Market Trends of United Kingdom Rigid Plastic Packaging Industry
Food and Beverage Segment is Anticipated to Witness The Highest Growth
- The United Kingdom's largest manufacturing sector is the food and drink industry, integral to a diverse and intricate supply chain. The British Soft Drinks Association (BSDA) reported that 2023 was a robust year for soft drinks, with volume sales rising by nearly 3% compared to 2022. Notably, Low/No-calorie drinks constituted over 70% of all purchases for the year. While value sales reached a record-breaking nearly GBP 20 billion (USD 26.26 billion), this figure was influenced by specific inflationary conditions. These conditions were largely driven by longstanding, acute supply chain challenges, especially concerning the cost and availability of commodities and raw materials. After investing significant time, money, and resources into introducing a deposit return scheme in Scotland, soft drink manufacturers are now gearing up for a nationwide scheme to launch in October 2027.
- According to BSDA, global sales of energy drinks are on the rise, and the United Kingdom mirrors this trend with a 6.4% increase in 2023. Sports drinks also saw a volume sales uptick of 4.1%. Notably, bulk/HOD water sales skyrocketed by 40.8% in 2023, attributed to many returning to on-site work. This surge contributed to a robust overall growth in the bottled water category. The beverage sector's expansion has, in turn, spurred a rise in the use of plastic bottles nationwide.
- Furthermore, the convenience food market has grown rapidly, particularly in the on-the-go or ready-to-eat segment. This surge in demand has led to a heightened adoption of plastic bottles and jars for items like condiments and sauces. Additionally, increased demand for cooking oils and spices has further bolstered the food sector.
- From raw material storage to transporting finished goods, the food and beverage manufacturing process has created a significant demand for industrial drums, IBCs, plastic crates, pallets, and more. These rigid plastic items play a crucial role in ensuring the safety and efficacy of the finished products. There's been a noticeable trend towards lightweight, rigid plastic packaging, emphasizing minimalist design for sustainability throughout the value chain.
Understand The Key Trends Shaping This Market
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The Rising Demand From The Manufacturing Sector
- According to an August 2024 article from the UK Parliament, in the second half of 2024, the UK manufacturing sector will kick off positively. Output and new orders saw a notable uptick, marking the first rise in workforce levels since September 2022. This recovery was widespread, with production volumes climbing in consumer, intermediate, and investment goods industries. July marked the third consecutive month of rising UK manufacturing production, with the expansion rate hitting a peak not seen in nearly two and a half years. Companies attributed this output growth to launching new products, addressing backlogs, and welcoming new business. Furthermore, the manufacturing sector's demand for secure and durable packaging drives the need for intermediate bulk containers.
- A surge in new orders bolstered the rebound in output at United Kingdom factories. For the third consecutive month, new business saw its most significant rise since February 2022. While the uptick in new work was largely driven by strengthening domestic demand, there were emerging signs of stabilizing new export orders. Notably, the recent dip in new export business was the mildest since the contraction sequence began in February 2022.
- The United Kingdom's thriving manufacturing sector spurred the growth of heavy-duty industrial packaging. In July 2023, goplasticpallets.com, a leading player in the plastic pallet industry, introduced the Qpall 1212 HR 6R V2 to the UK market. This heavy-duty, open-deck plastic pallet, crafted by Q-Pall in the Netherlands, is tailored for industries that require transporting and storing substantial materials, including chemical drums and bulk bags. The Qpall 1212 HR 6R V2, measuring 1200mm x 1200mm x 165mm, showcases an impressive high rack load capacity of 1,375kg. Made from 100% recycled polypropylene, it stands out as a robust choice and a testament to businesses' commitment to sustainable supply chains. An upgraded variant of the original Qpall 1212 HR 6R boasts a static load capacity of 7,500kg and a dynamic load capacity of 2,000kg, making it a trusted option for heavy-duty applications.
- The manufacturing sector has a significant reliance on rigid plastic packaging. The demand remains robust from primary packaging, such as plastic bottles and jars, to secondary and tertiary packaging. This demand for packaging significantly contributes to the Gross Value Added (GVA) of the UK's manufacturing industry, which stood at approximately GBP 199.8 billion (USD 262.4 billion) in 2023, up from GBP 196.5 billion (USD 258.07 billion) in 2019.
