IBISWorld Market Research
A strong Australian dollar has made imports comparatively cheaper for downstream retail industries.
Melbourne, Australia (PRWEB) May 16, 2014
The Plastic Bag and Film Manufacturing industry in Australia has performed poorly over the past five years, due to strong import competition and a number of domestic bans being placed on industry products. According to IBISWorld industry analyst Spencer Little, “while the industry displays low barriers to entry, low-cost generic products have been dominated by imports from countries with lower operating costs such as China and Thailand.” A strong Australian dollar over much of this period has also made imports comparatively cheaper for downstream retail and construction industries and domestic exports less affordable in overseas markets. In addition, state governments in Western Australia, South Australia, the Australian Capital Territory and Tasmania have banned supermarkets and retail outlets from using high-density polyethylene (HDPE) plastic bags over the past five years. Revenue growth has therefore been restricted over this period.
Revenue is estimated to decline at an annualised 2.2% over the five years through 2013-14. In 2013-14, revenue is forecast to rise by 2.5% to reach $2.4 billion, due to the depreciation of the Australian dollar and greater household consumption expenditure. “Consolidation has occurred in the industry, with the largest player, Amcor Ltd, acquiring smaller firms in an attempt to increase its revenue and market share,” says Little. Still, the industry exhibits a low level of market share concentration, with Amcor and Sealed Air Australia (Holdings) Pty Limited the only major players.
Over the next five years, the Plastic Bag and Film Manufacturing industry is expected to rebound slightly. A fall in Australia's trade-weighted index, increased demand from food retailing and construction industries and greater household consumption expenditure are anticipated to assist industry performance over the period. Industry consolidation is projected to increase, with enterprises and establishments declining at an annualised 0.4% and 0.1% respectively. Any additional government legislation banning retailers from using HDPE plastic bags is expected to restrict revenue growth over the next five years. Public concerns over environmental issues are forecast to grow over the five years through 2018-19, increasing pressure on state governments to ban products that are detrimental to the environment such as plastic bags.
For more information, visit IBISWorld’s Plastic Bag and Film Manufacturing report in Australia industry page.
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IBISWorld industry Report Key Topics
This industry primarily consists of companies that manufacture polymer sheets or film into packaging material. This includes plastic bags, thin plastic film, food wrapping, garbage bags and bubble wrap packaging.
Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios
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