United Kingdom Packaging Market Size (2024 - 2029)

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 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.