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Paper Bag and Other Paper Product Manufacturing in Australia - Market Research Report (2014-2029)

Shelley Roque Shelley Roque Melbourne, Australia Last Updated: February 2024 ANZSIC C1528

Revenue

$903.7m

2024-25

$913.4m

Past 5-Year Growth

Profit

$XX.Xm

Employees

3,036

Businesses

204

Wages

$XXX.Xm

Paper Bag and Other Paper Product Manufacturing in Australia industry analysis

Rising environmental awareness is drastically redefining many industries, with paper bags and other paper product manufacturing taking swift strides. The public sector's push against single-use plastics has catalysed new opportunities for paper product manufacturers. However, the pandemic has resulted in a significant decline in market demand, especially from severely impacted downstream segments like retail and construction. Although demand is slowly creeping back up as restrictions ease, industry revenue has yet to reach pre-pandemic levels, with an annualised decline of 6.6% expected over the five years through 2023-24. This trend includes an anticipated decrease of 2.9% in the current year, to $903.7 million.

Trends and Insights

  • Single-use plastic bag bans in Australia have boosted sales of paper bags and other paper products. However, this boost has also supported substitutes centred around environmental and sustainable practices like re-usable plastic and canvas bags, offsetting growth opportunities.
  • Cafes, restaurants and takeaway food services make up the majority of demand from downstream markets. The hospitality sector will grow as pandemic restrictions ease, benefiting demand from takeaway and catering services.
  • Legislation in Victoria will ban native tree logging from 2030, creating a timber shortage. The last white paper mill in Australia closed in 2023, sparking concerns of rising prices for white paper.
  • Offshoring production is a cost-saving strategy that larger domestic companies have adopted to maintain competitiveness. Overseas manufacturing is typically less costly and benefits from relaxed logging regulations, making resources and materials more easily accessible.

Access hundreds of analysis and data

  • Market estimates from 2014-2029
  • Critical performance data and rankings
  • Detailed analysis of competitive forces and the external environment
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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has declined at a CAGR of 6.6 % over the past five years, to reach an estimated $903.7m in 2024.

Trends and Insights

Domestic manufacturers have faced intense import competition as timber shortages raise prices

  • Over the past few years, domestic manufacturers have been grappling with escalating input costs, leading to wage cuts and reduced employment.
  • Additional trends and insights available with purchase
Paper Bag and Other Paper Product Manufacturing in Australia
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

Recovering downstream markets are set to strengthen industry revenue

  • The industry’s performance is strongly associated with trends in downstream markets, like construction, food services and retail trade industries. As these markets recover from the pandemic over the next few years, their demand for paper products is set to lift, supporting growth in industry revenue.

Biggest companies in the Paper Bag and Other Paper Product Manufacturing in Australia

Company
Market Share (%)
2024
Revenue ($m)
2024
Detmold Group
338.7
Opal
146.0
Labelmakers
88.9

To view the market share and analysis for all 4 top companies in this industry, view purchase options.

Products & Services Segmentation

Paper Bag and Other Paper Product Manufacturing in Australia
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Adhesive labels, Moulded paper products and Paper bags and sacks. Adhesive labels is the largest segment of the Paper Bag and Other Paper Product Manufacturing in Australia.

Trends and Insights

Demand for adhesive labels in downstream markets has dampened

  • Adhesive labels are the industry's largest product segment, and include labels for food and beverage, pharmaceuticals and other manufacturing industries.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

Industry manufacturers produce paper bags and other paper products like adhesive labels, novelties, models, decorations and commissioned products across Australia. These manufacturers serve a wide range of industries and customers nationwide and internationally.

What's included in this industry?

Adhesive labelsMoulded paper productsPaper bags and sacksPaper noveltiesPaper modelsDecorationsCommissioned products

Companies

Detmold GroupOpalLabelmakers

Purchase this report to view all 4 major companies in this industry.

Related Terms

VIRGIN PAPERAUSTRALIAN PACKAGING COVENANTBIODEGRADABLEINDUSTRY 4.0

Industry Code

ANZSIC 2006

ANZSIC 1522 - Paper Bag and Other Paper Product Manufacturing in Australia

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

Single-use plastic bag bans in Australia have boosted sales of paper bags and other paper products. However, this boost has also supported substitutes centred around environm...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Cafes, restaurants and takeaway food services make up the majority of demand from downstream markets. The hospitality sector will grow as pandemic restrictions ease, benefiti...

In this chapter

  • Products & Services
  • Major Markets
  • International Trade

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level
  • Total imports, level and trend
  • Total exports, level and trend
  • Trade Balance

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024
  • International trade, including imports by country and exports by country

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services
  • Recent trends in import and export volumes, country of origin or destination, and expected future trends

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

Legislation in Victoria will ban native tree logging from 2030, creating a timber shortage. The last white paper mill in Australia closed in 2023, sparking concerns of rising...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each region in 2024
  • Number and share of revenue each region accounts for in 2024
  • Number and share of wages each region accounts for in 2024
  • Number and share of employees in each region in 2024

Detailed analysis

  • Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

Offshoring production is a cost-saving strategy that larger domestic companies have adopted to maintain competitiveness. Overseas manufacturing is typically less costly and b...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2019-2024
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

The larger companies are acquiring and consolidating to gain new products and processes. Recently, Labelmakers acquired Le Mac Australia, gaining its Linerless Labelling Syst...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2020 through 2024
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2024
  • Overview of Detmold Group's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Opal's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Labelmakers's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of revenue, market share and profit margin trend for one additional company

Detailed analysis

  • Description and key data for Detmold Group, and factors influencing its performance in the industry
  • Description and key data for Opal, and factors influencing its performance in the industry
  • Description and key data for Labelmakers, and factors influencing its performance in the industry
  • Description, key data and performance trends for one additional company

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

Fluctuating input costs and unstable downstream markets have caused revenue volatility. These factors vary with weather, consumption trends, the economic climate and other in...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2014-2029) 
  • Assistance historical data and forecast (2014-2029) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

Paper bags’ popularity has risen as an eco-friendly substitute for plastic bags, resulting in increased profitability. Despite pandemic-related key input price increases and ...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Investment vs. share of economy

Data tables

  • Cash Flow & Debt Service Ratios (2014-2029)
  • Revenue per Employee (2014-2029)
  • Revenue per Enterprise (2014-2029)
  • Employees per Establishment (2014-2029)
  • Employees per Enterprise (2014-2029)
  • Average Wage (2014-2029)
  • Wages/Revenue (2014-2029)
  • Establishments per Enterprise (2014-2029)
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Paper Bag and Other Paper Product Manufacturing industry in Australia in 2024?

The market size of the Paper Bag and Other Paper Product Manufacturing industry in Australia is $903.7m in 2024.

How many businesses are there in the Paper Bag and Other Paper Product Manufacturing in Australia industry in 2024?

There are 204 businesses in the Paper Bag and Other Paper Product Manufacturing industry in Australia, which has grown at a CAGR of 3.6 % between 2019 and 2024.

Has the Paper Bag and Other Paper Product Manufacturing industry in Australia grown or declined over the past 5 years?

The market size of the Paper Bag and Other Paper Product Manufacturing industry in Australia has been declining at a CAGR of 6.6 % between 2019 and 2024.

What is the forecast growth of the Paper Bag and Other Paper Product Manufacturing industry in Australia over the next 5 years?

Over the next five years, the Paper Bag and Other Paper Product Manufacturing industry in Australia is expected to grow.

What are the biggest companies in the Paper Bag and Other Paper Product Manufacturing market in Australia?

The biggest companies operating in the Paper Bag and Other Paper Product Manufacturing market in Australia are Detmold Group, Opal and Labelmakers

What does the Paper Bag and Other Paper Product Manufacturing in Australia include?

Adhesive labels and Moulded paper products are part of the Paper Bag and Other Paper Product Manufacturing industry.

Which companies have the highest market share in the Paper Bag and Other Paper Product Manufacturing in Australia?

The company holding the most market share in Australia is Detmold Group.

How competitive is the Paper Bag and Other Paper Product Manufacturing industry in Australia?

The level of competition is high and steady in the Paper Bag and Other Paper Product Manufacturing industry in Australia.

Related Industries

Widen your competitive advantage with related industries

Competitors

  • Plastic Bag and Film Manufacturing in Australia

Complementors

  • Cut and Sewn Textile Product Manufacturing in Australia
  • Paperboard Container Manufacturing in Australia
  • Paper Product Wholesaling in Australia

International industries

  • Coated & Laminated Paper Manufacturing in the US
  • Paper Product Manufacturing in the US
  • Coated & Laminated Paper Manufacturing in Canada
  • Paper Product Manufacturing in Canada
  • Cardboard Packaging & Paper Bag Manufacturing in the UK

View all industries in Australia

Methodology

How are IBISWorld reports created?

IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in Australia include:

  • Australian Bureau of Statistics
  • Australian Taxation Office
  • Australian Securities & Investments Commission

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

Learn more about our methodology and data sourcing on the Help Center.