycled materials has been increasing, with QLD-based Close the Loop converting plastic waste into eco-friendly products. The area of interest for manufacturers is finding ways to meet the environmentally sensitive needs of consumers. This has set Queensland on the forefront for sustainable plastic solutions.

Australian Capital Territory Plastic Market Drivers

Government policies promoting sustainability and minimising waste characterise the ACT plastic market. Policies such as the Waste Management Strategy of ACT are directed at achieving a circular economy with reduced usage of plastics and increased recycling rates. For instance, a container deposit scheme motivates recycling and reduces litter. Consumer awareness and demand for eco-friendly products are also increasing so that local businesses, such as an eco-focused packaging company, have to come up with sustainable alternatives, which encourages innovation in the ACT's plastic market.

Western Australia Plastic Market Dynamics

The western part of Australia comprises a significant share of the country's plastic market scenario. The resource-rich state demands different types of plastics in the construction, mining, and packaging industries. It is estimated that about 2.7 million people live in urbanised parts of the state, Perth. The WA Government has also brought forward the Plastic Plan that aims to phase out single-use plastics while strengthening recycling systems. All these reflect the increasing feelings of sustainability and resource-use effectiveness within the plastic market in Western Australia.

Competitive Landscape

Australia plastic market players in the plastic market are gradually moving towards sustainability and innovation. The companies are making efforts to reduce the environment footprint through the use of recycled material, toxic chemical minimization, and recyclable product development. Australia plastic companies invest in state-of-the-art technologies to enhance the production efficiency with biodegradable alternatives. They look forward to their alignment with the government regulation and public sentiments for adopting eco-friendly practices and finally strive to promote a circular economy within the plastics industry.

Key Industry Players

The Martogg Group

The Martogg Group was established in 1995 and is headquartered in Melbourne. It specialises in recycled plastic solutions, which include flexible packaging and specialty films. It is on a mission to ensure sustainability and innovation in enhancing the circular economy within Australia's plastics industry.

Viva Energy Australia Group Ltd

Viva Energy Australia, based in Geelong and established in 1904, specialises in plastic products such as packaging and storage. They are committed to sustainability by investing in technology that reduces environmental impact and enhances the lifecycle of plastic materials.

Duromer Products Pty Ltd

Duromer Products was set up in 2009, based in Melbourne and involves custom plastic solutions engineering, and plastics, to mention a few. More focus is given on both quality and innovation, to assure sustainable practice and cost-efficient production, to try and satisfy customers in the market of Australia.

Other Australia plastic market key players are Olympic Polymers Pty Ltd, and MPQ Plastics Pty Ltd., among others.

Recent Developments

September 2024

CSIRO, Australia's national science agency, and Murdoch University launched The Bioplastics Innovation Hub, a $8 million collaboration which will work with industry partners to develop a new generation of 100 percent compostable plastic.

September 2024

The Australian Government held public consultation on two pieces of proposed legislation for reducing toxic chemicals in packaging and enforcing minimum recycled content, which was held from 27 September through to 28 October 2024.