Summary

The United Kingdom Plastic Packaging market was expected to register a CAGR of 2.87% during the forecast period (2021-2026). In few places, COVID-19 is being used as a way to bring back single-use plastic bags rather than accepting reusable ones. For instance, Lush, a UK-based cosmetics retailer, which has a high percentage of packaging-free items, is being scrutinized by customers, in terms of how those products are picked and delivered to them.

Key Highlights
The increases in regulations against the use of plastic are anticipated to lay a significant effect on the market. For instance, in March 2020, the UK Chancellor of the Exchequer revealed that the plastic packaging tax would see companies paying EUR 200 per metric ton of packaging made from less than 30% recycled plastic from April 2022.
Further, owing to the implementation of this regulation, various manufacturers and associations across various end-user industries have raised their concerns. For instance, owing to the tax regulation, the Food & Drink Federation complained that the UK's newly announced plastic tax will penalize food and beverage producers, and it called for efforts to improve the country's recycling infrastructure instead.
Among various industries using plastic, the dairy industry is focusing on reducing plastic use. The UK's Food and Farming Minister, Lord Rooker, called for the country's dairy industry to become more sustainable, targeting a 50% reduction in the number of plastics used in milk packaging as a critical goal for 2020. This indicates even more growth for greener packaging in a country that has already shown innovative diversity.
Also, the region is witnessing a decline in the use of various plastics. For instance, according to RECOUPs, Black Plastic Packaging Forum report, it is estimated that the amount of black plastic packaging used in the UK fell from 36,000 metric ton to 10,000 metric ton going into 2020. It also mentions that black plastic now accounts for 0.7% of consumer plastic packaging placed on the UK market each year.


Key Market Trends

Food Industry impelling Prominent Growth


Food packaging is one of the most significant users of plastics. The demand for plastic packaging for the food industry is increasing. They are increasingly replacing traditional materials, such as paperboard, metals, and glass, owing to their beneficial properties, such as lightweight and reduced cost.
The changing lifestyle of the consumer is resulting in increased demand for ready-to-eat foods. According to the industry forecasts, revenue from the ready-to-eat (RTE) food segment is expected to amount to USD 83,849 million in 2020. The rise of RTE and grab-and-go meals are expected to shape the future of the region’s food packaging trends.
Moreover, the preference for processed and packaged foods has propelled the food packaging market in the region due to the rapidly developing lifestyles and economic growth. The main reason for the increasing preference for processed food is the shifting population dynamics toward urban centers from rural areas.
However, the region is witnessing an increasing amount of plastic packaging waste (by 2% annually). The EU Commission is considering the general ban on plastic packaging, which is expected to constrain market growth. Virginijus Sinkevicius, the new EU Commissioner for Environment, stated that they are planning to ban plastic packaging or the usage of recycled plastic.


Flexible Packaging Will Observe Significant Growth


Flexible packaging in the United Kingdom is expected to witness a stable growth rate during the forecast period. The healthy growth of end-users, such as pet food, fresh food, and coffee, driven the need for producing higher flexible packaging in the region. The general trend of the shift from rigid to flexible to fit the changing lifestyles, along with the growth of smaller households, is increasing the need for single-serve options.
Flexible packaging increased the sustainability of the products, by increasing their shelf life, and it also enabled the introduction of new products, like frozen food, which has been realized only through flexible packaging.
Food production witnessed an unprecedented boom at the beginning of the pandemic, while some fast-moving consumer goods (FMCG) manufacturers repurposed production lines. Moreover, the market for flexible plastic packaging in the United Kingdom is anticipated to register a significant revenue due to substantial manufacturing facilities.
However, to motivate investment in much needed jobs and infrastructure to make flexible plastic recycling a financially sustainable system in the UK, the Flexible Packaging Fund was launched in 2021. FMCG and retail leaders Mars UK, Mondelēz International, Nestlé, PepsiCo and Unilever, teamed up to form a GBP 1 million fund to help make flexible plastic recycling economically viable for recyclers and easier for consumers. In collaboration with manufacturers, retailers and recyclers, the fund intends to improve flexible plastic recycling and reduce plastic pollution by giving the material a stable value.


Competitive Landscape

As the demand for plastic packaging has been increasing significantly in the United Kingdom region, the market is mildly concentrated with the presence of major players like Amcor, Coveris Holding, Berry Global, Sealed Air Corporation, Constantia Flexibles, among others.


Feb 2021 - Berry Global launched a polyethylene terephthalate (PET) spirit bottle specifically designed for e-commerce businesses. The 50ml PET bottle aimed to address the increasing demand of online spirit sales, especially gin.
March 2021 - A partner for the maintenance, repair, and handling of passive bulk temperature-controlled containers at several key locations was announced by Sonoco ThermoSafe, a Sonoco unit provider of temperature-assured packaging solutions, and Unilode Aviation Solutions, a company dealing with outsourced unit load management and repair services.


Additional Benefits:

The market estimate (ME) sheet in Excel format
3 months of analyst support

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