2020
9
UK Food and Drink Packaging Market Report 2020
2020-08-27T15:51:02+01:00
OX988558
1495
123210
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Report
en_GB
“The COVID-19 outbreak has sharply increased the amount of food people eat at home, feeding through to increased demand for packaging for this. The big focus in food packaging in…

UK Food and Drink Packaging Market Report 2020

£ 1,495 (Excl.Tax)

Description

Providing the most comprehensive and up-to-date information and analysis of the UK Food and Drink Packaging market, including the behaviours, preferences and habits of the consumer.

The UK food and drink packaging market has managed to remain resilient throughout the COVID-19 pandemic, although it has seen decline in some areas as consumer habits have shifted under restrictions. While the overall market has seen a 3.2% decline in 2020, paper and board packaging rose from 48% in 2017 to 50% in 2020, matching the continued trend towards sustainability.

The lockdown restrictions having closed many foodservice venues and hospitality services, the demand for packaging in the hospitality sector plummeted. This was offset somewhat by the increased demand for in-home consumption and retail packaging. The pandemic has also seen an acceleration to ecommerce services, changing people’s shopping habits to rely more on online shopping.

While the environment was becoming an increasing concern, the pandemic has highlighted public awareness of the effects of plastic on the planet. With plastic packaging under scrutiny, many consumers prefer paper and board packaging for being more natural and sustainable. Many packaging manufacturers and brands are continuing to work towards sustainability targets and plastic reduction, with a new tax on plastic packaging by the government set to be introduced in April 2022.

Read on to discover more details or take a look at all of our Food and Foodservice market research.

Quickly understand

  • The impact of COVID-19 on the UK food and drink packaging market.
  • How the increased focus on sustainability is driving innovation across the food and drink packaging sector.
  • Key market drivers for food and drink packaging.
  • How the market is expected to develop over the next five years.

Covered in this report

Packaging Types: Folding cartons, liquid cartons, fibreboard, solid cases and boxes, corrugated cases and boxes, fibreboard drums, packaging paper, multi-walled sacks, paper and packaging bags, moulded paper packaging, rigid paper boxes, drinks cans, bottles (plastic and glass), hermetically sealed packaging, multi-purpose containers, aerosol cans, collapsible tubes, lids and caps.

Brands: Toraphene, DS Smith, Tetra Pak, The Absolute Company, Coca-Cola, Carlsberg, L’Oreal, Waitrose, Sealed Air, Berry Global, WRAP, The British Plastics Federation, Walkers, Pringles, TerraCycle, KP Snacks, Constantia Flexibles, Wikitude, Huhtamaki, PMMI, ePac, Owens-Illinois, direct2glass, PepsiCo, Danone, Nestle, Bacardi, Danimer Scientific, CanO Water.

Expert analysis from a specialist in the field

Written by Claudia Preedy, a leading analyst in the Food & Drink sector, her extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

COVID-19 resulted in plummeting demand for packaging in the foodservice and hospitality sector, but this was partly offset by a shift to in-home consumption and a surge in demand from food and drink into retail. While the pandemic has shifted demand and disrupted supply chains, the food and drink packaging market has shown resilience. COVID-19 is set to accelerate key trends impacting the food and drink packaging market that were already under way prior to the crisis, most notably the increased focus on sustainability and growth in online grocery retail
Claudia Preedy
Food & Drink Analyst

Table of Contents

  1. Overview

    • What you need to know
    • Key issues covered in this Report
    • Report Scope
  2. Executive Summary

    • The market
    • Impact of COVID-19 on food packaging
      • Figure 1: Short, medium and long term impact of COVID-19 on retail food packaging, April 2020
    • UK set to miss 2020 target for recycling
    • Progress being made on plastic reduction
    • Binary recycling labelling being rolled out
    • Plastic tax coming in 2022
    • Companies and brands
    • Plastic removal top of retailers’ agendas
    • Fruit and vegetables a major focus for plastic reduction
    • Retailers make big progress on removing black plastic
    • Packaging-free aisles trialled
    • New packaging accounts for more than a quarter of launches
      • Figure 2: New launches in the UK food market, by launch type, 2015-19
    • Half of launches feature environmentally-friendly packaging claims
      • Figure 3: New product launches in the UK food market carrying environmentally-friendly packaging and recycling claims, 2015-19
    • Plastic still the dominant packaging material
    • The consumer
    • Ocean plastic people’s biggest concern
      • Figure 4: Top consumer concerns relating to food packaging and waste, February 2020
    • Being easy to recycle is important to two thirds of people
    • A quarter see keeping food fresh for longer as important
      • Figure 5: Most important attributes of food packaging, February 2020
    • Re-usable containers most likely to be used for pasta/rice
      • Figure 6: Foods people think they would be likely to use re-useable containers for when shopping in supermarkets, February 2020
    • Use-by or best-before dates the most checked information
      • Figure 7: Information people check on food packaging when shopping, February 2020
    • Huge stated preference for loose fresh fruit/vegetables
    • Consumers taking action to reduce food packaging
      • Figure 8: Behaviours related to food packaging, February 2020
    • People want more from local recycling services
    • Seven in 10 want environmentally-friendly rating system for packaging
      • Figure 9: Attitudes towards food packaging, February 2020
    • What we think
  3. The Impact of COVID-19 on Food Packaging

    • Short, medium and long-term impact on the industry
      • Figure 10: Short, medium and long term impact of COVID-19 on retail food packaging, April 2020
    • Opportunities and Threats
    • Potential risk of critical packaging shortages
    • Demand for refills and loose produce likely to be hit
    • Short-term greater focus on core ranges and essentials
    • Impact on the retail food packaging market
    • Panic buying in initial weeks of outbreak
      • Figure 11: Incidence of stocking up on groceries/other supplies, 28th February-16th April 2020
    • More meals and snacks being eaten at home
      • Figure 12: Expected changes to spend on food for eating at home over the next month compared to usual, surveyed 2nd April- 9th April 2020
    • Contamination worries are widespread but packaging is low risk
    • Packaging industry faces supply and cash flow issues
    • Reported shortage of solvents for packaging
    • Threat to supply of cardboard from recycled fibre
    • Plastics companies expecting a drop in turnover
    • Shifts in consumer behaviour
    • Less demand for loose produce and refills
    • Plastic waste issue likely to take more of a back seat during pandemic
      • Figure 13: The environment as a priority since the COVID-19 outbreak, 16th April-23rd April 2020
    • On-the-go packaging likely to be less important
    • Success of remote working may result in longer-term changes
    • How a COVID-19 recession will reshape the industry
    • Income squeeze will hit discretionary spend
    • Economising habits have proven long lasting
    • Income squeeze puts a spotlight on food waste
    • Impact on the marketing mix
    • Online channel will enjoy a lasting boost
      • Figure 14: Selected behaviour changes since the COVID-19/coronavirus outbreak, 16th April-23rd April 2020
    • COVID-19: Market context
  4. Issues and Insights

    • Consumers taking action to reduce food packaging
    • The facts
    • The implications
    • Seven in 10 want environmentally-friendly rating system for packaging
    • The facts
    • The implications
    • Packaging waste in the environment is biggest waste concern
    • The facts
    • The implications
  5. The Market – What You Need to Know

    • UK set to miss 2020 target for recycling
    • Progress made on plastic reduction
    • New advice on compostable packaging
    • Binary recycling labelling being rolled out
    • Plastic tax coming in 2022
    • Ease of opening more important to older population
    • Progress made on reducing food waste
    • COVID-19 pandemic boosts demand for retail food packaging
  6. Market Drivers

    • UK set to miss 2020 target for recycling
      • Figure 15: Recycling rates for waste from households in England, 2010/11-2018/19*
    • Progress made on plastic reduction
    • New advice on compostable packaging
    • Binary recycling labelling being rolled out
    • Plastic tax coming in 2022
    • Ease of opening more important to older population
      • Figure 16: Trends in the age structure of the UK population, 2014-24
    • Smaller households need smaller packs
      • Figure 17: UK households, by size, 2014 and 2019
    • Progress made on reducing food waste
    • COVID-19 pandemic boosts demand for retail food packaging
  7. Companies and Brands – What You Need to Know

    • Plastic removal top of retailers’ agendas
    • Fruit and vegetables a major focus for plastic reduction
    • Retailers make big progress on removing black plastic
    • Packaging-free aisles trialled
    • New packaging accounts for more than a quarter of launches
    • Half of launches feature environmentally-friendly packaging claims
    • Plastic still the dominant packaging material
    • Compostable packaging is limited
    • Re-sealable is a major element of convenient packaging
    • Brands partner with Terracycle for hard-to-recycle packaging
  8. Industry Strategies on Packaging

    • Plastic removal top of retailers’ agendas
    • Tesco announces targets to reduce plastic
    • Asda aims for 30% recycled plastic by end of 2020
    • Iceland and Unilever cut plastic packaging
    • Fruit and vegetables a major focus for plastic reduction
    • Aldi trials reusable bags for fruit and vegetables
    • Asda tests coating to boost shelf life
    • Iceland trials plastic reduction approaches
    • Morrison’s and Sainsbury’s look to loose produce and paper bags
    • Retailers make big progress on removing black plastic
    • Packaging-free aisles trialled
    • M&S trials refill aisles in two stores
    • Asda plans ‘test and learn’ store
    • Waitrose Unpacked
    • ‘Clear on Plastics’ campaign unveiled by WRAP
    • Sainsbury’s Net Zero by 2040 target
  9. Launch Activity and Innovation

    • New packaging accounts for more than a quarter of launches
      • Figure 18: New launches in the UK food market, by launch type, 2015-19
    • Half of launches feature environmentally-friendly packaging claims
    • Environmentally-friendly packaging claims mostly about recycling
      • Figure 19: New product launches in the UK food market carrying environmentally-friendly packaging and recycling claims, 2015-19
    • 1% claim 100% recyclable
      • Figure 20: Examples of new food launches making ‘100% recyclable’ claims, 2020
    • Paper wrapper for snack bars and component recycling instructions stand out
      • Figure 21: Higgidy Family Kitchen Spinach & Pine Nut Pie and 100% recyclable packaging, 2019
    • Few launches call out use of recycled plastic
    • Moves to reduce or replace plastic in food packaging
      • Figure 22: New launches in the food market, by package material, 2015-19
      • Figure 23: Examples of new food launches highlighting using less plastic, 2020
    • Plastic-free claim remains rare
    • Compostable packaging limited despite consumer interest
      • Figure 24: Examples of new food launches with compostable packaging, 2019/20
    • Premium ready meals opt for wooden trays
      • Figure 25: Examples of new launches of ready meals using wooden trays, 2019/20
    • Re-sealable is a major element of convenient packaging
      • Figure 26: New product launches in the UK food market carrying convenience claims, 2015-19
    • Few launches explore ‘no mess’ convenience
      • Figure 27: Examples of new food launches with ‘no mess’ packaging, 2019/20
    • On-the go claims remain steady in food launches
    • Brands partner with Terracycle for hard-to-recycle packaging
  10. The Consumer – What You Need to Know

    • Ocean plastic people’s biggest concern
    • Food waste is second biggest concern
    • Being easy to recycle is important to two thirds of people
    • A quarter see keeping food fresh for longer as important
    • Re-usable containers most likely to be used for pasta/rice
    • Use-by or best-before dates the most checked information
    • Huge stated preference for loose fresh fruit/vegetables
    • Consumers taking action to reduce food packaging
    • People want more from local recycling services
    • Seven in 10 want environmentally-friendly rating system for packaging
  11. Top Concerns Relating to Food Packaging

    • Ocean plastic is biggest concern
      • Figure 28: Top consumer concerns relating to food packaging and waste, February 2020
    • Waste to landfill and littering are also big concerns
    • Most Important Attributes for Food PackagingTargeting zero waste to landfill for end-user waste
    • Supporting local clean-ups an opportunity for snack food brands
    • Food waste is the second biggest concern
    • Few people think about CO2 emissions
  12. Most Important Attributes for Food Packaging

    • Being easy to recycle is important to two thirds of people
    • Strong interest in recyclability
      • Figure 29: Most important attributes of food packaging, February 2020
    • Recycling depends on local services
    • A quarter see keeping food fresh for longer as important
  13. Likely Usage of Re-usable Containers When Shopping in Supermarkets

    • Re-usable containers most likely to be used for pasta/rice
    • Chilled foods spark least interest
      • Figure 30: Foods people think they would be likely to use re-useable containers for when shopping in supermarkets, February 2020
    • Major retailers trialling packaging-free aisles
  14. Information Checked on Food Packaging When Shopping

    • Use-by or best-before dates the most checked information
      • Figure 31: Information people check on food packaging when shopping, February 2020
    • Four in 10 check list of ingredients on packaging
    • A third check packaging for nutritional content
    • Country of origin important for a quarter of people
  15. Behaviours Related to Food Packaging

    • Huge stated preference for loose fresh fruit/vegetables
    • Eight in 10 report preferring loose fresh produce
    • Shelf life and convenience matter
    • COVID-19 puts the spotlight on hygiene
      • Figure 32: Behaviours related to food packaging, February 2020
    • Consumers taking action to reduce food packaging
    • Two in five report switching brands for sustainable packaging
    • A third interested in smart technology connected to packaging
    • Usage of on-pack QR and AR features is low
  16. Attitudes towards Food Packaging

    • People want more from local recycling services
      • Figure 33: Attitudes towards food packaging, February 2020
    • Seven in 10 want environmentally-friendly rating system for packaging
    • Limited edition packaging benefits from catching the eye
  17. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Consumer research methodology
  18. Appendix – Launch Activity and Innovation

      • Figure 34: New launches in the food market, by claim, 2015-20
      • Figure 35: New launches in the food market, by package material, 2015-20

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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Consumer

Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

Brand/Company

Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

Data

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*databooks not available with UK B2B Industry reports.

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