Market Trends of United Kingdom Corrugated Packaging Industry
This section covers the major market trends shaping the UK Corrugated Packaging Market according to our research experts:
E-commerce Industry Expected to Stimulate Demand
- The e-commerce industry in the UK is witnessing a significant transformation in consumer behavior owing to the COVID-19 pandemic. It has boosted e-commerce business as it has changed the way consumers shop. Consumers prefer to buy online rather than shopping at physical stores. Also, the recent economic slowdown has negatively influenced e-commerce package/retail sales; e-commerce retail sales have continued to rise, providing significant potential for corrugated packaging suppliers.
- Additionally, several e-commerce firms such as Amazon, Tesco, Argos, Currys, and others have benefited from using corrugated-based packaging. These corrugated boxes can help the company achieve savings of 7%-36%, depending on the box size, and can manufacture boxes with 30% greater stacking strength and crush resistance while using lighter-weight materials for the bottom panel of the box.
- According to Web retailer, in 2021, the United Kingdom was the third-largest e-commerce market globally. Online retail sales reached USD 131 billion annually, behind only China and the United States. Additionally, the UK is one of the most developed markets for e-commerce globally, with online sales making up 23% of total UK retail sales.
- Moreover, according to Office for National Statistics (UK), The United Kingdom is one o the leading market in Europe for online shopping. The revenue of e-commerce in the United Kingdom amounted to GBP 129 billion in 2021, compared to GBP 112.7 billion in 2015, which is 15% higher than in 2015.
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Fresh Food and Produce Industry Expected to Gain Significant Traction
- The food industry is rapidly moving towards eco-friendly packaging by adopting corrugated board packaging solutions. The increasing concern towards hygiene in food packaging has mandated several standards for the packaging industry and stimulated the adoption of eco-friendly packaging solutions.
- Fruit packing necessitates extreme caution due to the product's fragile and perishable nature. Regarding rigid fruit transport packaging, corrugated fiberboard (CFB) is the most environmentally friendly solution. Corrugated boxes have recently gained a large following among fruit exporters because of their improved adaptability for air, sea, and road transport.
- According to the most recent sales figures, health-conscious Britons drive the highest demand for fruit and vegetables this century. Stay-at-home Brits with more free time have spent more at home cooking since the first lockdown began in 2020.
- Similarly, fruit such as apples, pears, and berries witnessed record growth in 2021, while chestnut mushrooms, strong in vitamin D, saw a significant surge in popularity over the last 12 months. Therefore, the United Kingdom's fruit industry presents a huge corrugated box packaging market.
- Additionally, according to Office for National Statistics (UK), the revenue of the industry's manufacture of corrugated paper and paperboard and containers of paper and paperboard in the United Kingdom will amount to USD 6,15 billion by 2025. The steady increase in the demand for corrugated paper and paperboard from 2015 is supported by increasing utilization in numerous industries for packaging.
