Australian businesses are well placed to enjoy the benefits of a surge in the global flexible packaging industry over the next five years, according to a new report.
The industry is set to grow from $US98 billion in 2016 to $US125 billion in 2021 at an annual growth rate more than five percent, says a report by Markets and Markets titled Flexible Packaging Market by Material (Plastic Film, Paper, Aluminum), Printing Technology (Flexography, Rotogravure, Digital), Type (Stand-Up Pouches, Retort Pouches), Application (Food & Beverages, Healthcare, Cosmetics & Toiletries) - Global Forecast to 2021.
The report identifies Australia and the Asia-Pacific as the region likely to experience the highest levels of growth - primarily due to increased demand for goods such as food and beverages caused by increasing disposable income and urbanisation in China and India. Some of the end-user industries identified as driving the increased demand include food and beverages, healthcare, cosmetics and toiletries and household products.
While much of the growth in the Asia-Pacific region will take place in China and India, there is also a significant opportunity for Australian export industries to take advantage of the increased demand.
"This report has implications for any Australian business that uses flexible packaging," said a spokesperson for ITT Jetpack, a leading Australian packaging machinery and materials supplier. "The consumer demand for high-quality, innovative packaging means that any business with outdated packaging will be left behind.
"Packaging machinery has become sufficiently advanced and compact to be accessible to even small and medium sized operations. Packaging machinery also has the potential to provide a tangible return on investment, including increased revenue and sales, and reduced cost of production."