Market Trends of United Kingdom Plastic Caps And Closures Industry
Plastic Resins Such as Polyethylene and Polypropylene to Push the Market Growth
- Polyethylene (PE) is a highly durable plastic, prized for its chemical resistance and cost-effectiveness. Derived from petroleum polymers, PE boasts resilience against environmental hazards. It's typically categorized into high-density polyethylene (HDPE) and low-density polyethylene (LDPE). While both are widely used, HDPE, being stiffer, finds favor in industries, especially in North America, for its strength, particularly in packaging applications requiring impact resistance.
- Polypropylene (PP), another prominent plastic, boasts superior rigidity and heat, water, and chemical resistance. PP excels in high-temperature scenarios but lags in low-temperature performance. PP, known for its availability and durability, is a top choice in plastic packaging. Its ability to maintain shape, even under rough handling, makes it a standout choice for caps, where durability is paramount.
- According to the British Plastics Federation, supermarkets are returning to reusable products. Similar items are also gaining traction in the automotive supply chain. PP-made caps and closures have seen a surge in demand, especially in the PET bottle market. The mineral water and edible oil segments notably drive this growth.
- In November 2023, LyondellBasell, a prominent player in the chemical industry, unveiled its latest venture: a distribution hub in the United Kingdom dedicated to its Polyolefins grades. This strategic initiative highlights its unwavering dedication to elevating customer satisfaction. The company aims to slash lead times on its orders by strategically locating inventories near its client's facilities. Such expansions would push the country's market for plastic resins.
- According to the Office for National Statistics (UK), the manufacture of plastic products in 2020 was USD 20.44 billion and is expected to reach USD 22.95 billion in 2023. The UK plastics industry boasts a sprawling supply chain, from raw materials to additive producers, end-users, and recyclers. With 5,700 companies, the UK is a global plastic sector leader, excelling in material and additive manufacturing, processing, and machinery supply.
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Beverage Industry is Expected to Witness Growth
- With a fusion of premium produce and advanced technology, the UK is a beverage innovation pioneer. This dominance highlights the sector's economic significance and the opportunities it offers exporters, investors, and global buyers. The UK's drink industry boasts robust capabilities across its supply chain, excelling at every stage of product development. Moreover, its commitment to research and development and well-defined market strategies position it favorably to cater to evolving consumer demands.
- According to a study by Banco Santander SA, the UK is the world's second-largest exporter of beverages, uniquely boasting a trade surplus in the food and drink sector. This surplus is predominantly attributed to the nation's expertise in alcoholic beverages.
- The beverage manufacturers' primary avenue to reach consumers is via the retail sector, dominated by Tesco, ASDA, Sainsbury's, and Morrison's. However, shifting consumer preferences, particularly a growing appetite for cost-effective options, have propelled discount and private-label retailers like Aldi and Lidl. These discount retailers have steadily advanced in the dominant market share. The rise in supermarkets in the country also pushed the market for caps and closures.
- According to the Office for National Statistics (UK), the revenue from producing soft drinks and bottled waters in 2020 was USD 6.30 billion and is expected to reach USD 7.21 billion in 2024. Soft drinks, commonly called soda or carbonated beverages, are also widely consumed in the country and fall under the umbrella of the non-alcoholic beverage sector. They typically comprise water, sugar, artificial sweeteners, and flavoring agents. Given their widespread popularity, the demand for beverage caps and closures is poised to rise.
- Furthermore, as of March 2024, with its NEO WTR brand, Brookfield Drinks is set to make waves as Europe's pioneer in introducing a 100% Prevented Ocean Plastic bottle. This innovative product is slated to debut in 250 Tesco superstores. NEO WTR, a creation of Brookfield Drinks, has outpaced major soft drink conglomerates by rolling out a new spring water line. With a fully recyclable bottle, label, and cap, NEO WTR is a Somerset-sourced spring water bottle in the UK. Such beverage launches drive the caps and closures market growth in the country.
