UK Food and Drink Packaging Market Report 2022
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Description
The UK Food and Drink Packaging Market Report examines how companies are responding to key challenges in the food and drink packaging market, how sustainability and plastic replacement agenda are driving innovation and the impact of the cost of living crisis on the food and drink packaging market. This report covers the food and drink packaging market size, market forecast, market segmentation and sustainable packaging trends.
Food Packaging Market
The UK food and drink packaging market is anticipated to decline by 0.7% in 2023, reflecting adverse macroeconomic conditions. However, as food and drink categories are relatively resilient in an adverse economic environment, the impact of a recession is expected to be less severe on the food and drink packaging market than on other manufacturing sectors. Packaging manufacturers will continue to grapple with higher input costs for the foreseeable future, resulting in higher selling prices for consumers.
Food and Drink Packaging Market: Key industry trends
The focus on sustainability and plastic packaging waste reduction will drive product development innovation in the packaging sector, with many brands and retailers working towards 2025 sustainable packaging trends. However, surging consumer inflation sees some brands and retailers push back their plastic packaging reduction targets due to the potential cost implications for customers.
Food and Drink Packaging Market Share & Size
- Paper and board packaging accounts for the largest share of the food packaging market and has seen its share rise from 49% in 2018 to a projected 54% in 2022.
- Mintel estimates that the food and drink packaging market size is projected to increase by 8%, growing to £8.4 billion in 2022.
Food and Drink Packaging Market: Future trends
In the longer term, in order to address the sustainability and circularity packaging agenda, the food and drink packaging market will need to produce a commercial-scale solution to address hard-to-recycle flexible packaging. These sustainable packaging trends require the food and drink packaging market to work more collaboratively with customers, machinery producers, suppliers and innovators to offer more responsible, tailor-made, less complex and, where possible, closed-loop packaging solutions.
To discover more about the UK Food and Drink Packaging Market Report 2022, read our UK Household Care Packaging Trends Market Report 2022, or take a look at our Packaging Market Research Reports.
Quickly Understand
- How the food and drink packaging market has emerged from the disruption of COVID-19 but now faces difficult economic conditions.
- How companies are responding to key challenges facing the food and drink packaging market.
- How the sustainability and plastic replacement agenda drives innovation across the food and drink packaging market.
- Key market drivers and how the food and drink packaging market is expected to develop over the next five years.
- Explores food and drink packaging market size and share.
Covered in this Report
Brands: Trivium Packaging, UK Plastics Pact, WRAP, Morrisons, Co-op, Lidl, Asda, Tesco, Sainsbury’s, Flexcollect, Continental Bottle Company, TricorBraun, Berry Global Group, Coca-cola, PepsiCo, Suntory Beverage, Britvic UK, Carlsberg, L’Oréal, Absolut Company, Tetra Pak.
Products: Food and drink packaging: paper and board, plastic glass and light metal packaging.
Expert Analysis from a Specialist in the B2B Sector
This report, written by Claudia Preedy, a leading analyst in the B2B sector, delivers in-depth commentary and analysis to highlight current trends in the food and drink packaging market and add expert context to the numbers.
The focus on sustainability, plastic packaging waste reduction and circularity drives market and product development. This reflects shifts in consumer sentiment towards a greater awareness of sustainability and efforts by food and drink manufacturers and retailers to improve their sustainability credentials. Legislative changes, such as the Plastic Packaging Tax and the forthcoming Extended Producer Responsibility scheme, are further accelerating the trend towards more responsible packaging.”
Claudia Preedy
Senior B2B Analyst
Table of Contents
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Overview
- Key issues covered in this Report
- Products covered in this Report
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Executive Summary
- The five-year outlook for food and drink packaging
- Figure 1: The five-year outlook for food and drink packaging, 2022-27
- The market
- Surging prices mask a more moderate market development in volume terms in 2022
- Figure 2: The UK market for food and drink packaging, by sector, 2018-22
- Food packaging
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- Figure 3: The UK food packaging market, by packaging material, 2022 (£ million and %)
- Drink packaging
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- Figure 4: The UK drink packaging market, by packaging material, 2022 (£ million and %)
- Sustainability and circularity remain key market drivers
- Figure 5: Forecast UK food and drink packaging market, by sector, 2022-26
- Companies and brands
- Growing level of consolidation
- The five-year outlook for food and drink packaging
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Issues and Insights
- Sustainability, circularity and plastic replacement remain major industry focus
- Efforts to develop a system for recycling flexible plastics
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Market Size and Performance
- Market overview
- Figure 6: The UK market for food and drink packaging, by sector, 2018-22
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- Figure 7: The UK market for food and drink packaging, by sector, 2018-22
- Food packaging
- Paper and board packaging
- Plastic packaging
- Light metal packaging
- Glass packaging
- Figure 8: The UK food packaging market, by packaging material, 2018-22
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- Figure 9: The UK food packaging market, by packaging material, 2018-22
- Drink packaging
- Light metal packaging
- Plastic packaging
- Glass packaging
- Paper and board packaging
- Figure 10: The UK drink packaging market, by packaging material, 2018-22
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- Figure 11: The UK drink packaging market, by packaging material, 2018-22
- Market overview
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Market Forecast
- The five-year outlook for UK food and drink packaging
- Figure 12: The five-year outlook for food and drink packaging, 2022-27
- Sustainability and circularity remain key market drivers
- Figure 13: Forecast UK food and drink packaging market, by sector, 2023-27 (£ million at 2022 prices)
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- Figure 14: Forecast UK food and drink packaging market, by sector, 2023-27
- Food packaging forecast
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- Figure 15: Forecast UK food packaging market, by material, 2023-27 (£ million at 2022 prices)
- Drink packaging forecast
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- Figure 16: Forecast UK drink packaging market, by material, 2023-27 (£ million at 2022 prices)
- Learnings from the last recession
- Figure 17: Industry performance following the last recession, 2008-16 (£ million)
- Forecast methodology
- The five-year outlook for UK food and drink packaging
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Supply Sources
- Production
- Paper and board
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- Figure 18: UK production of paper and board packaging, by type, 2018-22 (£ million at MSP)
- Figure 19: UK production of paper and board packaging, 2018-22 (£ million at MSP)
- Plastic
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- Figure 20: UK production of plastic packaging, by type, 2018-22 (£ million at MSP)
- Figure 21: UK production of plastic packaging, 2018-22 (£ million at MSP)
- Light metal
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- Figure 22: UK production of light metal packaging, by type, 2018-22 (£ million at MSP)
- Figure 23: UK production of light metal packaging, 2018-22 (£ million at MSP)
- Glass
- Figure 24: UK production of glass packaging, by type, 2018-22 (£ million at MSP)
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- Figure 25: UK production of glass packaging, 2018-22 (£ million at MSP)
- Imports
- Paper and board
- Figure 26: UK imports of paper and board packaging, by type, 2018-22 (£ million at CIF)
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- Figure 27: UK imports of paper and board packaging, 2018-22 (£ million at CIF)
- Plastic
- Figure 28: UK imports of plastic packaging, by type, 2018-22 (£ million at CIF)
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- Figure 29: UK imports of plastic packaging, 2018-22 (£ million at CIF)
- Light metal
- Figure 30: UK imports of light metal packaging, by type, 2018-22 (£ million at CIF)
- Figure 31: UK imports of light metal packaging, 2018-22 (£ million at CIF)
- Glass
- Figure 32: UK imports of glass packaging, by type, 2018-22 (£ million at CIF)
- Figure 33: UK imports of glass packaging, 2018-22 (£ million at CIF)
- Exports
- Paper and board
- Figure 34: UK exports of paper and board packaging, by type, 2018-22 (£ million at FOB)
- Figure 35: UK exports of paper and board packaging, 2018-22 (£ million at FOB)
- Plastic
- Figure 36: UK exports of plastic packaging, by type, 2018-22 (£ million at FOB)
- Figure 37: UK exports of plastic packaging, 2018-22 (£ million at FOB)
- Light metal
- Figure 38: UK exports of light metal packaging, by type, 2018-22 (£ million at FOB)
- Figure 39: UK exports of light metal packaging, 2018-22 (£ million at FOB)
- Glass
- Figure 40: UK exports of glass packaging, by type, 2018-22 (£ million at FOB)
- Figure 41: UK exports of glass packaging, 2018-22 (£ million at FOB)
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Market Trends
- Innovation across the food and drink packaging industry remains focused on sustainability, circularity and packaging reduction
- Growing interest in reusable and refillable packaging, but obstacles to wider uptake need to be overcome
- Technology is key to scaling up reusable and refillable packaging solutions
- Plastic packaging industry focuses on making the material more sustainable, reusable and recyclable
- Connected packaging
- Trend towards digital printing facilitates more customisation and small print runs
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Market Drivers
- Plastic packaging under scrutiny
- UK Plastics Pact aims to create circular economy for plastics
- WRAP sets out roadmap to recycle flexible plastic
- Flexible plastic packaging recycling initiatives
- Concerns surrounding flexible plastic packaging recycling schemes
- Issues surrounding compostable packaging
- Efforts to reduce food waste
- Rise in single-person households strengthens demand for smaller pack sizes and compact packaging
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- Figure 42: Single-person household projections, England, 2018-43
- Ease of opening more important to older population
- Online grocery retail
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- Figure 44: Annual % change in all grocery retail sales and store-based online grocery retail sales, 2019-22
- Growth in online grocery shopping drives innovation in sustainable packaging
- Surging inflation encourages “shrinkflation” and changes in shopping habits
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- Figure 45: Consumer Prices Index annual rate, 2010-27
- Rising interest rates mean that the pressure will move up to middle- and higher-income households
- High inflation and rising interest rates will weigh down the post-COVID recovery
- Consumer spending power will be curbed
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Regulatory and Legislative Changes
- Government actions to tackle packaging waste and drive recycling rates
- New EPR framework for packaging
- Plastic Packaging Tax
- Deposit Return Scheme
- Consistency in recycling collections
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Industry Structure
- Growing level of consolidation
- Corrugated paper and paperboard packaging industry structure
- Figure 46: Analysis of the changes in the structure of the corrugated paper & paperboard and of containers of paper and paperboard manufacturing industry, 2018-22 (number of outlets and businesses)
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- Figure 47: Analysis of the employment structure of the corrugated paper & paperboard and of containers of paper and paperboard manufacturing industry, 2021 and 2022 (number of outlets and employees)
- Figure 48: Analysis of the financial structure of the corrugated paper & paperboard and of containers of paper and paperboard manufacturing industry, 2021 and 2022 (£000 and number of companies)
- Plastic packaging industry
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- Figure 49: Analysis of the changes in the structure of the plastic packaging goods manufacturing industry, 2018-22 (number of outlets and businesses)
- Figure 50: Analysis of the employment structure of the plastic packaging goods manufacturing industry, 2021 and 2022 (number of outlets and employees)
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- Figure 51: Analysis of the financial structure of the plastic packaging goods manufacturing industry, 2021 and 2022 (£000 and number of companies)
- Light metal packaging industry
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- Figure 52: Analysis of the changes in the structure of the light metal packaging manufacturing industry, 2018-22 (number of outlets and businesses)
- Figure 53: Analysis of the employment structure of the light metal packaging manufacturing industry, 2021 and 2022 (number of outlets and employees)
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- Figure 54: Analysis of the financial structure of the light metal packaging manufacturing industry, 2021 and 2022 (£000 and number of companies)
- Glass packaging industry
- Figure 55: Analysis of the changes in the structure of the hollow glass manufacturing industry, 2018-22 (number of outlets and businesses)
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- Figure 56: Analysis of the employment structure of the hollow glass manufacturing industry, 2021 and 2022 (number of outlets and employees)
- Figure 57: Analysis of the financial structure of the hollow glass manufacturing industry, 2021 and 2022 (£000 and number of companies)
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Company Profiles
- Ardagh Group/Trivium Packaging
- Recent mergers and acquisitions
- Group strategy
- Ardagh Group rolls out significant investment programme as it seeks to double drinks cans earnings
- Financial performance
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- Figure 58: Financial analysis of Ardagh Glass, 2017-21 (£000)
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- Figure 59: Financial analysis of Trivium Packaging UK, 2017-21 (£000)
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- Figure 60: Financial analysis of Ardagh Metal Packaging Trading UK, 2017-21 (£000)
- DS Smith
- Company strategy
- DS Smith launches new Now and Next Sustainability Strategy
- New £100 million research and development programme to minimise plastic content in its packaging
- Strong financial performance despite volatile trading conditions
- Figure 61: Financial analysis of DS Smith, 2018-22 (£ million)
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- Figure 62: Regional turnover analysis of DS Smith, 2022 (£ million and %)
- O-I Glass
- O-I reveals ambitious global investment strategy
- Group strategy
- Financial performance
- Figure 63: Financial analysis of O-I Glass, 2017-21 (£000)
- VPK Packaging (formerly Rigid Containers)
- Rigid Containers rebrands as VPK Packaging, in move designed to increase market share
- VPK Packaging merger with Encase
- Company strategy
- Financial performance
- Figure 64: Financial analysis of VPK Packaging, 2017-21 (£000)
- RPC Containers
- Financial performance
- Figure 65: Financial analysis of RPC Containers, 2017-21 (£ million)
- Saica Pack UK
- Financial performance
- Figure 66: Financial analysis of Saica Pack UK, 2017-21 (£000)
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Appendix – Data Sources, Abbreviations and Supporting Information
- Abbreviations
- Methodology
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Further Sources and Contacts
- Trade associations
- Trade magazines
- Trade events
About the report
This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.
Market
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Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.
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Data
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*databooks not available with UK B2B Industry reports.
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