plastics packaging in australia volume 1: rigid packaging ...€¦ · “creativity is the saviour...

Extract to indicatE thE gEnEral naturE of thE rEport

“Creativity is the saviour of the troubled plastics packaging industry, besieged by environmental issues and rising costs. Those who continue to create innovative products in response to government, business and consumer demands will be the winners.”

pacKaging

Plastics Packaging in AustraliaVolume 1: Rigid Packaging14th Edition, 2008 – 2010

Extract to indicatE thE gEnEral naturE of thE rEport

© BIS Shrapnel Pty Limited January 2009

The information contained in this report is the property of BIS Shrapnel Pty Limited and is confidential.

All rights reserved.

No part of this report may be reproduced or transmitted in any form, nor may any part of or any information contained in this report be distributed or disclosed to any person who is not a full-time employee of the Subscriber without the prior written consent of BIS Shrapnel Pty Limited. The Subscriber agrees to take all reasonable measures to safeguard this confidentiality. The Subscriber may not, under any circumstances, use information in this report for promotional purposes.

Note: Although great care has been taken to ensure accuracy and completeness in this project, BIS Shrapnel Pty Ltd has not independently verified, and does not accept responsibility for, the completeness and accuracy of the factual information on which its opinions and assumptions are based, which information has been derived from public authorities or government bodies.

M4968/GT/JL/sf

BIS Shrapnel contact: Gary Tilsley BIS Shrapnel Pty Limited Level 8, 181 Miller Street North Sydney NSW 2060 Australia Tel. +61 (0)2 9959 5924 Fax +61 (0)3 9959 5795 email: [email protected]

Acknowledgement

This report has been prepared by Joe Leong with assistance from Gary Tilsley. Administrative support was provided by Sylvia Foo.

Contents Plastics Packaging in Australia, 2008-2010

© BIS Shrapnel Pty Ltd 2009

Contents

1 INTRODUCTION ............................................................................................................ 1

2 KEY FINDINGS .............................................................................................................. 5

2.1 Packaging market overview ................................................................................................ 7

2.2 Rigid plastics packaging...................................................................................................... 8

2.3 Outlook to 2010 – by market sector .................................................................................. 12

3 MARKET OVERVIEW.................................................................................................. 15

3.1 Polymer market .................................................................................................................17

3.2 Packaging and the plastics industry .................................................................................. 20

3.3 Rigid plastics packaging.................................................................................................... 23

3.4 Market trends..................................................................................................................... 26

3.5 Packaging Covenant progress .......................................................................................... 31

4 TARGET MARKETS – END-USE APPLICATIONS .................................................... 33

4.1 Overview of end-use markets............................................................................................ 35

4.2 Food packaging .................................................................................................................37

4.3 Beverage packaging.......................................................................................................... 92

4.4 Consumer non-durables..................................................................................................110

4.5 Industrial products ...........................................................................................................134

5 TARGET MARKETS: MOULDING TECHNOLOGIES............................................... 151

5.1 Summary ......................................................................................................................... 153

5.2 End-user demand............................................................................................................ 155

5.3 Blow moulding .................................................................................................................156

5.4 Injection moulded products .............................................................................................159

5.5 Thermoforming ................................................................................................................167

5.6 Extruded and expanded PS ............................................................................................170

5.7 Other Technologies – Extruded laminations/roto moulding ............................................ 173

6 TARGET MARKETS – POLYMER TYPES................................................................ 175

6.1 Market overview ..............................................................................................................177

6.2 HDPE............................................................................................................................... 178

6.3 PET.................................................................................................................................. 179

6.4 PP.................................................................................................................................... 181

6.5 PS/EPS............................................................................................................................ 183

6.6 PVC ................................................................................................................................. 184

6.7 LDPE ............................................................................................................................... 185

Plastics Packaging in Australia, 2008-2010 Contents


7 COMPETITIVE INSIGHT – CONVERTERS............................................................... 187

7.1 Suppliers used.................................................................................................................191

7.2 Major suppliers ................................................................................................................192

7.3 Suppliers’ profiles ............................................................................................................193

7.4 Customer retention..........................................................................................................222

7.5 Selection criteria .............................................................................................................. 223

7.6 Price increases experienced ........................................................................................... 232

7.7 Problems associated with the quality of plastic containers ............................................. 234

7.8 Contractual commitments................................................................................................ 235

7.9 Supplier changed in the last 12 months ..........................................................................236

7.10 Awareness of any recycling or environmental related issues ......................................... 237

7.11 Identification of major threats facing industry today ........................................................ 240

7.12 Identification of major opportunities for industry today.................................................... 243

7.13 Change in demand by polymer .......................................................................................244

8 COMPETITIVE INSIGHT – RESIN/POLYMER SUPPLIERS..................................... 247

8.1 Supplier Used ..................................................................................................................252

8.2 Suppliers’ ratings .............................................................................................................258

8.3 Price increases by polymer type .....................................................................................265

8.4 Is the market more competitive than 12 months ago? .................................................... 268

8.5 Contractual commitments................................................................................................ 269

8.6 Problems associated with polymer suppliers ..................................................................270

8.7 Major threats facing the industry today ...........................................................................271

8.8 Major opportunities facing industry..................................................................................272

8.9 Change in demand by polymer .......................................................................................273

9 OUTLOOK TO 2010................................................................................................... 275

9.1 Economic outlook ............................................................................................................277

9.2 Industry outlook ...............................................................................................................279

9.3 Rigid plastics packaging outlook .....................................................................................281

10 APPENDIX 1: SURVEY QUESTIONNAIRES............................................................ 285

11 APPENDIX 2: LIST OF RESPONDENTS.................................................................. 325

12 APPENDIX 3: IMPORTS AND EXPORTS................................................................. 333

List of Tables Plastics Packaging in Australia, 2008-2010


List of Tables

Table 2.1: Rigid plastics and total packaging, 2005-2008 (Value in $ million)..................................... 7 Table 2.2: Rigid plastics packaging, by technology, 2008 ................................................................... 8 Table 2.3: Rigid plastic packaging, 2008-2010f (tonnes) ................................................................... 12 Table 2.4: Rigid plastics packaging, 2008-2010f (tonnes).................................................................. 13 Table 3.1: Total turnover for plastics products, 1998-2008................................................................ 17 Table 3.2: Total resin consumption, 1998-2008e................................................................................ 17 Table 3.3: Total resin production and consumption (Kt), 2000-2008e................................................ 18 Table 3.4: Australian capacity for resin production – 2007 (Kt) ......................................................... 18 Table 3.5: Imports of major polymer types (Kt), 2000-2008 (year ended December)........................ 19 Table 3.6: Turnover of selected packaging manufacturing ($ million), 2002-2007 ............................ 20 Table 3.7: Exports of food and beverages, 2004/05 to 2007/08 ($ million) ....................................... 21 Table 3.8: Selected imports of highly processed food & beverages ($ million) ................................. 21 Table 3.9: Polymer usage in packaging (Kt), 2001-2008e.................................................................. 22 Table 3.10: Rigid plastics and total packaging, 2002-2009e (Value in $ million).................................. 23 Table 3.11: Rigid plastics and total packaging, 2005-2010e (Volume in tonnes)................................. 23 Table 3.12: Import prices as per year ended December, 1997-2008 ($/tonnes – fob) ........................ 24 Table 3.13: Import price indices (fob) of major polymers (base 1997 = 100)....................................... 24 Table 3.14: Price growth of major polymer types, 2005-2008 (percentage) ........................................ 25 Table 3.15: Market price and price growth of major polymer types, 2003-2009 .................................. 25 Table 4.1: Rigid packaging demand by market sector .......................................................................35 Table 4.2: Demand and value projections by market segment and sectors ...................................... 36 Table 4.3: Market size – Food packaging (2008-2010)...................................................................... 37 Table 4.4: Market size – Milk (2008-2010) ......................................................................................... 38 Table 4.5: Australian milk market (sales), 1994/95-2008/09 (million litres) ....................................... 38 Table 4.6: Per capita consumption of major milk based products, 2000/01-2007/08 ........................ 39 Table 4.7: Supermarket demand for fresh milk, 2005-2008e.............................................................. 39 Table 4.8: Supermarket market shares of leading milk processors, 2005-2007................................ 40 Table 4.9: Retail UHT packaging by material purchased through supermarkets,

2002–2008, million units.................................................................................................... 40 Table 4.10: Sales of milk by channel, 2007.......................................................................................... 41 Table 4.11: Milk packaging size by channel, 2007............................................................................... 41 Table 4.12: Demand for milk by type of container in supermarkets (volume in litres) ......................... 41 Table 4.13: Demand for milk by type of container in supermarkets (volume in units) ......................... 42 Table 4.14: Demand for plastic milk packaging (made in Australia) by polymer type,

volume and value, 2007 .................................................................................................... 42 Table 4.15: Projected polymer demand for milk products in Australia, 2005-2010f ............................. 44 Table 4.16: Market size – Cream/ice cream (2008-2010).................................................................... 45 Table 4.17: Historic demand for cream products, 2004-2007, tonnes ................................................. 45 Table 4.18: Supermarket demand for ice cream in tubs, 2005-2008................................................... 45 Table 4.19: Corporate shares for tub ice cream in supermarkets, 2005-2007..................................... 46 Table 4.20: Foodservice and route trade demand for bulk ice cream, 2005-2007 .............................. 46 Table 4.21: Demand for cream/ice cream products (made in Australia)

by polymer type, volume and value, 2007......................................................................... 47 Table 4.22: Projected polymer demand for cream/ice cream products (made in Australia)

2005-2010f.........................................................................................................................48 Table 4.23: Market size – Dairy blends, yogurt and other diary products (2008-2010) ....................... 49 Table 4.24: Supermarket sales of dairy spreads, yogurt and similar products, 2005-2008................. 50

Plastics Packaging in Australia, 2008-2010 List of Tables


Table 4.25: Other dairy – Foodservice demand, 2005-2007................................................................ 50 Table 4.26: Other dairy – Route trade, 2005-2007............................................................................... 50 Table 4.27: Key corporate shares in dairy spreads, yogurt and similar products ................................ 51 Table 4.28: Summary of consumer and foodservice plastics packaging designs, sizes,

manufacturing technologies and polymers used............................................................... 52 Table 4.29: Demand for plastics packaging (made in Australia) used for dairy spreads,

yogurt and similar products by polymer type, volume and value, 2007 ............................ 53 Table 4.30: Projected polymer demand for dairy, yogurt and similar products, 2005-2010f................ 53 Table 4.31: Market size – Spreads (2008-2010) .................................................................................. 54 Table 4.32 Supermarket demand for spreads, 2005-2008 ................................................................. 54 Table 4.33: Foodservice demand for spreads, 2005-2007 .................................................................. 54 Table 4.34: Route trade demand for spreads, 2005-2007 ................................................................... 54 Table 4.35: Key corporate shares for spreads in supermarkets, 2005-2007 ....................................... 55 Table 4.36: Demand for plastic containers (made in Australia) for spreads

by polymer type, volume and value, 2007......................................................................... 56 Table 4.37: Demand for plastic containers for spreads (made in Australia) by polymer type and

volume, 2005-2010f ........................................................................................................... 56 Table 4.38: Market size – Sauces and condiments (2008-2010)......................................................... 57 Table 4.39: Supermarket demand for sauces and condiments, 2005-2008 ........................................ 57 Table 4.40: Plastic packaging for sauces and condiments – Supermarket ......................................... 58 Table 4.41: Sauces and condiments – Corporate shares, 2005-2007................................................. 59 Table 4.42: Sauces and condiments – Foodservice channel, 2005-2007 ........................................... 60 Table 4.43: Sauces and condiments – Route trade channel, 2005-2007 ............................................ 60 Table 4.44: Demand for sauces and condiments packaging (made in Australia)

by polymer type, volume and value, 2007......................................................................... 62 Table 4.45: Demand for plastics packaging (made in Australia) for sauces and condiments

by polymer type and volume, 2005-2010f ......................................................................... 63 Table 4.46: Market size – Miscellaneous foods (2008-2010)............................................................... 64 Table 4.47: Supermarket demand for miscellaneous foods, 2005-2008.............................................. 65 Table 4.48: Plastic packaging for miscellaneous foods – Supermarket............................................... 65 Table 4.49: Miscellaneous foods – Key corporate shares, 2005-2007 ................................................ 66 Table 4.50: Demand for miscellaneous foods packaging by polymer type, volume and value,

2007................................................................................................................................... 68 Table 4.51: Demand for plastics packaging (made in Australia) for miscellaneous foods

by polymer type and volume, 2008-2010f ......................................................................... 69 Table 4.52: Market size – Bakery and confectionery products (2008-2010)........................................ 70 Table 4.53: Supermarket demand for bakery and confectionery products, 2005-2008....................... 70 Table 4.54: Key corporate shares for bakery and confectionery products, 2005-2007 ....................... 71 Table 4.55: Rigid plastics packaging demand (made in Australia) for bakery and confectionery

products by polymer type, volume and value, 2007.......................................................... 73 Table 4.56: Rigid plastics packaging demand (made in Australia) for bakery and confectionery

products by polymer type, volume and value, 2005-2010f................................................ 73 Table 4.57: Market size – Produce (2008-2010) .................................................................................. 74 Table 4.58: Produce production volumes, 2005-2007 ......................................................................... 74 Table 4.59: Export volumes of fresh/chilled fruit and vegetables packed in EPS Boxes,

2005-2007 ......................................................................................................................... 75 Table 4.60: Export volumes of fresh/chilled fruit and vegetables packed in

corrugated board cartons, 2005-2007............................................................................... 75



Table 4.61: Production of produce by pack type channelled through retail and foodservice outlets, 2005-2007 ......................................................................................... 77

Table 4.62: Exports of produce by pack type channelled 2005-2007 .................................................. 78 Table 4.63: Demand for produce packaging (made in Australia) by polymer type,

volume and value, 2007 .................................................................................................... 78 Table 4.64: Demand for produce packaging (made in Australia) by polymer type and volume,

2005-2010f.........................................................................................................................79 Table 4.65: Market size – Red meat, chicken and fish (2008-2010).................................................... 80 Table 4.66: Meat production, exports and consumption by type (Kt)................................................... 80 Table 4.67: Share of retail meat demand, 2004-2007 (%) ................................................................... 81 Table 4.68: Seafood production by type (Kt)........................................................................................ 81 Table 4.69: Seafood exports by type (Kt)............................................................................................. 81 Table 4.70: Estimated demand of meat products through supermarkets(1), 2005-2007 ...................... 83 Table 4.71: Estimated EPS packs for local demand & exports of seafood, 2005 to 2007................... 83 Table 4.72: Rigid plastics packaging demand (made in Australia) for meat and fish products

by polymer type, volume and value, 2007......................................................................... 83 Table 4.73: Rigid plastics packaging demand (made in Australia) for meat and fish products

by polymer type and volume, 2005-2010f ......................................................................... 84 Table 4.74: Market size – Portion control packs (2008-2010).............................................................. 85 Table 4.75: Portion control demand packed in rigid plastics packaging expressed in units,

2003-2007 ......................................................................................................................... 85 Table 4.76: Demand for portion control packaging (made in Australia) by polymer type,

volume and value, 2007 .................................................................................................... 86 Table 4.77: Forecast demand for portion control packaging (made in Australia)

by polymer type and volume, 2005-2010f ......................................................................... 86 Table 4.78: Market size – Disposable packaging for food/beverages (2008-2010)............................. 87 Table 4.79: Disposable cups for the Office supply sector, 2005-2007................................................. 87 Table 4.80: Café demand for disposable cups and lids, 2005-2007.................................................... 88 Table 4.81: Fast food industry demand for disposable cups and lids, 2005-2007............................... 88 Table 4.82: Ethnic food takeaway demand for tubs, 2005-2007.......................................................... 89 Table 4.83: Disposable packaging demand in airline catering, 2005-2007 ......................................... 89 Table 4.84: Demand for disposable plastics packaging (made in Australia) by polymer type,

volume and value, 2007 .................................................................................................... 90 Table 4.85: Forecast demand for disposable plastics packaging (made in Australia)

by polymer type and volume, 2005-2010f (tonnes) ........................................................... 91 Table 4.86: Market size – Beverage packaging (2008-2010) .............................................................. 92 Table 4.87: Market size – Carbonated (2008-2010)............................................................................. 92 Table 4.88: Australian carbonated beverage production (million litres), 2000-2008............................ 92 Table 4.89: Soft drink demand through supermarkets (million litres), 2000-2008 ............................... 93 Table 4.90: Cola and non-cola through supermarkets in value and volume terms, 2005-2007 .......... 93 Table 4.91: Soft drinks – Corporate shares %, 2005-2007 .................................................................. 93 Table 4.92: Australian carbonated beverage production by pack material (million litres).................... 94 Table 4.93: Demand for carbonated beverage containers by polymer type, 2007 .............................. 95 Table 4.94: Demand for carbonated beverage containers (made in Australia)

by polymer type and volume, 2005-2010f (tonnes) ........................................................... 95 Table 4.95: Market size – Still and mineral water (2008-2010)............................................................ 96 Table 4.96: Australian packaged water production (million litres), 2005 to 2008................................. 96 Table 4.97: Still and mineral water demand in the supermarket channel, 2005-2008......................... 97 Table 4.98: Still water share by brand in the supermarket channel ..................................................... 97



Table 4.99: Mineral water share by brand in the supermarket channel ............................................... 97 Table 4.100: Demand for still and mineral water packaging (made in Australia)

by polymer type, volume and value, 2007......................................................................... 98 Table 4.101: Demand for still and mineral water packaging (made in Australia)

by polymer type, and volume, 2005-2010f ........................................................................ 99 Table 4.102: Market size – Energy and sports drinks (2008-2010) ..................................................... 100 Table 4.103: Sport and energy drink s production (million litres), 2005 to 2008.................................. 100 Table 4.104: Sport and energy drinks demand in the supermarket channel, 2005-20 ........................ 100 Table 4.105: Sport drink market share by brand (supermarket), 2005-2007 ....................................... 101 Table 4.106: Energy drink market share by brand in the (supermarket), 2005-2007 .......................... 101 Table 4.107: Demand for sports drinks packaging (made in Australia) by polymer type,

volume and value, 2007 ..................................................................................................102 Table 4.108: Projected polymer demand for sports drinks, 2005-2010f............................................... 102 Table 4.109: Market size – Cordial (2008-2010) .................................................................................. 103 Table 4.110: Sales of Cordial in supermarkets, 2005 to 2008 .............................................................103 Table 4.111: Cordial – Value and volume brand shares in supermarkets, 2005-2007........................ 103 Table 4.112: Cordial – Volume in plastic unit by brand shares in supermarkets ................................. 103 Table 4.113: Cordial – Demand for foodservice and route trade demand, 2005-2007........................ 104 Table 4.114: Demand for cordial packaging (made in Australia) by polymer type,

volume and value, 2007 ..................................................................................................104 Table 4.115: Demand for cordial plastics packaging (made in Australia) by polymer type and

volume, 2005-2010f (tonnes)........................................................................................... 105 Table 4.116: Market size – Fruit juice (2008-2010).............................................................................. 106 Table 4.117: Fruit juice/drink supermarket demand, 2005-2007.......................................................... 106 Table 4.118: Self table fruit juice/drink by packaging type (Supermarket 2007).................................. 106 Table 4.119: Fruit juice/drink – Corporate shares in supermarket, 2005-2007.................................... 107 Table 4.120: Fruit juice– Value and volume in the route trade sector, 2005-2007 .............................. 107 Table 4.121: Fruit juice– value and volume in the foodservice sector, 2005-2007 .............................. 108 Table 4.122: Demand for fruit juice packaging (made in Australia) by polymer type,

volume and value, 2007 ..................................................................................................109 Table 4.123: Demand for fruit juice packaging (made in Australia) by polymer type and volume,

2005-2010f.......................................................................................................................109 Table 4.124: Market size – Consumer non-durables (2008-2010)....................................................... 110 Table 4.125: Market size – Household and industrial cleaning chemicals (2008-2010) ...................... 111 Table 4.126: Supermarket sales of household chemicals, 2005-2008e ............................................... 111 Table 4.127: Market shares of household and industrial cleaning chemicals, 2005-2007................... 112 Table 4.128: Detergents and cleaning compound production statistics, 2002-2007 ........................... 113 Table 4.129: Plastic packaging for household cleaning products (Supermarket) ................................ 114 Table 4.130: Demand for plastics packaging for household & industrial cleaning chemicals

(made in Australia) by polymer type, volume and value, 2007 ....................................... 116 Table 4.131: Demand for plastics packaging for household & industrial cleaning chemicals

(made in Australia) by polymer type and volume, 2005-2010f ........................................ 117 Table 4.132: Market size – Pharmaceuticals (2008-2010)................................................................... 118 Table 4.133: Demand for dietary supplements, 2005-2007 .................................................................118 Table 4.134: Key brand shares of dietary supplements, 2005-2007.................................................... 119 Table 4.135: Estimate of the volume of plastics packaging used for pharmaceuticals,

2005-2007 ....................................................................................................................... 120 Table 4.136: Demand for plastics packaging for pharmaceutical products (made in Australia)

by polymer type, volume and value, 2007....................................................................... 121



Table 4.137: Demand for plastics packaging for pharmaceutical products (made in Australia) by polymer type and volume, 2005-2010f (tonnes) .........................................................122

Table 4.138: Market size – Personal care products (2008-2010) ........................................................123 Table 4.139: Supermarket sales of personal care products, 2005-2008 ............................................. 123 Table 4.140: Key corporate shares in personal care products, 2005-2007 ......................................... 124 Table 4.141: Plastic packaging for personal care products– Supermarket (2007 ............................... 125 Table 4.142: Import value of personal car products ($million), 2003-2007.......................................... 126 Table 4.143: Cosmetic and toiletry preparation production statistics, 2004-2007 ............................... 127 Table 4.144: Market Share of personal care and toiletry products by channels 2007 .........................127 Table 4.145: Demand for plastics packaging for personal care products (made in Australia)

by polymer type, volume and value, 2007....................................................................... 129 Table 4.146: Demand for plastics packaging for personal care products (made in Australia)

by polymer type and volume, 2005-2010f .......................................................................129 Table 4.148: Supermarket sales of aerosol products, 2005-2007 ....................................................... 130 Table 4.149: Local production estimates for aerosol applied products, 2003-2007 (million units) ...... 131 Table 4.150: Demand for plastic components used for aerosol packaging (made in Australia)

by polymer type, volume and value, 2007....................................................................... 131 Table 4.151: Forecast demand for plastic components used for aerosol packaging

(made in Australia) by polymer type and volume, 2005-2010f ........................................ 131 Table 4.152: Market size – Blister packaging (2008-2010)..................................................................132 Table 4.153: Demand for blister packaging (made in Australia) by polymer type,

volume and value, 2007 ..................................................................................................132 Table 4.154: Forecast demand for blister packaging (made in Australia) by polymer type

and volume, 2005 and 2010f ...........................................................................................133 Table 4.155: Market size – Industrial (2008-2010)............................................................................... 134 Table 4.156: Market size – Agricultural and industrial chemicals (2008-2010).................................... 135 Table 4.157: Farm Production for the crops sector, 2005 to 2009f, $million........................................ 135 Table 4.158: Production of agricultural chemical products, 2003-2007 ...............................................136 Table 4.159: Imports of carboys, bottles and flasks, year ended December ....................................... 137 Table 4.160: Estimate of rigid plastic container demand in the Agricultural and

Industrial market sectors, 2005-2007.............................................................................. 138 Table 4.161: Demand for plastics packaging (made in Australia) for agricultural &

industrial chemical products by polymer type, volume and value, 2007 ......................... 138 Table 4.162: Demand for plastics packaging (made in Australia) for agriculture &

industrial chemical products by polymer type and volume, 2005-2010f.......................... 139 Table 4.163: Market size – Petroleum Products (2008-2010)..............................................................140 Table 4.165: Demand for plastics packaging for petroleum products (made in Australia)

by polymer type, volume and value, 2007....................................................................... 141 Table 4.166: Demand for plastics packaging for petroleum products (made in Australia)

by polymer type and volume, 2005-2010f .......................................................................142 Table 4.167: Market size – Building and construction products (2008-2010) ...................................... 143 Table 4.168: Value of work done of total dwelling and building, 2001-2010

(Constant 2005/06 prices) ...............................................................................................143 Table 4.169: Demand for selected paint categories, 2005-2007 ......................................................... 144 Table 4.170: Demand for plastic components used for building and construction

product packaging (made in Australia), 2005-2007 (million units) .................................. 145 Table 4.171: Estimate of current packing demand for stud/tile adhesives and other products,

2005-2007 ....................................................................................................................... 146



Table 4.172: Demand for plastics packaging for building & construction products (made in Australia) by polymer type, volume and value, 2007 ....................................... 147

Table 4.173: Forecast demand for plastics packaging used for building & construction products (made in Australia) by polymer type and volume, 2005-2010f ........................................ 147

Table 4.174: Market size – Building and construction products (2008-2010) ...................................... 148 Table 4.175: Consumption of PS and EPS in Australia (tonnes), 2004-2007e .................................... 148 Table 4.176: Demand for plastic components used for protective packaging (made in Australia)

by polymer type, volume and value, 2007....................................................................... 149 Table 4.177: Market size and growth of selected manufacturing Industries ($ millions)...................... 149 Table 4.178: Forecast demand for EPS protective packaging (made in Australia) by volume,

2005-2010f.......................................................................................................................150 Table 5.1: Rigid plastics packaging, by technology, 2008 ...............................................................153 Table 5.2: Exports of rigid packaging products, year ended December (2005 to 2008).................. 154 Table 5.3: Imports of rigid packaging products, year ended December (2005 to 2008) .................. 154 Table 5.4: Rigid plastics packaging by market category, 2008 (Kt) ................................................. 155 Table 5.5: Blow moulding market size, 2008....................................................................................156 Table 5.6: Blow moulded packaging market, 2008-2010f ................................................................ 156 Table 5.7: Market demand for blow moulded packaging expressed in units and

volume of polymer by market category, 2008-2010f (Kt)................................................. 157 Table 5.9: Injection moulding market size, 2008.............................................................................. 159 Table 5.10: Injection moulding market, 2008-2010f ........................................................................... 159 Table 5.11: Market demand for injection moulded packaging expressed in units and

volume of polymer by market category, 2008-2010f (Kt)................................................. 160 Table 5.12: Polymer demand for injection moulded packaging, 2008-2010f (tonnes) ....................... 161 Table 5.13: Closures market size, 2008............................................................................................. 161 Table 5.14: Closures market, 2008-2010f ..........................................................................................162 Table 5.15: Closures market demand expressed in units and volume of polymer

by market category, 2008-2010f ......................................................................................162 Table 5.16: Imports of stoppers, lids, caps & closures....................................................................... 163 Table 5.17: Polymer demand for closures, 2008-2010f (tonnes) ....................................................... 164 Table 5.18: Market size, 2008 ............................................................................................................ 165 Table 5.19: Pails market summary, 2008-2010f .................................................................................165 Table 5.20: Market demand for pails expressed in units and volume of polymer

by market category, 2008-2010f ......................................................................................166 Table 5.21: Market size, 2008 ............................................................................................................ 167 Table 5.22: Thermoformed packaging market, 2008-2010f ............................................................... 167 Table 5.23: Market demand for thermoformed packaging expressed in units and

volume of polymer by market category, 2008-2010f ....................................................... 168 Table 5.24: Polymer consumption for thermoformed packaging, 2008-2010f (tonnes) ..................... 168 Table 5.25: Market size, 2008 ............................................................................................................ 170 Table 5.26: Extruded and expanded PS packaging market, 2008-2010f........................................... 170 Table 5.27: Market demand for extruded and expanded PS packaging expressed in units

and volume of polymer by market category, 2008-2010f ................................................ 170 Table 5.28: Market size, 2008 ............................................................................................................ 173 Table 5.29: Extruded laminations and roto moulded packaging market, 2008-2010f ........................ 173 Table 5.30: Market demand for extruded and roto moulded products expressed in units

and volume of polymer by market category, 2008-2010f ................................................ 173 Table 6.1: Polymer demand for rigid packaging, (tonnes) ...............................................................177 Table 6.2: HDPE Demand by Technology (tonnes) ......................................................................... 178



Table 6.3: HDPE Demand by Sector (tonnes) ................................................................................. 178 Table 6.4: PET Demand by Technology (tonnes) ............................................................................179 Table 6.5: PET Demand by Sector (tonnes) ....................................................................................180 Table 6.6: PP Demand by Technology (tonnes) ..............................................................................181 Table 6.7: PP Demand by Sector (tonnes).......................................................................................182 Table 6.8: PS/EPS Demand by technology (tonnes) ....................................................................... 183 Table 6.9: PS/EPS Demand by sector (tonnes) ...............................................................................183 Table 6.10: PVC Demand by technology (tonnes) .............................................................................184 Table 6.11: PVC Demand by Sector (tonnes) ....................................................................................184 Table 6.12: LDPE Demand by technology (tonnes) ...........................................................................185 Table 6.13: LDPE Demand by sector (tonnes)...................................................................................185 Table 7.1: Respondents’ profile – Total sample (2008) ................................................................... 189 Table 7.2: Respondents’ profile – Rigid plastics packaging (2008) ................................................. 190 Table 7.3: Number of suppliers used (percentage of respondents) ................................................. 191 Table 7.4: Major rigid packaging suppliers....................................................................................... 192 Table 7.5: Estimated sales of rigid plastics packaging, by major supplier, 2008 ............................. 193 Table 7.6: Estimated sales of small rigid plastic packaging moulders by state, 2008 ..................... 195 Table 7.7: Main rigid plastic packaging suppliers by process type .................................................. 196 Table 7.8: Number of years as supplier (percentage of respondents) ............................................. 222 Table 7.9: Importance of factors (100 = very important) ..................................................................223 Table 7.10: Importance of factors, by main activity (100 = very important) ....................................... 224 Table 7.11: Importance of factors, by company size (100 = very important) ..................................... 224 Table 7.12: Number of ratings received, 2008 ...................................................................................225 Table 7.13: Summary of rigid packaging suppliers’ ratings (100 = excellent).................................... 225 Table 7.14: Level of price increases by polymer type experienced by end-users

(percentage of respondents ............................................................................................232 Table 7.15: Any problems with quality of plastic containers currently using?

(percentage of respondents) ...........................................................................................234 Table 7.17: Contract with supplier of plastic containers, (percentage of respondents) ..................... 235 Table 7.18: Duration of contract (percentage of respondents)........................................................... 235 Table 7.19: Changed supplier of rigid plastic packaging in the last 12 months

(percentage of respondents) ...........................................................................................236 Table 7.21: Aware of environmental issues impacting plastics packaging use

(percentage of respondents) ...........................................................................................237 Table 7.22: Are environment issues influential? (percentage of respondents) .................................. 237 Table 7.23: What environment issues? (percentage of respondents)................................................ 238 Table 7.24: Type of plastics packaging that could be affected (percentage of respondents)............ 238 Table 7.25: Environmental issues associated with the type of packaging ......................................... 239 Table 7.26: Major threats facing the industry today for rigid plastic packaging ................................. 240 Table 7.27: Other threats facing the industry today for rigid plastic packaging ................................. 240 Table 7.28: Examples of changes in packaging technologies ...........................................................241 Table 7.29: Major opportunities in the industry today ........................................................................243 Table 7.30: Change in demand by polymer in last 2 years by factors

(percentage of respondents) ...........................................................................................244 Table 7.31: Change in demand by polymer in last two years by industry.......................................... 245 Table 7.32: User Base of polymer by industry (percentage of respondents).....................................245 Table 8.1: Structure of total sample of converters/manufacturers ................................................... 249 Table 8.2: Structure of rigid plastic converter/manufacturer sample................................................ 250 Table 8.3: Technologies used by business size, (percentage of respondents) ............................... 250



Table 8.4: Main rigid applications produced by respondents (percentage of respondents) ............ 251 Table 8.5: Major rigid packaging manufacturing/converting suppliers .............................................252 Table 8.6: Importance of factors (percentage of respondents) ........................................................ 256 Table 8.7: Importance of factors, by technologies used (percentage of respondents) .................... 257 Table 8.8: Importance of factors, by technologies used (percentage of respondents) .................... 257 Table 8.9: Number of ratings received by major polymer/resin suppliers ........................................ 258 Table 8.10: Ratings of polymer/resin suppliers (100 = excellent) ...................................................... 258 Table 8.11: Level of price increases by polymer type experienced by converters

(percentage of respondents) ...........................................................................................265 Table 8.13: Is the market more competitive today than 12 months ago?

(percentage of respondents) ...........................................................................................268 Table 8.14: Reasons market is more competitive today (percentage of respondents)...................... 268 Table 8.15: Contract with supplier of polymers, 2008 (percentage of respondents).......................... 269 Table 8.16: Duration of contract with major supplier (percentage of respondents) ........................... 269 Table 8.17: Have problems with polymer suppliers, 2008 (percentage of respondents) ................... 270 Table 8.19: Major threats facing the industry today (percentage of respondents)............................. 271 Table 8.20: Major opportunities in the industry today ........................................................................272 Table 8.21: Change in demand by polymer in last 2 years by factor

(percentage of respondents) ...........................................................................................273 Table 9.1: Australia: key economic indicators 2005 to 2011............................................................ 277 Table 9.2: Rigid plastic packaging, 2008-2010f (tonnes) .................................................................281 Table 9.3: Rigid plastics packaging, 2008-2010f (tonnes)................................................................283

List of Charts Plastics Packaging in Australia, 2008-2010


List of Charts

Chart 2.1: Market share of rigid plastics packaging, 2005-2008 (percentage of total) ........................ 7 Chart 2.2: Rigid plastics packaging, by major moulding technology, 2008 (share of total tonnage) ... 8 Chart 2.3: Rigid plastics packaging, by market category, 2008 (share of total tonnage)..................... 8 Chart 2.4: Polymer consumption for rigid packaging, 2008 (percentage of total tonnage).................. 9 Chart 2.5: Import price indices (fob) of major polymers (Base 1997 = 100) ........................................ 9 Chart 2.6: Estimated share of rigid plastics packaging, by major supplier, 2008

(percentage of total) .......................................................................................................... 11 Chart 2.7: Rigid plastics packaging, 2008-2010f (tonnes).................................................................. 12 Chart 3.1: Australian resin production (percentage of total tonnage) ............................................... 18 Chart 3.2: Imports of major polymer types, 2007 (percentage of total).............................................. 19 Chart 5.1: Rigid plastics packaging, by major moulding technology, 2008

(share of total volume).....................................................................................................153 Chart 5.2: Major applications for blow moulded packaging, 2008

(percentage of total polymer weight) ............................................................................... 156 Chart 5.3: Major applications for injection moulding, 2008 (percentage of total polymer weight) ... 159 Chart 5.4: Major applications for closures, 2008..............................................................................163 Chart 5.5: Major applications for pails, 2008 (percentage of total polymer weight) ......................... 165 Chart 5.6: Major applications for thermoformed packaging, 2008

(percentage of total polymer weight) ............................................................................... 167 Chart 5.7: Major applications for extruded and expanded PS packaging, 2008

(percentage of total polymer weight) ............................................................................... 171 Chart 6.1: Polymer demand for rigid packaging, 2008 (percentage of total) ................................... 177 Chart 7.1: Estimated sales of rigid plastics packaging, by major converter, 2008

(percentage of total) ........................................................................................................194 Chart 7.2: Overall ratings (all factors) (100 = excellent)...................................................................226 Chart 7.3: Quality of packaging (100 = excellent) ............................................................................ 227 Chart 7.4: Reliability of delivery (100 = excellent)............................................................................ 227 Chart 7.5: Competitive price/value for money (100 = excellent) ......................................................227 Chart 7.6: Ability to respond to customers’ needs (100 = excellent)................................................ 228 Chart 7.7: Delivery lead time (100 = excellent) ................................................................................228 Chart 7.8: Handling of complaints (100 = excellent) ........................................................................ 228 Chart 7.9: Ability to handle cost reductions (100 = excellent) ..........................................................229 Chart 7.10: Acceptance of minimum orders (100 = excellent) ........................................................... 229 Chart 7.11: Efficiency with inquiries/accounts (100 = excellent) ........................................................ 229 Chart 7.12: Holding stock for clients (100 = excellent)....................................................................... 230 Chart 7.13: Technical advice (100 = excellent).................................................................................. 230 Chart 7.14: Co-operative packaging development (100 = excellent) ................................................. 230 Chart 7.15: Competent Sales People (100 = excellent)..................................................................... 231 Chart 7.16: nnovative/new packaging types (100 = excellent) ..........................................................231 Chart 7.17: Product range (100 = excellent) ...................................................................................... 231 Chart 9.1: Rigid plastics packaging, 2008-2010f (tonnes)................................................................281 Chart 9.2: Rigid plastics packaging, 2008-2010f (tonnes)................................................................283

Introduction Plastics Packaging in Australia, 2008-2010

© BIS Shrapnel Pty Ltd 2009 3

1 INTRODUCTION

This biennial study – now in its 14th edition – provides a valuable insight into the current status and short-term outlook of the plastics packaging industry and provides a benchmark of market performance of the major suppliers.

The bulk of the information presented is based on two main surveys:

a survey of over 300 end-user companies

a survey of 50 plastics packaging converters.

In addition, we have carried out comprehensive desk research of Australian and international publications and data banks. Major polymer manufacturers, converters and end-users were interviewed by senior consultants to verify market trends and market size estimates.

Our study reflects typical business plan modules, so that the information can be combined easily with internal company data to prepare individual market plans.

The study is presented in two volumes:

Volume 1: Rigid Packaging

Volume 2: Flexible Packaging.

In each of the two volumes, the Market overview (Chapter 3) identifies the plastics packaging segments in the context of the total plastics and total packaging markets.

In Volume 1 – Rigid Packaging, the layout of the report has been changed to provide greater clarity in the market quantification process. The revised format is more consistent with the existing format of the flexible plastics packaging report.

Chapter 4 (Target markets – End-use applications). This chapter examines the use of rigid plastics packaging in end-use market segments and quantifies polymer demand and packaging units consumed. For each packaging type identified, we review growth rate from 2007 to 2010. Significant trends in the major end-use applications are also identified.

Chapter 5 (Target markets – Moulding technologies). In this Chapter the information covered in Chapter 4 is re-stated in terms of the moulding technologies (blow, injection, thermoformed, etc.) and key packaging types (closures, pails, etc).

Chapter 6 (Target markets – Polymer types). This chapter summarises the demand for specific polymers by market segment and rates of growth through to 2010.

Chapter 7 (Competitive insight – Converters). Major plastics packaging converters are rated on key product and customer service factors. Ratings are compared – where possible – with those reported in our previous reports (2002 and 2005) to identify significant variations in their market performance.

Chapter 8 (Competitive insight – Polymer suppliers). In similar vein, major polymer suppliers are rated by converters on key product and customer service factors. Ratings are compared – where possible – with those reported in our previous reports (2002 and 2005) to identify significant variations in their market performance.

Chapter 9 (Outlook to 2010). This concluding chapter provides our assessment of medium-term economic growth in Australia and our outlook for rigid plastics packaging.

Plastics Packaging in Australia, 2008-2010 Introduction

4 © BIS Shrapnel Pty Ltd 2009

The interviews for this study were conducted in the months of September/October 2008. Copies of the two questionnaires used are provided in Appendix 1. Details of the sample are given in the ‘competitive insight’ sections. The list of respondent companies is attached in Appendix 2.

All survey respondents will receive a brief summary of the key issues of interest to them, in appreciation of their co-operation in our survey. In our experience, this practice assures a greater response rate to our periodical studies.

We wish to record here our appreciation to the many industry executives and experts contacted by our consultants, for their assistance and co-operation in this major research project.

Growth projections for 2008-2010 are consistent with BIS Shrapnel’s projections of a slow economy over this period. At the segment level where many are mature markets, recent growth is unlikely to continue through to 2010 underpinned by a weaker Australian economy. This assumption is widely applied in this study.

Segments covered in Chapter 4: Target markets – end-use applications

Food

Milk Bakery and confectionery products Cream/ice cream Produce Dairy blends Red meat, chicken and fish Spreads Portion control packs Sauces and condiments Disposable packaging (food and beverages)Miscellaneous foods

Beverages

Carbonated drinks Fruit juice/drinks Still and mineral water Sports drinks Cordials

Consumer non-durables

Household cleaning chemicals Aerosol applications Pharmaceuticals Blister packs Personal care products

Industrial

Agricultural and industrial chemicals Building and construction Petroleum products Protective packaging

Methodology for demand estimations – Demand by market segment is determined by estimating the total number of units consumed per annum and multiplying this total by the weight of an ‘average’ unit. Estimating the total number of units is derived from publicly available information (e.g. Retail World), ABS data compilations, industry reports and data extracted from BIS Shrapnel reports, such as Australian Foodservice, 2007 and Route Trade in Australia, 2007. Where none of these sources are relevant, estimates are gleaned from industry sources.

Subscription

Volume 1: Rigids ❏ $24,200

Volume 2: Flexibles ❏ $24,200

Both volumes ❏ $41,800

______ extra copies at $440 each

Total: ____________ The subscription includes two copies of the report. All amounts are inclusive of GST.

Name: ______________________________________________________________________________________________________

Title: _______________________________________________________________________________________________________

Company: ___________________________________________________________________________________________________

Street address: (for courier) ______________________________________________________________________________________

Postal address: __________________________________________________________________________ Postcode: ___________

Phone: (0 ) ____________________________________________ Fax: (0 ) ____________________________________________

Email: _______________________________________________________________________________________________________

Terms of payment: 50% on confirmation of order, with balance payable on receipt of the final report(s).

❏ A cheque is enclosed. ❏ Please invoice me for payment. ❏ Charge my Visa/Mastercard

Card number ______________________________________________________________ Amount $ __________________________

Cardholder’s name _________________________________________________________ Expiry date ________________________

I confirm that these reports are for the internal use of my organisation and its branches or subsidiaries only, and will not be made available or copied for the benefit of other organisations. My company and I are aware of copyright obligations.

Signature: ___________________________________________________________________________ Date: _________________

Please send to: BIS Shrapnel Pty Ltd or BIS Shrapnel Pty Ltd Level 8, 181 Miller Street Level 1, Rialto North Tower North Sydney NSW 2060 525 Collins Street AUSTRALIA Melbourne VIC 3000 Tel (02) 9959 5924 Tel (03) 9614 0011 Fax (02) 9959 5795 Fax (03) 9614 0033 www.bis.com.au

For further enquiries please contact: Gary Tilsley ([email protected]) in our Sydney office or Kevin McDonald ([email protected]) in our Melbourne office.

PACKAGING

Plastics Packaging in Australia 14th Edition, 2008 – 2010 Subscription Form

plastics packaging in australia volume 1: rigid packaging ...€¦ · “creativity is the saviour...

Documents