Blog cover image titled "The Year in Packaging," summarizing key trends and developments in the packaging industry over the past year.

The year in packaging

The Consumer Packaged Goods Segment in Australia: Slowing Down

The consumer packaged goods segment in Australia has slowed down in relation to Australian businesses manufacturing and packing locally.

Many of the contract packing customers working with Packserv Australia Equipment have spoken about losing contracts to offshore competitors. Additionally, many of their Brand & Product Owner customers have commented on slowing sales both locally and internationally.

Offshore competition in the contract packing space is a particularly troublesome issue from Packserv’s perspective. Many Australian Brand & Product Owners, who create, manufacture, and pack their own products, have enjoyed significant growth and success in a short timeframe both here and abroad.

There was significant discussion during 2009-2011 about offshore packing and reworking due to poor-quality workmanship, as well as cultural and language barriers. However, in 2012, many Australian brands shared stories of working hard to keep up with the high demand for their products. As a result, Australian equipment manufacturers, distributors, and associated services experienced the positive flow-on effects of this demand.

It came as a surprise to many to discover, early in 2013, that markets had suddenly slowed. Packserv witnessed many long-established businesses fall into administration. What was even more surprising was the realization that the looming election had little or no impact on recovery after all.

Prior to 2012, Australia was somewhat insulated from the global financial crisis due to its strong mining industry. As we move into 2014, most commentators predict that businesses can expect a similar economic climate to this year, with an expected GDP growth of 2.9%.

Australia is known to be one of the world’s best producers of boutique products. Packserv can relate to this, as they see their customers manufacture and pack beautifully crafted consumer packaged products every day. Makers of candles, home scents, beauty products, and especially gourmet food and beverage brands are among Packserv’s most successful customers this year. What these customers have in common, apart from the high quality of their products, is that their branding and packaging are well thought out and have a strong point of view.

Looking ahead, Packserv is excited to release some innovative solutions in the New Year, aiming to offer the best equipment and services in the packaging segment to their customers.

In addition, Packserv will be preparing a series of surveys to be sent to their customers over the coming months. The goal is to proactively seek meaningful ways to introduce more benefits to customers throughout 2014 and beyond.

For more information on packaging equipment hire and services, contact Packserv at 1300 377 512 or contact us.

Read this article in Manufacture’s Monthly website.

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