Report forecasts 14.2 percent growth in UK plastic packaging market between 2014-18
A new Market Report from market intelligence provider, Key Note, has forecast the growth of the apparent value of the plastic packaging market in the UK by 14.2 percent between 2014-2018.
The new ‘Packaging (Plastics) 2014*' report suggests the apparent UK market for plastic packaging, including imports and minus exports, has grown impressively in the last five years, despite declining in value by 7.3 percent at manufacturers’ selling prices (msp) between 2012 and 2013.
Yet although this decline represents a setback for the market, primarily attributable to wider economic circumstances, it is not expected to affect long-term growth trends.
Key Note says the substantial growth exhibited since the start of the five-year review period in 2009 of the report, is unsurprising given that the use of plastic packaging in end-use sectors such as food and drink, pharmaceuticals and personal or household care continues to become increasingly widespread in the UK.
The prioritisation of new product developments (NPDs) and technological innovations that improve production and distribution efficiency, extend shelf lives and exploit the growing consumer demand for convenience has been a significant factor behind this growth, it added.
Nevertheless, the report finds the total apparent market decreased in value in 2013, suggesting that there are ongoing threats to stability, including the environmental impact of packaging, as well as issues surrounding stringent recovery and recycling targets that are forcing manufacturers to adapt the way in which they operate to become less reliant on virgin polymers.
The latter is particularly relevant, finds Key Note, considering that global polymer prices rose by 7.8 percent in 2013. “The financial pressure caused by inflated input costs has made trade challenging for small- and medium-sized enterprises (SMEs), and this has been exacerbated by the increasingly global nature of the marketplace,” it states.
Moreover, the report says despite the onset of an apparent economic recovery in the UK, industrial output remains somewhat inconsistent within the context of an international market that continues to be affected by the global financial crisis. This ongoing instability is represented by long-term growth and temporary decline in the UK market for plastic packaging between 2009 and 2013.
Key Note says early indicators suggest that the market will return to growth in 2014, as the economic recovery becomes increasingly established. This will stabilise the market in the next five years, leading to a more consistent level of growth.
*Key Note’s 2014 Market Report, Packaging (Plastics) 2014, analyses the market for plastic packaging in the UK, including bags and sacks, carboys, bottles and flasks, closures, boxes and other forms of plastic packaging.