Australia Contract Packaging Market Size (2024 - 2029)

Australia Contract Packaging Market Analysis

The Australia Contract Packaging Market size is estimated at USD 396.45 million in 2024, and is expected to reach USD 631.56 million by 2029, growing at a CAGR of 9.76% during the forecast period (2024-2029).

• In recent years, contract packaging services in Australia have witnessed significant growth, owing to the changing preference of manufacturing firms toward contract packagers, as they increasingly focus on cost optimization to enhance their core competency. Many industry experts claim that these services can reduce operational costs by 7-10% due to the reduced maintenance costs of machines and labor costs.
• Packaging regulations are evolving rapidly, especially for food and beverage products. Meeting stringent regulations and norms requires several inspection and quality check operations. By outsourcing packaging activities, the hectic task of meeting such regulations is passed on to the contract packaging agency, motivating more manufacturers to prefer contract packages over in-house packaging activities.
• According to the article published by the Food Packaging Forum in Australia in August 2023, Australian environment ministers agreed to reduce toxic chemicals in food packaging, develop packaging design guidelines and objectives, and harmonize curbside recycling schemes. Several new packaging guidelines across the country are likely to strengthen the demand for contract packaging.
• The growth of the e-commerce industry in Australia is also emerging as one of the major factors driving the market’s growth. This trend encourages contract packaging and logistic companies to utilize the packing opportunity to gain control over the value chain. However, contract packaging can be time-consuming, as products are transported several times between manufacturers and packagers, thus increasing the potential for damage. In the case of a liquid product, the percentage would be higher since damage to one bottle can destroy multiple cases. The Australian contract packaging market is witnessing stringent demand from in-house packaging manufacturers.
• Furthermore, the dynamic packaging landscape poses a significant challenge for contract packaging providers, potentially hindering market growth. To remain competitive, these providers must continuously adapt to evolving consumer preferences and demands. This adaptation is crucial for fulfilling the changing requirements of the market and ensuring sustained growth.
• Supply chains, notably in the end-user industries, faced significant disruption and difficulty during COVID-19 when governments closed their borders or imposed trade restrictions. On the other hand, sales through online retail channels significantly contributed to market penetration. The increased demand from the food and beverage and pharmaceutical industries was further fueled by the pandemic. The growth of the e-commerce industry in Australia is expected to be one of the major factors driving the Australian contract packaging market.

Australia Contract Packaging Industry Segmentation

Contract packaging is the process of assembling a product or good into its final finished packaging. Contract packaging occurs whenever any business contracts with a third-party packaging or supply chain company to manage its packaging needs and supply chain.

The Australian contract packaging market is segmented by type (primary, secondary, and tertiary) and end user (food, beverage, pharmaceutical, home care and personal care, and other end users). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.