Market Trends of united kingdom adhesives Industry
With the advancement in plastic recyclability and demand for food and beverage industry, plastic packaging to lead the packaging industry
- Due to the COVID-19 pandemic, the country-wide lockdowns and temporary shutdown of manufacturing facilities caused several issues, including supply chain and import and export trade disruptions. As a result, the country's packaging production declined by 3% in 2020 compared to the previous year, significantly affecting the market.
- However, as a result of the pandemic, consumption patterns have changed, more people started shopping online, and packaging has become much more significant. The United Kingdom has the most advanced e-commerce market and is the fourth largest in the world, which will drive the packaging production market. When it comes to internet shopping, the United Kingdom is the most popular market in Europe. The UK's e-commerce industry generated GBP 129 billion in revenue in 2021, more than triple the revenue generated by UK e-commerce in 2015, and it was around 15% higher than the GBP 112.7 billion in 2020.
- Packaging production is majorly driven by plastics in the country, accounting for around 77% of the packaging produced in 2021. Around 44.3% of plastics produced were consumed by packaging in the United Kingdom. With the advancement of plastic recyclability, the plastic production segment is likely to register the fastest growth rate of around 3.37% CAGR during the projected period.
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In addition to eco-friendly transportation by 2030, electric vehicle registrations growth is likely to propel the automotive production
- The UK automotive industry is a vital part of the UK economy, worth more than EUR 60.2 billion in turnover and adding EUR 11.9 billion value to the UK economy. However, in 2020, the automotive vehicle production in the country reduced by 29.5% compared to the same period in 2019, as the UK automotive sector faced some of the biggest challenges in its history while responding to the COVID-19 pandemic and repositioning for Brexit implications.
- After contracting by 29.5% in 2020, British automotive vehicle production further declined by 4.7% in 2021, as the semiconductor shortage severely affected production. New car registrations decreased 34% Y-o-Y in September 2021, which is excepted to affect the UK sealants market in the future.
- The United Kingdom is planning to phase out gasoline and diesel vehicles to promote the transition to more eco-friendly transportation by 2030. The country also planned an investment of over GBP 1.8 billion in infrastructure and grants to expand access to zero-emission vehicles and support a green economic recovery, thereby increasing the demand for the electric vehicles market in the country.
- The total number of BEV, PHEV, and HEV registrations in the United Kingdom accounted for 452,527 in 2021, registering a growth rate of 58.7% Y-o-Y, compared to 285,199 registrations in 2020. Out of total registrations in 2021 (with percentage Y-o-Y change), 190,727 (76.3%) were BEVs, 114,554 (70.6%) were PHEVs, and 147,246 (34.0%) were HEVs. In 2021, BEV, PHEV, and HEV captured around 27.5% share of total car registrations in the country.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Being the second largest aerospace sector in the world and with forecast of around 10% market share by 2030, United Kingdom aerospace sector is expected to increase
- In addition to government schemes, the usage of automation and robotics in production lines to reduce production cost, the footwear industry is likely to propel
- Rising investments in housing and infrastructure by the government to boost the construction industry
- Owing to the regulations on timber export by United Kingdom Timber Regulation (UKTR), the demand for local manufacturing of furniture is likely to boost the industry
