Market Trends of United Kingdom Metal Packaging Industry
This section covers the major market trends shaping the UK Metal Packaging Market according to our research experts:
Growing Demand from the Beverage Industry
- Beverage cans are getting popular in the country due to their positive environmental effect (infinitely recyclable as every single can be recycled and recycling takes 60 days with no loss of quality). They are lightweight, chill quickly, and are easy to carry. Furthermore, consumers prefer cans as they are easy to store, stack, dispose of, and cater to in a wide range of sizes and have numerous uses.
- Due to consumer trends and preferences shifts, cans are gaining momentum in beverage applications such as specialty drink categories. Carbonated and flavored waters are also growing in cans. The progression of filling technology, together with know-how, makes it feasible to pack vital drinks such as wine, beer, water, carbonated drinks, etc., and keeping it fresh and safe is expected to drive the demand for metal cans in the market.
- Furthermore, many companies in the alcohol sector are introducing drinks and seizing the growing market. For instance, in November 2022, Lockdown Liquor & Co introduced its premium canned cocktails with a new range called Easy Liquor. The line-up includes a Margarita, a Rum Punch, a Ginger Cosmo, and an Espresso Martini. The growing introduction of new canned beverages creates demand for metal cans.
- Moreover, the growing consumption of alcoholic and non-alcoholic beverages in the country has shown a significant rise which is positively impacting the metal packaging market. According to the Office for National Statistics United Kingdom, consumer spending on food and non-alcoholic drinks in the United Kingdom has significantly increased from GBP 91,195 million (USD 110.6 thousand) in 2015 to GBP 117,973 (USD 143.1 thousand) million in 2021.
Understand The Key Trends Shaping This Market
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Cans are Expected to Hold a Significant Share
- Consumers in the United Kingdom are continuing to change their eating habits in the wake of the cost-of-living crisis with a surge in demand for canned foods. In a recent survey conducted by the international food and drink group, over 1,000 consumers of the United Kingdom aged 18-56 in September 2022 revealed that almost 31% of consumers in the country intend to buy more canned products.
- The sales volume of canned goods is growing as food inflation continuously increases. As a result, consumers are likely to buy more canned goods due to lower costs and longer shelf lives, cutting the ability to keep products in stock and minimizing food waste. This growth in canned food sales is attributed to the market's need for metal cans and containers.
- Furthermore, the growing preference for canned fruits soaked in natural fruit juices instead of artificial sugar syrup in countries like the United Kingdom, Germany, and France offers opportunities for exporters from developing countries to export canned fruits. According to the CBI Ministry of Foreign Affairs, the European market for canned fruits and vegetables in the next five years is expected to increase with an annual growth rate of 1% to 2%. The main reasons for the growth of canned food are innovations that lead to the improvement of canning technology and increased expenditure in research and development.
- A surge in consumer spending for convenience and healthier food due to a busy lifestyle, especially among working-class people, has positively supported the sales of canned products. According to the Office for National Statistics (UK), consumer spending on food and non-alcoholic beverages in the United Kingdom reached approximately GBP 29 billion (USD 35.26 billion) in 2021 from around GBP 29.68 billion (USD 36.04 billion) in the same period of 2020.
