Industry Analysis & Industry Trends
The Corrugated Paperboard Container Manufacturing industry is in a decline. The industry's fate is largely bound to that of the Australian manufacturing sector as a whole, as downstream manufacturers account for over half of all sales for the industry. Australia's manufacturing cluster has struggled to expand, due to rising import penetration and a highly competitive global market and, as a result, demand for corrugated paperboard packaging has dropped as downstream manufacturers fought to cut costs. The drought and flood conditions in Australia have also taken their toll on the industry, with fewer cardboard boxes used in horticultural packaging.
IBISWorld estimates revenue will decrease 3.3% annually over the five years through 2012-13... purchase to read more
Industry Report - Industry Key Buyers Chapter
Amcor and Visy produce the bulk of the corrugated packaging required for the domestic market. The two major players are expected to take home 85.9% of total industry revenue in 2012-13. This puts them in a highly favourable position of market power and hence, the industry is highly concentrated. This industry is effectively a duopoly which would potentially result in a higher risk of non-competitive trade practices. This was the case in 2005 where the ACCC alleged that Visy and Amcor took advantage of their power and engaged in price fixing. The ACCC ultimately fined Visy, and both Visy and Amcor were ordered to pay damages totalling over $95 million in a civil suit launched against them following the criminal case... purchase to read more