Packaging Industry in Australia
Euromonitor International's Packaging Industry in Australia Euromonitor International's World Market for Glass Packaging report offers insight into key trends and developments in global and regional consumer glass packaging. It provides analysis of the major growth markets and end-use applications, together with analysis of the corporate strategies of the leading companies.
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Chapters: 5 | Tables: 27 | Publication date: Sep 2007
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Executive summary
Overview
Consolidation and utilisation of synergies is very often seen amongst the players in the packaging industry in Australia, bringing to the table complementary strengths and increased market share potential. Companies such as Amcor and Visy lead in the packaging industry in Australia with major expansions.
Key statistics for Australian packaging are as follows the value of packaging produced in Australia is A$7-7.5 billion; about 30,000 people are directly employed; 65-70% of Australian packaging is used for food and beverages; and paper/board is the largest single packaging material followed by plastics, metal and glass. The major packaging materials used in Australia are glass, metal (aluminium and steel), paper/board (cartons and corrugated), and plastics (HDPE, PET, PVC, polypropylene and polystyrene).
National Packaging Covenant
A major development in July 2005 was the second five-year Covenant, which was approved by Ministers in the Environment Protection and Heritage Council (EPHC) and is now operative. The National Packaging Covenant is a voluntary initiative by the Government and the industry, to reduce the negative effects of packaging on the environment. It is designed to minimise the environmental impact arising from the disposal of used packaging, conserve resources through better design and production processes and facilitate the re-use and recycling of used packaging materials.
The Packaging Council of Australia
The PCA is the peak national association for companies in the packaging supply chain – raw material suppliers, packaging manufacturers, packaging users, retailers and packaging designers/consultants – with offices located in South Melbourne, Victoria. The association provides invaluable support and assistance to the members of the industry by organising industry events and conducting the annual awards to promote excellence and innovation. The Australian Packaging Industry Directory – a recent initiative of the PCA – is an invaluable resource to anyone seeking information about Australian packaging industry players.
The Environment
Environmental activities have been a major focus for the packaging industry for a number of years, and will remain so. Packaging has been under attack as "unnecessary" and "wasteful" and criticised as a visible part of the litter stream. Yet packaging is not a major contributor to Australia's environmental problems. It comprises only around 10% of the urban solid waste stream. The industry has a long history of environmental responsibility, being involved in recycling long before the environment became a popular issue. In addition to recycling, the packaging industry has made a major environmental contribution in the form of light weighting or source reduction. Significant weight reductions were common over the last decade (ending 2007).
Global competition
Australian owned companies are the dominant packaging manufacturers. Competition between packaging companies and different types of packaging is intense. Packaging organisations are beginning to look externally for potential markets and have become export-orientated to an unprecedented degree. The issue of international competitiveness of Australian packaging has come to the forefront in recent years as processed food, horticulture and other sectors seek to expand their exports, particularly into the Asia Pacific region. The future of the Australian packaging and processed food and horticultural industries are closely linked. With these industries, high growth opportunities are to be found overseas.
Simultaneously, several small players in the importing and reselling market are emerging with supplies coming in from the Asian region. Consumer demand for cost saving is driving this development, where more and more packaging companies are looking to export their products to Australia. The wine industry generates huge demand for glass bottles.
Companies will need to invest, innovate and develop the appropriate skills base to meet these challenges. Flexibility and adaptability will set apart the leaders in the industry. Annual awards include the Australian Packaging Awards for commercial packages, the Southern Cross Package Design Awards for innovation and excellence in student graphic and industrial design, and the Packaging Achiever Award.
Table of contents
EXECUTIVE SUMMARY
Overview
National Packaging Covenant
The Packaging Council of Australia
The Environment
Global competition
MARKET BACKGROUND
PACKAGING LEGISLATION
Legislation
The Packaging Council of Australia
National Packaging Covenant
Packaging labelling
RECYCLING AND THE ENVIRONMENT
Paper-based packaging is the most recycled type
Down cycling vs. recycling
The Environmental Code of Practice for Packaging
National Packaging Covenant
Kerbside recycling
Difficulties in collecting waste and recycling data
Impact of technologies on waste policy
Bio-degradable plastics
Remote Frequency Identification Devices (RFID)
Container Deposit Legislation
Recycling targets
Table 1 Overview of Packaging Recycling and Recovery in Australia 2004/2005 and Proposals for 2010
CORPORATE ACTIVITY IN PACKAGING
Companies concentrating on the environment
Reduction of costs
Value additions in response to consumer demand
Looks matter
MAJOR MARKET PLAYERS (LOCAL COMPANY PROFILES)
ACI PACKAGING GROUP
Company structure
Competitive environment
Business strategy moving forward
Products
Summary 1 ACI Packaging Group Operational Indicators 2005
Summary 2 Major End-Use Markets for ACI Packaging Group by Pack Type 2005
ALCOA OF AUSTRALIA LTD
Company structure
Business strategy moving forward
Products
Summary 3 Alcoa of Australia Ltd Operational Indicators 2006
Summary 4 Major End-Use Markets for Alcoa of Australia Ltd by Pack Type 2005
AMCOR LTD
Company structure
Competitive environment
Business strategy moving forward
Products
Summary 5 Major End-Use Markets for Amcor Ltd by Pack Type 2005
APERIO GROUP PTY LTD
Company structure
Business strategy moving forward
Products
Summary 6 Major End-Use Markets for Aperio Group Pty Ltd by Pack Type 2005
FORMRITE AUSTRALIA PTY LTD
Company structure
Products
Summary 7 Major End-Use Markets for Formrite Australia Pty Ltd by Pack Type 2005
HUHTAMAKI AUSTRALIA LTD
Company structure
Competitive environment
Business strategy moving forward
Products
Summary 8 Huhtamaki Australia Ltd Operational Indicators 2006
Summary 9 Major End-Use Markets for Huhtamaki Australia Ltd by Pack Type 2005
IRWIN & SHEEHAN PTY LTD
Company structure
Business strategy moving forward
Products
Summary 10 Major End-Use Markets for Irwin & Sheehan Pty Ltd by Pack Type 2005
LE MAC AUSTRALIA GROUP
Company structure
Competitive environment
Products
Summary 11 Major End-Use Markets for Le Mac Australia Group by Pack Type 2005
NATIONAL CAN INDUSTRIES LTD (NCI)
Company structure
Competitive environment
Business strategy moving forward
Summary 12 National Can Industries Ltd Operational Indicators 2006
Summary 13 Major End-Use Markets for National Can Industries Ltd by Pack Type 2006
SEALED AIR CORPORATION INC
Company structure
Business strategy moving forward
Products
Fresh food packaging
Protective Packaging
Shrink packaging
Medical Products
Summary 14 Major End-Use Markets for Sealed Air Corporation Inc by Pack Type 2006
SONOCO AUSTRALIA PTY LTD
Competitive environment
Business strategy moving forward
Products
Summary 15 Major End-Use Markets for Sonoco Australia Pty Ltd by Pack Type 2006
TETRA PAK MANUFACTURING PTY LTD
Company structure
Competitive environment
Business strategy moving forward
Summary 16 Major End-Use Markets for Tetra Pak Manufacturing Pty Ltd by Pack Type 2005
VISCOUNT PLASTICS PTY LTD
Company structure
Competitive environment
Business strategy moving forward
Products
Summary 17 Major End-Use Markets for Viscount Plastics Pty Ltd by Pack Type 2006
VISY INDUSTRIES
Company structure
Competitive environment
Business strategy moving forward
Products
Summary 18 Visy Industries Operational Indicators 2006
Summary 19 Major End-Use Markets for Visy Industries by Pack Type 2005
MAJOR MARKET PLAYERS BY PACK TYPE
RIGID PLASTIC
Major players
Summary 20 Major Rigid Plastic Packaging Manufacturers by Pack Type 2005
METAL
Major players
Summary 21 Major Metal Packaging Manufacturers by Pack Type 2005
FLEXIBLE PACKAGING
Major players
Summary 22 Ranking of Major Flexible Packaging Manufacturers 2005
GLASS
Major players
Summary 23 Ranking of Major Glass Packaging Manufacturers 2005
LIQUID CARTONS
Major players
Summary 24 Share of Major Liquid Carton Manufacturers 2005
PAPER-BASED PACKAGING
Summary 25 Major Paper-based Packaging Manufacturers by Pack Type 2005
CLOSURES
Major players
Summary 26 Ranking of Major Closure Manufacturers 2005