2021
9
UK Food and Drink Packaging Market Report 2021
2021-12-03T03:07:14+00:00
OX1050515
1495
145974
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Report
en_GB
 “COVID-19 has accelerated key trends impacting the food and drink packaging market that were already underway prior to the crisis, most notably the increased focus on sustainability and growth in…

UK Food and Drink Packaging Market Report 2021

£ 1,495 (Excl.Tax)

Description

The UK Food & Drink Packaging report identifies consumer attitudes towards trends in food and drink packaging, sustainable food and drink packaging, and the industry structure in the UK. This market report covers the food and drink market size, market forecast, market segmentation and industry trends for the Food & Drink Packaging market in the UK.

Current Market Landscape

With plastic packaging coming under increased scrutiny, the paper and board packaging market has massively benefited, with the material now seen as an obvious natural and sustainable substitute for plastic food packaging.

  • The UK market for food and drink packaging declined by 2% in 2020, partly offset by an estimated 1% increase in 2021.
  • Growth in the food and drink packaging market is expected to peak at 2.5% in 2022.
  • The paper and board packaging market rose from 48% in 2017 to 51% in 2021.

COVID-19 resulted in plummeting demand for packaging in the 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. The pandemic has impacted manufacturers’ operations, including disruptions to supply chains and workforce, as well as higher raw material prices, resulting in rising production costs.

Future Market Trends in Food & Drink Packaging Retailing 

Sustainability and plastic replacement have become a major focus for retailers and manufacturers, with many working towards packaging sustainability targets by 2025. Government regulations are also becoming more stringent, with a new tax on plastic packaging with less than 30% recycled plastic to be introduced in April 2022. Thus plastic packaging is set to further lose market share to alternative materials over the coming years.

Connected packaging is experiencing renewed momentum, partly due to mobile technologies such as QR codes being used more widely during the pandemic. Packaging can be turned into a digital marketing channel by increasing transparency about product provenance, ingredients, the brand’s increasingly important sustainability credentials and the product’s carbon footprint. Companies also increasingly adopt connected packaging to respond to the greater desire by consumers for a more personalised experiences when they interact with brands.

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

Quickly understand

  • The impact of COVID-19 on the UK food and drink packaging market.
  • How the sustainability and plastic replacement agenda is driving innovation across the food and drink packaging sector.
  • How the growth in online grocery retail is altering packaging demands.
  • How the industry structure is developing.
  • How the market is expected to develop over the next five years.

Covered in this report

Products: Folding cartons, liquid cartons (laminated paper, plastic-coated board, aluminium foil-coated board), fibreboard, solid cases, boxes, corrugated cases, corrugated boxes, fibreboard drums, packaging paper, multi-walled sacks, paper and packaging bags, moulded paper packaging (egg boxes, fast food trays), rigid paper boxes, glass packaging, light metal packaging.

Brands: Ardagn Group, Tribium Packaging, DS Smith, Huhtamaki, O-I Glass, VPK Packaging, RPC Group, Berry, Saica Pack UK.

Expert analysis from a specialist in the field

This report, written by Claudia Preedy, a leading analyst in the Food and Drink sector, delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

COVID-19 has accelerated key trends impacting the food and drink packaging market that were already underway prior to the crisis, most notably the increased focus on sustainability and growth in online grocery retail. Packaging companies need to help customers respond to these growing trends, by working with them more collaboratively and offering more innovative, tailor-made and closed-loop packaging solutions.

Claudia Preedy
Senior B2B Analyst

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • COVID-19: market context
    • Economic and other assumptions
    • Products covered in this Report
  2. Executive Summary

    • The long-term structural growth drivers of e-commerce and sustainability have been accelerated by COVID-19
      • Figure 1: Short-, medium- and long-term impact of COVID-19 on food and drink packaging, 2020-25
    • The market
    • UK food and drink packaging market expected to return to moderate growth in 2021
      • Figure 2: The UK market for food and drink packaging, by sector, 2017-21
    • Food packaging
      • Figure 3: The UK food packaging market, by packaging material, 2021 (£ million and %)
    • Drink packaging
      • Figure 4: The UK drink packaging market, by packaging material, 2021 (£ million and %)
    • Sustainability and circularity set to be key market drivers over the next five years
      • Figure 5: Forecast UK food & drink packaging market, by sector, 2022-26
    • Trends and influences
    • Plastic packaging under scrutiny
    • Growth in online grocery shopping drives innovation in sustainable packaging
    • Companies and brands
    • Growing level of consolidation
  3. Issues and Insights

    • COVID-19 accelerates growth in online grocery retail, which is altering packaging demands
    • Sustainability, circularity and plastic replacement remain major industry focus
  4. Market Size and Performance

    • The COVID-19-accelerated trends of online grocery shopping and increased focus on sustainability lead to evolving packaging demands
      • Figure 6: Short-, medium- and long-term impact of COVID-19 on food and drink packaging, 2020-25
    • Market overview
      • Figure 7: The UK market for food and drink packaging, by sector, 2017-21
      • Figure 8: The UK market for food and drink packaging, by sector, 2017-21
    • Food packaging
      • Figure 9: The UK food packaging market, by packaging material, 2017-21
      • Figure 10: The UK food packaging market, by packaging material, 2017-21
    • Drink packaging
      • Figure 11: The UK drink packaging market, by packaging material, 2017-21
      • Figure 12: The UK drink packaging market, by packaging material, 2017-21
  5. Supply Sources

    • Production
    • Paper and board
      • Figure 13: UK production of paper & board packaging, by type, 2017-21 (£ million at MSP)
      • Figure 14: UK production of paper & board packaging, 2017-21 (£ million at MSP)
    • Plastic
      • Figure 15: UK production of plastic packaging, by type, 2017-21 (£ million at MSP)
      • Figure 16: UK production of plastic packaging, 2017-21 (£ million at MSP)
    • Light metal
      • Figure 17: UK production of light metal packaging, by type, 2017-21 (£ million at MSP)
      • Figure 18: UK production of light metal packaging, 2017-21 (£ million at MSP)
    • Glass
      • Figure 19: UK production of glass packaging, by type, 2017-21 (£ million at MSP)
      • Figure 20: UK production of glass packaging, 2017-21 (£ million at MSP)
    • Imports
    • Paper and board
      • Figure 21: UK imports of paper & board packaging, by type, 2017-21 (£ million at CIF)
      • Figure 22: UK imports of paper & board packaging, 2017-21 (£ million at CIF)
    • Plastic
      • Figure 23: UK imports of plastic packaging, by type, 2017-21 (£ million at CIF)
      • Figure 24: UK imports of plastic packaging, 2017-21 (£ million at CIF)
    • Light metal
      • Figure 25: UK imports of light metal packaging, by type, 2017-21 (£ million at CIF)
      • Figure 26: UK imports of light metal packaging, 2017-21 (£ million at CIF)
    • Glass
      • Figure 27: UK imports of glass packaging, by type, 2017-21 (£ million at CIF)
      • Figure 28: UK imports of glass packaging, 2017-21 (£ million at CIF)
    • Exports
    • Paper and board
      • Figure 29: UK exports of paper & board packaging, by type, 2017-21 (£ million at FOB)
      • Figure 30: UK exports of paper & board packaging, 2017-21 (£ million at FOB)
    • Plastic
      • Figure 31: UK exports of plastic packaging, by type, 2017-21 (£ million at FOB)
      • Figure 32: UK exports of plastic packaging, 2017-21 (£ million at FOB)
    • Light metal
      • Figure 33: UK exports of light metal packaging, by type, 2017-21 (£ million at FOB)
      • Figure 34: UK exports of light metal packaging, 2017-21 (£ million at FOB)
    • Glass
      • Figure 35: UK exports of glass packaging, by type, 2017-21 (£ million at FOB)
      • Figure 36: UK exports of glass packaging, 2017-21 (£ million at FOB)
  6. Market Forecast

    • Market drivers and assumptions
      • Figure 37: Key drivers affecting MBD’s market forecast, 2020-26
    • Forecast methodology
    • Sustainability and circularity set to be key market drivers over the next five years
      • Figure 38: Forecast UK food & drink packaging market, by sector, 2022-26 (£ million at 2021 prices)
      • Figure 39: Forecast UK food & drink packaging market, by sector, 2022-26
    • Food packaging forecast
      • Figure 40: Forecast UK food packaging market, by material, 2022-26 (£ million at 2021 prices)
    • Drink packaging forecast
      • Figure 41: Forecast UK drink packaging market, by material, 2022-26 (£ million at 2021 prices)
  7. Market Trends

    • Sustainability, circularity and plastic replacement remain the key trends across the food and drink packaging market
    • Plastic packaging industry focuses on making the material more sustainable, reusable and recyclable
    • Brands partner with TerraCycle/Loop for hard-to-recycle and refillable packaging
    • Increased adoption of smart and connected packaging
    • Trend towards digital printing facilitates more customisation and small print runs
    • Drinks manufacturers pivot away from plastic bottles to rPET bottles and alternative materials
  8. Market Drivers

    • Plastic packaging under scrutiny
    • UK Plastics Pact aims to create circular economy for plastics
    • WRAP sets out roadmap to recycle flexible plastic
    • Major FMCG companies and retailers join forces to tackle flexible plastic recycling and increase the supply of recycled plastic
    • New advice on compostable packaging
    • Progress made on reducing food waste
    • Rise in single-person households strengthens demand for smaller pack sizes and compact packaging
      • Figure 42: Single-person household projections, England, 2018-43
    • Ease of opening more important to older population
      • Figure 43: Trends in the age structure of the UK population, 2018-28
    • Online grocery sales accelerated during COVID-19 pandemic
    • Growth in online grocery shopping drives innovation in sustainable packaging
      • Figure 44: Annual % change in all grocery retail sales and store-based online grocery retail sales, 2019-21
    • Rising inflation expected to encourage “shrinkflation” and changes in shopping habits
      • Figure 45: Consumer Price Index annual rate, 2010-26
  9. Regulatory and Legislative Changes

    • Government actions and proposals to tackle plastic and packaging waste
    • Key measures set out in Resources and Waste Strategy to be introduced through the Environment Bill
  10. 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, 2017-21 (number of outlets and businesses)
      • Figure 47: Analysis of the employment structure of the corrugated paper & paperboard and of containers of paper and paperboard manufacturing industry, 2020 and 2021 (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, 2020 and 2021 (£000 and number of companies)
    • Plastic packaging industry
      • Figure 49: Analysis of the changes in the structure of the plastic packaging goods manufacturing industry, 2017-21 (number of outlets and businesses)
      • Figure 50: Analysis of the employment structure of the plastic packaging goods manufacturing industry, 2020 and 2021 (number of outlets and employees)
      • Figure 51: Analysis of the financial structure of the plastic packaging goods manufacturing industry, 2020 and 2021 (£000 and number of companies)
    • Light metal packaging industry
      • Figure 52: Analysis of the changes in the structure of the light metal packaging manufacturing industry, 2017-21 (number of outlets and businesses)
      • Figure 53: Analysis of the employment structure of the light metal packaging manufacturing industry, 2020 and 2021 (number of outlets and employees)
      • Figure 54: Analysis of the financial structure of the light metal packaging manufacturing industry, 2020 and 2021 (£000 and number of companies)
    • Glass packaging industry
      • Figure 55: Analysis of the changes in the structure of the hollow glass manufacturing industry, 2017-21 (number of outlets and businesses)
      • Figure 56: Analysis of the employment structure of the hollow glass manufacturing industry, 2020 and 2021 (number of outlets and employees)
      • Figure 57: Analysis of the financial structure of the hollow glass manufacturing industry, 2020 and 2021 (£000 and number of companies)
  11. 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
      • Figure 58: Financial analysis of Ardagh Glass, 2016-20 (£000)
      • Figure 59: Financial analysis of Trivium Packaging UK, 2016-20 (£000)
      • Figure 60: Financial analysis of Ardagh Metal Beverage Trading UK, 2015-19 (£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
    • Recent acquisitions
    • Company’s financial growth largely driven by the strength in the ecommerce and consumer sectors
      • Figure 61: Financial analysis of DS Smith, 2017-21 (£ million)
    • Huhtamaki (UK)
    • Group strategy
    • Recent activity
    • Financial performance
      • Figure 62: Financial analysis of Huhtamaki (UK), 2015-19 (£000)
      • Figure 63: Turnover analysis of Huhtamaki (UK), by geographic segment, 2015-19 (£000)
    • O-I Glass
    • O-I reveals ambitious global investment strategy
    • Financial performance
      • Figure 64: Financial analysis of O-I Glass, 2016-20 (£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
    • Company performance
      • Figure 65: Financial analysis of VPK Packaging, 2016-20 (£000)
    • RPC Group/Berry
    • RPC Group’s acquisition by Berry Global creates one of the world’s largest plastic packaging companies
    • Financial performance
      • Figure 66: Financial analysis of RPC Group, 2015-19 (£ million)
      • Figure 67: Financial analysis of RPC Group, by geographic segment, 2016-19 (£ million)
    • Saica Pack UK
    • Financial performance
      • Figure 68: Financial analysis of Saica Pack UK, 2016-20 (£000)
  12. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Methodology
  13. 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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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

Market reports provide appendices of data to support the research and insight produced. Our databooks* are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.

*databooks not available with UK B2B Industry reports.

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