Market Trends of UK Flexible Plastic Packaging Industry
Plastic Recycling is Expected to Drive the Market's Growth
- The UK government has taken proactive steps in the packaging and plastic waste sector, emphasizing the need to reform packaging norms for enhanced environmental sustainability. For instance, FlexCollect, the UK's extensive collaborative initiative supporting the collection and recycling of flexible plastic packaging, was launched with backing from UK Research and Innovation (UKRI).
- According to the British Plastics Federation, the plastics machinery sector in the UK caters mainly to niche markets, emphasizing high-quality, custom, and often compact processing machines. It prioritizes testing equipment, process measurement, control, and ancillary tools. Moreover, in response to the UK's strict recycling laws, the industry has spearheaded the development of various recycling technologies and equipment, solidifying its global leadership in this domain.
- An independent survey commissioned by the BPF and the Environmental Services Association collaboration revealed that 94% of UK adults recycle plastic regularly. These self-reported figures sharply contrast the UK's official recycling statistics, indicating a significant gap between professed and actual recycling habits.
- Efficiently recycling and recovering plastic waste is a pivotal strategy for cost reduction and environmental preservation, especially in manufacturing and retail. Plastic's recyclability underscores its value as a resource-efficient material, emphasizing the need to view used plastic not as waste but as a valuable resource. Also, the country exports its plastic waste to various countries. For instance, according to the HM Revenue and Customs Department, in 2023, Turkey emerged as the primary recipient of the UK's plastic waste exports, taking in over 140,000 metric tons. Following closely, the Netherlands secured the second spot, importing more than 116,500 metric tons. Turkey and the Netherlands have risen as critical destinations for the UK's plastic waste.
- In May 2023, Ecosurety highlighted the ongoing challenges in recycling flexible plastic packaging despite its numerous benefits. While these plastics account for 25% of all UK consumer packaging, a mere 8% is recycled. With the proposed Extended Producer Responsibility (EPR) legislation, the United Kingdom is gearing up for a significant shift. By March 2027, kerbside collections for flexible plastics are slated to become mandatory nationwide. Coupled with the ongoing collections and the impetus from the Plastic Packaging Tax, which encourages using recycled content in packaging, the stage is set for a potential recycling revolution.
Understand The Key Trends Shaping This Market
Download PDF
The Food Industry is Expected to Witness Robust Growth
- The country's demand for various types of food, such as baked food, is high. For instance, according to the Federation of Bakers Ltd, the UK Bakery market is worth GBP 5 billion (USD 6.21 billion) and is a large sector of the UK food industry. The total volume is over 4.5 billion units, equivalent to over 11 million loaves and packs sold daily. Three principal sectors make up the UK baking industry. The larger (plant) baking companies produce around 85% of bread sold in the United Kingdom. In-store bakeries (ISBs) within supermarkets produce about 12%, and high street retail (craft) bakers produce the rest.
- Plastic's versatility in aesthetics and functionality empowers producers to craft innovative and user-friendly solutions. Moreover, the market is witnessing growth due to the increasing adoption of flexible plastic packaging in end-user industries such as food. Consumers appreciate added convenience, while manufacturers see cost savings in the transportation of flexible plastic packaging.
- The country's demand for various types of food, such as baked food, is high. For instance, according to the Federation of Bakers Ltd, the UK Bakery market is worth GBP 5 billion (USD 6.21 billion) and is a large sector of the UK food industry. The total volume is over 4.5 billion units, equivalent to over 11 million loaves and packs sold daily. Three principal sectors make up the UK baking industry. The larger (plant) baking companies produce around 85% of bread sold in the United Kingdom. In-store bakeries (ISBs) within supermarkets produce about 12%, and high street retail (craft) bakers produce the rest.
- Further, according to UN Comtrade, the United Kingdom exports its domestically baked goods to various other countries. Ireland imported considerably more baked goods from the United Kingdom than any other nation. In 2023, Ireland imported baked goods valued at approximately GBP 381 million (USD 473.8 million), and an increase in exports to different countries would promote the flexible plastic packaging market of the country.
- The country is also witnessing growth in the snacked food sector. Consumers are preferring foods that have a significant impact on wellness and health. The search for guilt-free indulgence has sparked demand for healthy products, with an expectation those products are low in calories, low in sugar, high in protein, and natural. (Source: Epcurium, UK Wholesaler). Therefore, flexible packaging manufacturers need to provide recyclable packaging and information on the products, making it easy for consumers to purchase food.
