Energy, timber costs made the last five years tough for paperboard container makers: report

Revenues for the Australian paperboard container manufacturing industry are approximately $452 million per annum currently, according to new market research, which also finds that this figure declined by 1.4 per cent on average each year between 2020 and 2025. 

The newly-updated Paperboard Container Manufacturing in Australia – Market Research Report (2015-2030) by IBISWorld counted 70 businesses in total, with the three leaders being Opal, Detmold Group, and Graphic Packaging International Australia. 

Among pressures to margins are rising timber and energy costs, with vertically integrated companies more resilient and SMEs facing “higher input costs from a double mark-up on timber, straining their profitability.”

By state, Victoria “stands out as a major centre for paperboard container manufacturing”, with “strong government support for recycling, reliable access to recycled materials and high demand from the state’s thriving food industries” boosting its attractiveness to paperboard container makers.

The sector’s revenues are expected to grow over the next five years, though a summary of the report does not give any relevant numbers.

Picture: credit Edward Betts (public domain)