United Kingdom Plastic Packaging Market Size

UK Plastic Packaging Market Analysis

The UK plastic packaging market is expected to register a CAGR of 2.87% during the forecast period. In a few places, COVID-19 was used as a way to bring back single-use plastic bags rather than accepting reusable ones. The increasing popularity of PET packaging products helped it considerably gain market shares in the past few years. The quality of plastic bottles is constantly improving as they gain access to other segments that traditionally have used other materials.

The UK packaging industry is expanding significantly due to the region's expanding industrial sector, which is driving up demand for packaging services there. The UK packaging manufacturing industry generated GBP 11 billion (USD 13.59 billion) in annual sales, according to the Packaging Federation of the United Kingdom. It employs more than 85,000 people, representing 3% of the manufacturing workforce in the United Kingdom. Furthermore, it plays a crucial role in the larger packaging supply chain and contributes significantly to the UK GDP.

The packaging sector in the United Kingdom is largely composed of plastic packaging. Furthermore, due to extensive manufacturing capabilities, it is expected that the UK market for plastic packaging would generate a sizeable amount of income. The UK Parliament estimates that five million tons of plastic are used there annually, with packaging accounting for approximately half of that.

Due to the growth of the flexible packaging industry, plastics are also in demand in the United Kingdom. The market need is being helped by both the expansion of international vendors in this area and the acquisition of local businesses.

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. That indicates even more growth for greener packaging in a country that has already shown innovative diversity.

Brexit is anticipated to increase plastic packaging costs in the United Kingdom due to rising trade regulations between the European Union and the United Kingdom, a shortage of skilled labor, a loss of competitiveness for local resin producers, and a decline in plastic recycling rates, all of which could potentially have an impact on the country's plastic packaging industry.

With the outbreak of COVID-19, the UK packaging market witnessed a decline in growth, owing to the widespread lockdown measures adopted by the government and supply chain disruptions. All the sectors, except healthcare and food and beverage, were shut down in the country. There has also been an impact of the Russia-Ukraine war on the overall packaging ecosystem.