All wrapped up: Industry revenue has been constrained by increasing import penetration

The Plastic Bag and Film Manufacturing industry has struggled over the past five years due to rising competition from cheaper imported products and limited domestic demand for plastic bags and films. Imports from countries with lower operating costs, particularly China, dominate the industry’s generic product segments, including high-density polyethylene (HDPE) supermarket bags, low-density polyethylene (LDPE) retail bags and other plastic garbage bags. Many small-scale local companies that manufacture these products have struggled to compete on price, which has caused enterprise and establishment numbers to decline over the past five years.Industry revenue is expected to fall at an annualised 0.9% over the five years through 2016-17, to reach $2.08 billion...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 12-17
-0.9%
Forecast Growth 17-22
Profit
Employment
4,707
Businesses
278

Industry Threats & Opportunities

  • Imports from countries with low operating costs dominate the industry's generic product segments
  • Imports account for the majority of plastic bags provided at supermarkets
  • Subdued trends in food product manufacturing and agricultural production will limit revenue
  • Industry Report - Industry Products Chapter

    Companies that operate in the Plastic Bag and Film Manufacturing industry produce a range of products that can be broadly segmented into plastic films and plastic bags.Plastic filmsThe industry derives about two-thirds of its revenue from the production of plastic films. This includes fine plastic wrap that household consumers and professionals use to preserve food, and plastic stretch wrap that is used to package cans, plastic bottles and other consumer goods. Plastic wrap improves hygiene and decreases the likelihood of contamination during food and beverage production processes. Fragile packages are also often wrapped in protective plastic sheets and films during transportation and storage. Plastic stretch film is used to package construction materials. Del...purchase to read more.

    Additional Insights for the Plastic Bag and Film Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Plastic Bag and Film Manufacturing Industry are

  • Economies of scale
  • Optimum capacity utilisation
  • Supply contracts in place for key inputs
  • IBISWorld analysts also discuss how external factors such as Demand from food product manufacturing and Trade-weighted index in the Plastic Bag and Film Manufacturing industry impact industry performance..

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    What's in this report

    What is the Plastic Bag and Film Manufacturing Industry?

    Industry firms manufacture unsupported polymer films and sheets into packaging materials such as plastic bags, thin plastic films, food wrapping, garbage bags and bubble wrap packaging.

    Industry Products
  • Plastic films
  • Plastic bags
  • Industry Activities
  • Plastic bag
  • Plastic food wrapping
  • Plastic film
  • Plastic garbage bag
  • Bubble wrap packaging
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from food product manufacturing
  • Trade-weighted index
  • Household consumption expenditure
  • Demand from construction
  • Demand from food retailing
  • Public concerns over environmental issues

  • Current Performance
  • Import penetration
  • Downstream uses
  • Profit weakens
  • Chart: Revenue Growth

  • Industry Outlook
  • Downstream demand
  • Industry structure
  • Table: Plastic Bag and Film Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Plastic Bag and Film Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Manufacturing
  • Wool Wholesaling
  • Livestock and Other Agricultural Supplies Wholesaling
  • Supermarkets and Grocery Stores

  • Key Selling Industries
  • Industrial and Agricultural Chemical Product Wholesaling
  • Industrial Machinery Manufacturing
  • Synthetic Resin and Synthetic Rubber Manufacturing

  • Products & Services
  • Plastic films
  • Plastic bags
  • Other
  • Chart: Plastic Bag and Film Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Manufacturers
  • Wholesalers and retailers
  • Other
  • Construction companies
  • Chart: Major Market Segmentation for the Plastic Bag and Film Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Plastic Bag and Film Manufacturing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Plastic Bag and Film Manufacturing Industry

  • Industry Globalization
    Amcor Ltd, Sealed Air Australia (Holdings) Pty Limited, Integrated Packaging Group Pty Ltd,
  • Table: Amcor Ltd - financial performance
  • Table: Sealed Air Australia (Holdings) Pty Limited - financial performance
  • Table: Integrated Packaging Group Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Plastic Bag and Film Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Plastic Bag and Film Manufacturing Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Extrusion
  • A process used to create objects with fixed cross sectional profiles, by pushing or drawing input materials through a die.
  • Flexibles
  • Packaging containers made of flexible or yielding materials that can easily change shape.
  • High-Density Polyethylene
  • A type of thermoplastic made from petroleum that is used to make plastic supermarket bags.
  • Low-Density Polyethylene
  • A type of thermoplastic made from petroleum that is used to make thicker retail bags.
  • Polymer
  • A large, molecular compound used as an input in the production of synthetic fibres such as plastic.
  • Resin
  • A natural or synthetic compound that can take many forms depending on its chemical composition.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Plastic Bag and Film Manufacturing market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Plastic Bag and Film Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Plastic Bag and Film Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Plastic Bag and Film Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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