Plastic Bag and Film Manufacturing in Australia Industry Market Research Report now updated by IBISWorld

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The Plastic Bag and Film Manufacturing industry in Australia is a highly mechanised, domestically focused industry with few value added opportunities to offer new entrants. In the past five years, IBISWorld estimates that the industry suffered an annualised decline in revenue. In that time, costs rose and firms struggled to pass these rises onto consumers because of increased cheaper import competition. Additionally, various governments and companies either banned or put a levy on plastic bags. The increased price benefits associated with imported products saw demand for the industry's products suffer, as many consumers shifted to imported goods. For these reasons, industry research firm IBISWorld has updated its report on the Plastic Bag and Film Manufacturing in Australia industry.

IBISWorld Market Research

IBISWorld Market Research

Many plastic bag and film manufacturers are packing it in due to fierce competition

The Plastic Bag and Film Manufacturing industry in Australia is a highly mechanised, domestically focused industry with few value added opportunities to offer new entrants. In the past five years, IBISWorld estimates that the industry suffered an annualised decline in revenue of 2.6%. According to IBISWorld industry analyst Tim Stephen, 'in that time, costs rose and firms struggled to pass these rises onto consumers because of increased cheaper import competition.' Additionally, various governments and companies either banned or put a levy on plastic bags. The increased price benefits associated with imported products saw demand for the industry's products suffer, as many consumers shifted to imported goods. Revenue is expected to grow 3.5% in 2011-12 to reach $2.74 billion, as manufacturing volumes pick up and consumer spending continues to rebound.

Over the five years through 2016-17, IBISWorld forecasts industry revenue will grow marginally. The Plastic Bag and Film Manufacturing industry will continue to face strong import competition and rising costs, both of which squeeze a firms' bottom line. Stephen adds, 'the industry is expected to consolidate further to combat these issues, which will see less enterprises operating in the industry and those that remain will be larger.' With innovation being restricted to that originating in downstream markets the industry supplies, the potential for growth will be limited. Industry performance is also largely dependent on whether the government will implement further bans or levies on plastic shopping bags. This could significantly affect industry revenue, given this product accounts for a sizable share of sales income.

The industry displays a medium level of concentration. The four largest enterprises are Amcor Limited, Aperio Group, Sealed Air Australia and Innovia Films Asia Pacific. In March 2012, Amcor received regulatory approval to finalise its acquisition of Aperio, which will result in increased concentration in the industry. There are a large number of niche markets in the industry, which has reduced the overall concentration by distributing the market dominance of individual firms. However, there are certain market segments with a highly concentrated dominance by a few key players. Having a medium level of concentration has allowed firms to pass on resin price increases to their customers, which has shielded their bottom lines. At the same time, it has deterred new operators from entering the market.

For more information, visit IBISWorld’s Plastic Bag and Film Manufacturing report in Australia industry page.

Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau

IBISWorld industry Report Key Topics

This industry consists of enterprises that manufacture thin plastic film, food wrapping, plastic bags and garbage bags.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalisation & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.

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Gavin Smith
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