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Packaging Services in Australia Industry Market Research Report Now Updated by IBISWorld
  • USA - English


News provided by

IBISWorld

Apr 14, 2015, 09:00 ET

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IBISWorld Market Research
IBISWorld Market Research

Wholesalers are expected to be the silver lining for the Packaging Services industry, especially as they become increasingly reliant on the industry to prepare and repackage imported goods for sale in Australia.

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Melbourne, Australia (PRWEB) April 14, 2015 -- Over the five years through 2014-15, the Packaging Services industry is expected to perform well despite poor upstream manufacturing conditions. The fortunes of the industry are largely tied to the performance of domestic manufacturing. However, as domestic manufacturing conditions have become tougher, manufacturers have increasingly outsourced non-core activities such as packaging. As a result, industry revenue is expected to increase at an annualised 0.4% over the five years through 2014-15. In 2014-15, revenue is forecast to grow by 2.1% to total $1.5 billion as more upstream manufacturers use third-party packaging services. Prior to 2009-10, the industry's performance was heavily influenced by the global financial crisis, which reduced manufacturing demand due to poor economic conditions. As the Australian economy teetered on the edge of recession, upstream manufacturers either closed down or offshored some production, leading to low industry revenue growth. According to IBISWorld industry analyst Ryan Lin, “since 2009-10, the competitive manufacturers that have continued to operate have increasingly sought new ways to reduce overheads, including through the outsourcing of packaging operations to industry specialists.”

Over the next five years, the industry's performance is expected to be affected by the slowing of upstream manufacturing. While opportunities will remain for the industry due to the growing trend for companies to outsource their packaging operations, competition among industry players and the threat of imports decimating local manufacturing will weigh against the industry. “Wholesalers are expected to be the silver lining for the industry, especially as they become increasingly reliant on the industry to prepare and repackage imported goods for sale in Australia,” says Lin. The continual fall of the dollar will also benefit the industry as manufacturing and export conditions improve.

The Packaging Services industry exhibits a low level of market share concentration. Due to the highly diverse nature of industry operations, with a large number of highly specialised operators, industry players face difficulty in building substantial economies of scale. The majority of industry operators are relatively small, serving a specialised purpose according to the packaging specifications of their clients. It would be difficult for a chemicals contract packer to alter its machinery and services to cater to food and beverage manufacturers. This results in a highly fragmented industry, where the fortunes of industry operators are highly dependent on the upstream demand of their clients. Over the past five years, the level of concentration has been declining due to the proliferation of specialised and niche packaging services. In addition, upstream manufacturers continue to feel pressure from cheaper and increasingly higher quality imports, causing them to lose out to importers. Despite this, discerning manufacturers are expected to increasingly seek out cost savings in the short term.

For more information, visit IBISWorld’s Packaging Services industry in Australia report page.

Companies in this industry pack goods in bottles, cans, cartons, collapsible tubes, plastic sachets, plastic film or bags, or other containers or materials on a contract or fee basis. Activities excluded from this industry include packaging of agricultural produce, food, beverages and tobacco.

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

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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