Innovation the key to industry growth over next five years
Melbourne, Australia (PRWEB) June 06, 2013
Industry revenue has increased at a relatively stable pace in the five years through 2012-13 due to steady demand from food and beverage manufacturers and other sectors. IBISWorld estimates industry revenue to increase at an annualised 2.6% over the five years through 2012-13 to $687.7 million, including an anticipated 3.9% increase in 2012-13. According to IBISWorld industry analyst Alen Allday, “domestic demand for solid paperboard has shifted towards paper products in the domestic market, as per capita consumption of paper continues to increase”. With low international trade levels, total domestic demand is expected to have increased 2.6% per annum over the five years through 2012-13. The increase in value mainly stems from increasing final prices, while production volumes have increased.
The Paperboard Container Manufacturing industry has a high concentration level. “As a result, pricing growth has been limited and firms have competed with each other on low profit margins” says Allday. “The industry's large firms continue to invest in new equipment and machinery to benefit from economies of scale, resulting in higher output volumes and further increases in industry concentration.” This has also led some smaller companies to exit the industry, as they have been unable to compete with the four largest players – Amcor Ltd, Pratt Holdings Proprietary Limited, Detmold Holdings Pty Ltd and Colorpak Limited.
The Paperboard Container Manufacturing industry is starting to market recycled cardboard as a sustainable product and a feasible alternative to plastic packaging. A number of niche companies are starting to develop biodegradable and compostable products to appeal to environmentally conscious consumers.
Due to the high industry concentration level, smaller producers may be forced to exit the industry unless they can secure contracts by introducing new and innovative products. Growing Asian manufacturing industries are expected to continue taking advantage of lower costs to offer a better value alternative to the industry's domestic markets and downstream manufacturers. Domestic demand is forecast to increase at a steady rate over the next five years. The industry is expected to continue its positive trend throughout the next five years.
For more information, visit IBISWorld’s Paperboard Container Manufacturing report in Australia industry page.
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IBISWorld industry Report Key Topics
Industry operators convert purchased paper and paperboard into solid paperboard packaging containers (excluding corrugated containers). These are sold to various manufacturers of consumer goods and distributors. End products include folding cartons, tobacco packs, and beverage and food carton packaging.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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.