Packaging in UK Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 59.59 Billion |
| Market Size (2029) | USD 66.66 Billion |
| CAGR (2024 - 2029) | 2.27 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
United Kingdom Packaging Market Analysis
The United Kingdom Packaging Market size is estimated at USD 59.59 billion in 2024, and is expected to reach USD 66.66 billion by 2029, growing at a CAGR of 2.27% during the forecast period (2024-2029).
- The packaging market in the United Kingdom has been witnessing significant growth owing to increased manufacturing activities. In February 2024, Coca-Cola planned to temporarily remove labels from Sprite and Sprite Zero on-the-go bottles in a limited trial of "label-less" packaging for 500-ml bottles with an embossed logo on the front of the pack in the United Kingdom, which shows the demand for the packaging market in the country.
- The growth of e-commerce sales, increased demand from food and beverage manufacturers for eco-friendly and recyclable packaging, increasing demand for product personalization, and the growing industrial packaging sector are driving the growth of the packaging market in the country. In November 2023, the International Trade Administration reported that the United Kingdom has the third-largest e-commerce market in the world after China and the United States, which is expected to support the demand for packaging solutions in the country in the coming years.
- The increase in regulations for plastic use is anticipated to affect the market significantly. By disincentivizing the usage of unsustainable materials, the UK government is simultaneously incentivizing the market value of recyclable plastic, fostering a sustainable circular economy that will have global repercussions. In April 2024, the United Kingdom launched the Circularity in Primary Pharmaceutical Packaging Accelerator (CAPA) initiative to develop and implement strategies for the end-of-use recycling of medicinal devices and pharmaceutical packaging, fueling the country's recyclable packaging solutions.
- The conflict between sustainability and affordability in packaging choices has been increasingly evident in the UK packaging market. As consumers grapple with the financial implications of eco-friendly alternatives, a trend toward cheaper, non-sustainable options is becoming more prevalent, impacting a rising market challenge for adopting sustainable packaging solutions.
- However, with the COVID-19 pandemic affecting the market studied, multiple companies in the market shifted toward the usage of single-use plastics. Supply chains strained to meet a surge in demand for single-use plastic packaging and medical supplies. Such a significant spike in plastic demand is likely to lead to a temporary change in the short-term initiatives and goals of transitioning toward a circular economy. Apart from this, it is also expected to put pressure on the plastic packaging manufacturing chain. Furthermore, the war between Russia and Ukraine has an impact on the overall packaging ecosystem.
United Kingdom Packaging Market Trends
Food Segment Expected to Drive Market Growth
- The increasing demand for processed food and the growing adoption of lightweight, flexible packaging drive the market, with varying impacts over the short, medium, and long term. The market for frozen food packaging is witnessing an upsurge due to the country's consumer appreciation of product quality. The demand for frozen food packaging has increased in the United Kingdom due to changing lifestyles.
- The country's food manufacturers are increasingly replacing plastic-based products in line with their paper-based counterparts for sustainability, which is expected to fuel the market’s growth. For instance, in September 2023, Mondi, a global leader in sustainable packaging and paper, launched paper-packed dry rice in the United Kingdom for the first time by collaborating with award-winning rice supplier Veetee, showing the market’s growth in the food packaging segment.
- Stand-up pouches are anticipated to become a standard form of packaging throughout the forecast period due to their capacity to maintain the freshness of food products and increase product shelf life. Furthermore, the pouches also offer a great visible aesthetic, which adds to the product's marketing benefits. 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 for brands. Responding to the expanded market demand for post-consumer recycled (PCR) packaging solutions, a flexible packaging company, ProAmpac, announced the launch of its ProActivePCR Retort pouches. The retort pouches are intended for pet and human food packaging and are both FDA and EU-compliant for food contact in retort applications. They provide packaging with a post-consumer recycled (PCR) content of 30% or more, minimizing the use of virgin resins. These inventive pouches also adhere to United Kingdom Plastics Packaging Tax regulations (PPT).
- The percentage change in annual internet food sales has reached a pre-pandemic level after a significant increase during the COVID-19 pandemic, which has raised consumer behavior to prefer online ordering of foods. In December 2023, Eviosys relaunched Eviosys's R&D center in Wantage, Oxfordshire, to become the food industry's sustainable packaging partner of choice, which shows the demand for the market in the country.
PET (Polyethylene Terephthalate) Expected to Hold Major Market Share
- Plastic bottles are widely used in various industries in the United Kingdom due to the beverage companies' growing use of recyclable plastics. The food and beverage market is one of the major users of plastic bottles and containers. The rising use of PET bottles drives the country's plastic bottle market due to their low cost and lightweight in various end-user applications, including food, beverage, cosmetics, and pharmaceuticals.
- Furthermore, newer filling technologies and the development of heat-resistant PET bottles provided new possibilities and options in the market. While PET bottles are standard in multiple segments, beverages, cosmetics, sanitary products, and detergents are largely sold in polyethylene (PE) bottles, which is supporting the market’s growth in the country.
- PET plastic materials sustain high demand from FMCG brand owners in the United Kingdom. In May 2024, the recycling technology firm Polytag named the UK retailer M&S as a founding member of its Polytag Ecotrace Programme, an initiative set to optimize the tracing and recycling of single-use plastic packaging in the United Kingdom. The Polytag Ecotrace Programme would deploy a vast network of Polytag’s invisible UV tag detection equipment in strategically chosen recycling centers that handle high volumes of waste, which would support the recycled PET bottles in the country.
- The market has been registering advancements in the design of bottles to make them easy to load onto pallets and transport to supermarkets, which shows the demand for PET bottles in the market. For instance, in March 2024, Aldi in the United Kingdom launched its own-brand flat recycled PET wine bottles, which it said are made from 100% recycled PET, showing the market's future growth potential.
- The Office for National Statistics (United Kingdom) reported that consumer spending on food and non-alcoholic beverages in the United Kingdom has been increasing, which would support the demand for bottle packaging and fuel PET adoptions in line with the demand for recyclable PET and the advantage of PET material in beverage packaging.
United Kingdom Packaging Industry Overview
The packaging market in the United Kingdom is fragmented and consists of several global and regional players. Some of the players currently dominate the market in terms of overall share. These major players with prominent market share focus on expanding their customer base across end users. These companies, such as Amcor PLC, DS Smith PLC, AptarGroup Inc., Sealed Air Corporation, and Sonoco Products Company, leverage strategic collaborative initiatives to increase their market share and profitability.
- February 2024: The European paper and packaging company DS Smith PLC planned to invest about USD 60 million in a new fiber preparation line at its Kemsley recycled paper mill in southeast England. This would enable the company to deliver returns through improved efficiency and reduced costs. This shows the investments by the market vendors to support their organic growth in the market studied.
- November 2023: Amcor and Saputo Dairy UK won ‘Flexible Plastic Pack of the Year’ at the UK Packaging Awards. The companies were recognized for developing new, recycle-ready grated cheese packaging for the nation’s favorite cheese brand, Cathedral City. This shows the demand for dairy product packaging in the country and the collaborations among the stakeholders to be competitive in the United Kingdom.
United Kingdom Packaging Market Leaders
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Amcor PLC
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DS Smith PLC
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AptarGroup Inc.
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Sealed Air Corporation
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Sonoco Products Company
*Disclaimer: Major Players sorted in no particular order
United Kingdom Packaging Market News
- April 2024: Flora, a food spread company, launched the world's first plastic-free paper tub in the United Kingdom. This innovative packaging allows shoppers to purchase Flora Plant products in recyclable tubs at Sainsbury's stores across the country. This represents a significant step toward Flora's goal of reducing plastic in its portfolio by 80% by 2030, and it is expected to drive the demand for sustainable packaging practices in the United Kingdom, creating a growth opportunity for the market.
- November 2023: Nestlé has pledged to provide a USD 8.78 million loan to Impact Recycling, a Newcastle-based company, to support their innovative process for recycling flexible packaging like candy wrappers and snack bags. Impact Recycling plans to use the loan to establish a new facility in Durham to process hard-to-recycle flexible plastics from food packaging into pellets that can be used to create new flexible products. This investment demonstrates the growing demand for sustainable packaging solutions and is expected to contribute to overall market growth.
Packaging in UK Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definitions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitutes
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
4.4 Impact of COVID-19 on the Packaging Industry
4.5 Analysis of Technologies for Sustainability in Packaging
4.6 Overview of the Global Packaging Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Rising Demand from the Millennials for Luxury Packaging for Consumer Goods
5.1.2 Soaring Demand for E-commerce Packaging
5.1.3 Flexible Packaging Continues to Grow Faster
5.2 Market Restraints
5.2.1 High Cost of Development and the Rising Concept of Recycling
5.2.2 The Rising Environmental Concerns
6. MARKET SEGMENTATION
6.1 By End-User Vertical
6.1.1 Food
6.1.2 Beverage
6.1.3 Healthcare
6.1.4 Cosmetics, Personal Care, and Household Care
6.1.5 Industrial
6.2 By Plastic Packaging
6.2.1 Material Type
6.2.1.1 PE (Polyethylene)
6.2.1.2 PP (Polypropylene)
6.2.1.3 PVC (Poly Vinyl Chloride)
6.2.1.4 PET (Polyethylene Terephthalate)
6.2.1.5 Other Material Types
6.2.2 By Type
6.2.2.1 Rigid Plastic Packaging
6.2.2.1.1 Bottles and Jars
6.2.2.1.2 Trays and Containers
6.2.2.1.3 Other Product Types
6.2.2.2 Flexible Plastic Packaging
6.2.2.2.1 Pouches & Bags
6.2.2.2.2 Films and Wraps
6.2.2.2.3 Other Product Types
6.3 By Packaging Material Type
6.3.1 Paper
6.3.1.1 Carton Board
6.3.1.2 Containerboard and Linerboard
6.3.1.3 Other Types
6.3.2 Glass
6.3.3 Metal (Cans, Drums, Caps and Closures, and Bulk Containers)
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Amcor PLC
7.1.2 DS Smith PLC
7.1.3 Owens Illinois Inc.
7.1.4 Crown Holdings Inc.
7.1.5 Berry Global Inc.
7.1.6 Sealed Air Corporation
7.1.7 Sonoco Products Company
7.1.8 Graphic Packaging International LLC
7.1.9 Greif Inc.
7.1.10 Ball Corporation
7.1.11 Westrock Company
7.1.12 Silgan Holdings Inc.
7.1.13 AptarGroup Inc.
7.1.14 Huhtamaki Oyj
7.1.15 Mondi Group
7.1.16 Tetra Pak International SA
7.1.17 Can-Pack UK Ltd
7.1.18 Ardagh Group
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
United Kingdom Packaging Industry Segmentation
Packaging is part of the multifaceted system that provides products from the point of manufacture to the point of consumption. Its principal purpose is to guard and ensure the safe and secure delivery of the product in its flawless and perfect condition to the end user (manufacturer or consumer). Its role in a circular economy is to sustain a product's value for as long as required and to help remove product waste.
The packaging market in the United Kingdom is segmented by end-user vertical (food, beverage, healthcare, cosmetics, personal care and household care, and industrial), plastic packaging (material type (polyethylene, polypropylene, polyvinyl chloride, and polyethylene terephthalate), type (rigid plastic packaging (bottles and jars, trays, and containers), flexible plastic packaging (pouches and bags, films, and wraps))), and packaging material type (paper (carton board, containerboard, and linerboard), glass, and metal). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By End-User Vertical | |
| Food | |
| Beverage | |
| Healthcare | |
| Cosmetics, Personal Care, and Household Care | |
| Industrial |
| By Plastic Packaging | ||||||||||||
| ||||||||||||
|
| By Packaging Material Type | |||||
| |||||
| Glass | |||||
| Metal (Cans, Drums, Caps and Closures, and Bulk Containers) |
Packaging in UK Market Research FAQs
How big is the United Kingdom Packaging Market?
The United Kingdom Packaging Market size is expected to reach USD 59.59 billion in 2024 and grow at a CAGR of 2.27% to reach USD 66.66 billion by 2029.
What is the current United Kingdom Packaging Market size?
In 2024, the United Kingdom Packaging Market size is expected to reach USD 59.59 billion.
Who are the key players in United Kingdom Packaging Market?
Amcor PLC, DS Smith PLC, AptarGroup Inc., Sealed Air Corporation and Sonoco Products Company are the major companies operating in the United Kingdom Packaging Market.
What years does this United Kingdom Packaging Market cover, and what was the market size in 2023?
In 2023, the United Kingdom Packaging Market size was estimated at USD 58.24 billion. The report covers the United Kingdom Packaging Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the United Kingdom Packaging Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
UK Packaging Industry Report
The United Kingdom packaging market is a dynamic and evolving sector, segmented by various end-user verticals including food, beverage, healthcare, industrial, cosmetics, personal care, and household care. The market is comprehensively analyzed in terms of plastic packaging, which includes material types like polyethylene, polypropylene, polyvinyl chloride, and polyethylene terephthalate. The types of plastic packaging are further categorized into rigid plastic packaging, such as bottles and jars, and flexible plastic packaging, including pouches and bags, films, and wraps. Additionally, the market encompasses other packaging materials like paper, glass, and metal.
Industry analysis highlights the significant growth rate and industry trends within the UK packaging sector. The market overview provides a detailed industry outlook, showcasing market growth, market data, and market value. The industry reports and industry research offer valuable insights into the market forecast and market segmentation, essential for understanding the market predictions and market review. The comprehensive industry information and industry statistics are crucial for identifying market leaders and understanding the market outlook.
The report example and report pdf serve as essential tools for research companies and industry professionals, offering an in-depth market analysis and market overview. The industry size and industry sales are meticulously detailed, providing a clear picture of the market's current state and future potential. The industry trends and market forecast are pivotal for stakeholders to make informed decisions and strategize accordingly.
In summary, the UK packaging market is thoroughly examined in this report, providing a holistic view of the industry's dynamics, market segmentation, and future outlook. The industry reports and industry research are invaluable resources for gaining a comprehensive understanding of the market, ensuring that stakeholders are well-equipped with the necessary information to navigate the evolving landscape.
UK Packaging Market Report Snapshots
