Market Trends of Europe Flexible Plastic Packaging Industry
Flexible Plastic Packaging Offers Convenience and is Lightweight
- The increased demand for convenient packaging in the flexible plastic packaging market is driven by consumer preferences for practicality, portability, sustainability, and enhanced user experiences. As these trends evolve, the flexible packaging industry is expected to innovate further to meet the diverse needs of modern consumers and businesses.
- The growing metropolitan lifestyle of consumers in the region has driven the demand for convenient packaging. Consumers are looking for easy-to-use and lightweight packaging. Vendors are designing packaging solutions to remain competitive in the growing organized retail market with the changing demands of customers. Shifting to an alternative lighter material, such as flexible pouches, provides more significant energy-saving benefits.
- According to a study conducted by the UK Parliament, supermarkets stand as pivotal players in the country's retail scene. They serve as primary hubs for food and essential purchases, pushing innovation and, in some instances, even emerging as prominent international entities. However, their history in the retail realm has seen a notable shift. There were 314,040 retail businesses in the UK retail sector as of January 1, 2023, 5.7% of all companies. Like most other economic sectors, small and medium-sized enterprises (SMEs) make up over 99% of retail businesses.
- The rise in supermarket and grocery store sales indicates a preference among consumers for convenient shopping experiences. As consumers increasingly rely on these retail outlets for purchases, there is a corresponding demand for packaging solutions that offer ease of use, portability, and storage convenience.
- Furthermore, according to Statistisches Bundesamt, the industry revenue from retail sales of food and beverages in Germany was USD 12.36 billion in 2019, and it is expected to reach USD 14.41 billion in 2024. Similarly, the retail sale of fruit and vegetables in specialized stores is expected to reach USD 4.4 billion in 2024. The rise in retail sales of beverages, food, and more in specialized stores is anticipated to leverage the flexible plastic packaging market in the region.
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United Kingdom Expected to Witness Growth
- The food and beverage sector in the United Kingdom is one of the prominent markets in the country. Notably, there is a marked shift toward food and beverage packaging sustainability, from design and material selection to manufacturing and supply chain practices. UK manufacturers have significantly increased their investments in novel packaging solutions over recent years.
- In a notable move, Sunbites, a prominent snack brand under PepsiCo, unveiled a new packaging line in the United Kingdom in late 2023. This innovative packaging is crafted from recycled plastic and transformed into food-grade material through an advanced recycling process. This method, distinct from traditional mechanical recycling, ensures the resulting materials meet the stringent regulatory standards set by the European Union, especially for applications like food contact and medical devices.
- Recycling flexible plastics is particularly complex due to their unique properties, which can lead to entanglement and machinery blockages. The Flexible Plastic Fund (FPF) was initiated by teaming up with major UK manufacturers like Unilever, Mars UK, and Nestlé, among others. Its primary goal was to improve the recycling rates of flexible plastics, ensuring they find repeated use. It aimed to optimize the collection and recycling of flexible plastic packaging, with a three-year trial spanning nine waste collection authorities.
- According to the Office of National Statistics (UK), the manufacture of dairy products was expected to reach USD 11.44 billion in 2024 from USD 11.38 billion in 2019. Similarly, bakery and farinaceous manufacturing revenue is expected to reach USD 11.64 billion in 2024. An increase in income would drive the demand for plastic packaging in food products in the country.
- Moreover, according to the International Trade Administration (ITA), the United Kingdom has the third largest e-commerce market in the world after China. Consumer e-commerce accounts for 36.3% of the total retail market in the United Kingdom, and its revenue is projected to increase to USD 285.60 billion by 2025. Given the escalating prominence of social networking and the widespread adoption of mobile internet, firms are increasingly channeling their investments toward social media marketing as a pivotal avenue to bolster their e-commerce initiatives.
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