Australian market research company IbisWorld has estimated an annualised decrease of 2.8 per cent in industry revenue for print, packaging and paper companies in Australia in the next five years.
The report states Australian printing problems are ‘expected to continue over the next five years’ and the industry is in a state of decline.
“Revenue is forecast to decline at an annualised 2.8 per cent over the five years through 2020-21 to reach $6bn,” the report says.
The reports were released alongside its annual top 100 Australian manufacturers, in which print companies Amcor, Australian Paper and Norske Skog secured places.
Industry disruptions have seen many print and packaging groups struggling with revenue or posting weak growth, however packaging giant Amcor took the number five spot.
[Related: Print's rank among the great]
IbisWorld senior industry analyst Spencer Little says just because the paper companies are on the list it does not necessarily mean the industry is doing so well, and estimated further challenges for print.
“Australian Paper’s revenue has grown fairly sluggishly over the previous year, while Norske Skog’s revenue has declined significantly,” he says.
“The prevalence of cheaper imported products is expected to remain an ongoing challenge for industry players.”
Little estimates a lift in industry production despite the falling revenue.
“The industry is expected to increase its productive capacity slightly over the next five years, with Nippon Paper's investment into a $90m waste paper recycling plant at Australian Paper's Maryvale mill,” he says.
IbisWorld attributes tough trading conditions, cheaper overseas services and lower demand for the declining industry revenue.
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