Packaging Services in Australia - Market Research Report (2013-2028)
Melbourne, Australia
Last Updated: August 2023
ANZSIC N7320Revenue
$2.7bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
11,853
Businesses
1,139
Wages
$XXX.Xm
Packaging Services in Australia industry analysis
Despite difficult downstream demand conditions, the Packaging Services industry has performed relatively well in recent years. Domestic manufacturing output has been subdued over the past decade due to rising import penetration from countries with lower production costs. As domestic manufacturing conditions have become tougher, manufacturers have been outsourcing non-core activities, like packaging, to reduce costs and remain competitive in the face of rising import penetration. Due to rising business process outsourcing, industry-wide revenue has been growing at an average annualised 1.7% over the past five years and is expected to total an estimated $2.7 billion in 2022-23, when revenue will decline by an estimated 0.8%.Growing demand for contract packaging solutions from upstream manufacturers and the industry's increasing portfolio of packaging types have underpinned revenue growth in recent years. Packaging services providers have gained greater market access by adapting their business models to cater to specialty packaging requirements, like those for dangerous chemicals. In recent years, rising input costs and increased price-based competition have reduced industry profitability. However, this decline has been limited by productivity gains made through the progressive replacement of low-skilled jobs with more efficient, automated machinery.The Packaging Services industry revenue is poised to continue growing over the coming years, supported by improving demand across many of the industry's key markets. Rising demand from pharmaceutical product manufacturing is set to drive industry revenue growth. The development of waste reduction and recycling regulations in Australia will support demand for packaging services, as manufacturers outsource packaging services to comply with the additional requirements. Rising automation adoption is anticipated to lead to productivity gains, boosting industry-wide profit margins over the coming years. However, climbing input costs will limit growth in industry profitability. Overall, industry revenue is projected to grow at an annualised 1.1% over the five years through 2027-28, to an estimated $2.8 billion.
Trends and Insights
- Activity in many of the industry’s key markets has been subdued in recent years. However, manufacturers and wholesalers are increasingly outsourcing packaging services to reduce costs and boost competitiveness with imports.
- Operators that provide pharmaceutical goods packaging services have benefited from a rise in demand from pharmaceutical product manufacturers. An ageing population, the pandemic and a greater incidence of chronic disease have lifted demand for pharmaceutical products.
- The geographical distribution of industry enterprises is broadly correlated with the distribution of the Australian population and national economic activity. That’s why most establishments are located in Victoria, New South Wales and Queensland.
- The Packaging Services industry displays a moderate level of coemption. Due to the specialised nature of many packaging operations, packaging services providers generally compete with other operators that offer similar services instead of the wider industry.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has grown at a CAGR of 1.7 % over the past five years, to reach an estimated $2.7bn in 2023.
Trends and Insights
Rising business process outsourcing has driven the industry's growth
- This expansion of industry revenue has been underpinned by the growing trend of manufacturers and wholesalers outsourcing their packaging operations.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
A growing focus on sustainable packaging will affect packaging services providers
- The effect of packaging products on the environment is a growing issue for the industry. Packaging contributes to litter and landfill and has been criticised as often being unnecessary and wasteful.
Biggest companies in the Packaging Services in Australia
| Company | Market Share (%)
2023 | Revenue ($m)
2023 |
|---|---|---|
Annex Holdings Proprietary Limited | 26.6 |
To view the market share and analysis for all 1 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Pharmaceutical goods packaging, Cosmetics and toiletries packaging and Food and beverage packaging. Pharmaceutical goods packaging is the largest segment of the Packaging Services in Australia.
Trends and Insights
Growing imports of packaged food and beverage products have limited food and beverage packaging demand
- This segment includes the contracted packing of foodstuffs, fresh fruits and vegetables, and alcoholic and non-alcoholic beverages.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Paperboard Container Manufacturing in Australia
- Plastic Bottle Manufacturing in Australia
- Plastic Pipe and Plastic Packaging Material Manufacturing in Australia
- General Warehousing and Cold Storage in Australia
International industries
- Packaging & Labeling Services in the US
- Packaging & Labelling Services in Canada
- Packaging Services in New Zealand
- Packaging Services in the UK
Table of Contents
About this industry
Industry definition
Industry firms pack goods in bottles, cans, collapsible tubes, cartons, plastic sachets, film or bags, and other containers or materials.
What's included in this industry?
Pharmaceutical goods packagingCosmetics and toiletries packagingFood and beverage packagingChemical goods packagingGeneral merchandise packagingCleaning products packagingPaint and adhesives packagingCompanies
Annex Holdings Proprietary LimitedPurchase this report to view all 1 major companies in this industry.
Related Terms
BIOPLASTICSCOUNTRY OF ORIGINRETORT POUCHCARBON FOOTPRINTCIRCULAR ECONOMYIndustry Code
ANZSIC 7320 - Packaging Services in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Activity in many of the industry’s key markets has been subdued in recent years. However, manufacturers and wholesalers are increasingly outsourcing packaging services to red...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Operators that provide pharmaceutical goods packaging services have benefited from a rise in demand from pharmaceutical product manufacturers. An ageing population, the pande...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2023
- Product innovation level
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
The geographical distribution of industry enterprises is broadly correlated with the distribution of the Australian population and national economic activity. That’s why most...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each region in 2023
- Number and share of revenue each region accounts for in 2023
- Number and share of wages each region accounts for in 2023
- Number and share of employees in each region in 2023
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
The Packaging Services industry displays a moderate level of coemption. Due to the specialised nature of many packaging operations, packaging services providers generally com...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
No companies in the Packaging Services industry account for over 5.0% of the market. Operators tend to operate on a small scale, specialising in providing packaging services ...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of Annex Holdings Proprietary Limited's performance by revenue, market share and profit margin from 2017 through 2023
Detailed analysis
- Description and key data for Annex Holdings Proprietary Limited, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The Packaging Services industry is subject to moderate regulation, a trend that has increased in recent years. Regulations regarding the packaging and labelling of products v...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Increasing prices of many inputs and fierce price-based competition have caused profit margins to fall in recent years. However, solid demand growth has limited this decline.
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Packaging Services industry in Australia in 2024?
The market size of the Packaging Services industry in Australia is $2.7bn in 2024.
How many businesses are there in the Packaging Services in Australia industry in 2023?
There are 1,139 businesses in the Packaging Services industry in Australia, which has grown at a CAGR of 4.3 % between 2018 and 2023.
Has the Packaging Services industry in Australia grown or declined over the past 5 years?
The market size of the Packaging Services industry in Australia has been growing at a CAGR of 1.7 % between 2018 and 2023.
What is the forecast growth of the Packaging Services industry in Australia over the next 5 years?
Over the next five years, the Packaging Services industry in Australia is expected to grow.
What are the biggest companies in the Packaging Services market in Australia?
The biggest company operating in the Packaging Services market in Australia is Annex Holdings Proprietary Limited
What does the Packaging Services in Australia include?
Pharmaceutical goods packaging and Cosmetics and toiletries packaging are part of the Packaging Services industry.
Which companies have the highest market share in the Packaging Services in Australia?
The company holding the most market share in Australia is Annex Holdings Proprietary Limited.
How competitive is the Packaging Services industry in Australia?
The level of competition is moderate and increasing in the Packaging Services industry in Australia.
