Plastic Foam Product Manufacturing in Australia Industry Market Research Report Now Updated by IBISWorld
Melbourne, Australia (PRWEB) September 12, 2014 -- Operators in the Plastic Foam Product Manufacturing industry in Australia have performed poorly over the past five years. Industry revenue is expected to fall at an annualised 6.1% over the five years through 2014-15. According to IBISWorld industry analyst Spencer Little, “the significant fall in revenue over the period has been primarily due to weak demand from downstream manufacturers that use plastic foam as key inputs.” Polyurethane plastic foams are used to manufacture beds, mattresses, pillows, couches and other furniture. Construction firms also use a range of plastic foam products as building insulation, and motor vehicle manufacturers use polyurethane foam in car seats, headrests, armrests and other panels. Additionally, food processors package fruit, vegetables and other food products in polystyrene boxes.
Many of these downstream manufacturers have faced rising import competition, particularly over the three years through 2012-13 when the strong Australian dollar made imported goods comparatively cheaper. “The industry's performance has since improved slightly, due to greater demand from furniture manufacturers and steady demand from food processors,” says Little. As a result, revenue is expected to grow by 2.1% in 2014-15, to reach $627.1 million. The Plastic Foam Product Manufacturing industry exhibits medium levels of market share concentration. Major players include Australian Comfort Group Holdings Pty Ltd, Joyce Foam Pty Ltd, Huhtamaki Holdings Pty Limited and Huntsman Corporation Australia Pty Limited.
Over the next five years, the industry's decline is expected to slow slightly. Growth in the number of dwelling commencements is anticipated to assist industry operators, as more polyurethane and polystyrene foam products will be demanded as insulation. However, the expected exits of Ford, Holden and Toyota from the downstream Motor Vehicle Manufacturing industry in 2016-17 and 2017-18 are projected to severely affect industry firms. Demand for plastic foam used in car seats, headrests and armrests will fall in line with the cessation of a large share of domestic motor vehicle production. Steady growth from other downstream markets, such as furniture manufacturers and food processors, is expected to slightly offset this drop in demand from motor vehicle manufacturers.
For more information, visit IBISWorld’s Plastic Foam Product Manufacturing industry in Australia report page.
Companies in the industry primarily manufacture polymer foam products. Firms that mainly manufacture polymer filler products that are used to fill in wall cavities, insulate walls, and cushion swimming pools and spas are also included in the industry.
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IBISWorld industry Report Key Topics
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
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.
Gavin Smith, IBISWorld, http://www.ibisworld.com, +61 396553838, [email protected]
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