Market Trends of United Kingdom Plastic Packaging Industry
This section covers the major market trends shaping the UK Plastic Packaging Market according to our research experts:
Food Industry Driving Prominent Growth
Food packaging is one of the most significant users of plastics. The demand for plastic packaging in the food industry is increasing. They are increasingly replacing traditional materials, such as paperboard, metals, and glass, owing to their beneficial properties, such as lightweight and reduced cost.
The preference for processed and packaged foods has propelled the food packaging market in the region due to rapidly developing lifestyles and economic growth. The main reason for the increasing preference for processed food is the shifting population dynamics toward urban centers from rural areas.
However, the region is witnessing an increasing amount of plastic packaging waste (by 2% annually). The EU Commission is considering the general ban on plastic packaging, which is expected to constrain market growth. Virginijus Sinkevicius, the new EU Commissioner for Environment, stated that they are planning to ban plastic packaging or the usage of recycled plastic.
Over the forecast period, stand-up pouches are expected to become a standard form of food packaging due to their ability to retain the freshness of food products and extend the shelf life of products. In addition, the pouches also offer a great visible aesthetic, adding to the marketing benefits of products. This has led to the wide adoption of pouches as a stable alternative to other formats and is expected to take further momentum in terms of demand and customer acceptance during the forecast period. In the United Kingdom, sustainability and recyclability play a significant role in raising consumer preference toward brands.
Flexible Packaging is Expected to Observe Significant Growth
Flexible packaging in the United Kingdom is expected to witness a stable growth rate during the forecast period. The increasing number of end users, such as pet food, fresh food, and coffee, is driving the need for producing higher flexible packaging in the region. The general trend of the shift from rigid to flexible to fit the changing lifestyles, along with the growth of smaller households, is increasing the need for single-serve options.
Flexible packaging increases the sustainability of the products by increasing their shelf life. It has also enabled the introduction of new products, like frozen food, which has been realized only through flexible packaging.
Food production witnessed an unprecedented boom at the beginning of the pandemic, while some fast-moving consumer goods (FMCG) manufacturers repurposed production lines. The market for flexible plastic packaging in the United Kingdom is anticipated to register significant revenue due to substantial manufacturing facilities.
However, to motivate investment in much-needed jobs and infrastructure to make flexible plastic recycling a financially sustainable system in the United Kingdom, the Flexible Packaging Fund was launched in 2021. FMCG and retail leaders, including Mars UK, Mondelēz International, Nestlé, PepsiCo, and Unilever, teamed up to form a GBP 1 million (approximately USD 1.2 million) fund to help make flexible plastic recycling economically viable for recyclers and easier for consumers. In collaboration with manufacturers, retailers, and recyclers, the fund intends to improve flexible plastic recycling and reduce plastic pollution by giving the material a stable value.
Several factors, like a steady rise in the demand for processed food and increasing adoption of lightweight flexibles, drive the market with varying impacts over the short, medium, and long-term periods. Further, the market for frozen food packaging is witnessing an upsurge in demand with the consumer appreciation of the product quality in the region. With the growth in the economy and changing lifestyles, there is an increased demand for frozen food packaging in Europe, and the market is expected to grow lucratively during the forecast period.
Increasing recycling rates in the United Kingdom have been driving the use of flexible plastic packaging in the country. According to UK Statistics on Waste, published in July 2022, the recycling rate of packaging waste increased in the country from 59.2% in 2014 to 63.2% in 2021. Initiatives by private players are also helping the recycling rate to improve, driving the usage of flexible plastic packaging in the country.
