Table of Contents
Executive Summary
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- Impact of COVID-19 on the food and drink packaging sector
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- Figure 1: Short-, medium- and long-term impact of COVID-19 on food and drink packaging, 3 December 2020
- The market
- UK food and drink packaging market projected to contract by 3.2% to £7.38 billion in 2020
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- Figure 2: The UK market for food and drink packaging, by sector, 2016-20
- Plastic waste under increased scrutiny
- Packaging companies need to respond to rapidly evolving ecommerce market
- Sustainability set to be a key driver in food and drink packaging market over the next five years
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- Figure 3: Forecast UK food & drink packaging market, by sector, 2021-25
- Companies and brands
- Packaging industry continues to consolidate
- R&D focussed on sustainability and smart packaging
Issues and Insights
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- COVID-19 boost to food and drink retail sales shifts packaging requirements
- Smart packaging set for good growth
The Market – Key Takeaways
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- UK food and drink packaging market projected to contract by 3% in 2020, largely as a result of COVID-19
- Plastic packaging under increased scrutiny
- Increased focus on sustainability set to be a key driver in food and drink packaging market over the next five years
Market Size
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- Overview
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- Figure 4: The UK market for food and drink packaging, by sector, 2016-20
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- Figure 5: The UK market for food and drink packaging, by sector, 2016-20
- Food packaging
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- Figure 6: The UK food packaging market, by packaging material, 2016-20
- Figure 7: The UK food packaging market, by packaging material, 2016-20
- Drink packaging
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- Figure 8: The UK drink packaging market, by packaging material, 2016-20
- Figure 9: The UK drink packaging market, by packaging material, 2016-20
Supply Sources
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- Production
- Paper and board
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- Figure 10: UK production of paper & board packaging, by type, 2016-20, (£ million at MSP)
- Figure 11: UK production of paper & board packaging, 2016-20, (£ million at MSP)
- Plastic
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- Figure 12: UK production of plastic packaging, by type, 2016-20, (£ million at MSP)
- Figure 13: UK production of plastic packaging, 2016-20, (£ million at MSP)
- Light metal
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- Figure 14: UK production of light metal packaging, by type, 2016-20, (£ million at MSP)
- Figure 15: UK production of light metal packaging, 2015-19, (£ million at MSP)
- Glass
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- Figure 16: UK production of glass packaging, by type, 2016-20, (£ million at MSP)
- Figure 17: UK production of glass packaging, 2016-20, (£ million at MSP)
- Imports
- Paper and board
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- Figure 18: UK imports of paper & board packaging, by type, 2015-19, (£ million at CIF)
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- Figure 19: UK imports of paper & board packaging, 2016-20, (£ million at CIF)
- Plastic
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- Figure 20: UK imports of plastic packaging, by type, 2016-20, (£ million at CIF)
- Figure 21: UK imports of plastic packaging, 2016-20, (£ million at CIF)
- Light metal
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- Figure 22: UK imports of light metal packaging, by type, 2016-20, (£ million at CIF)
- Figure 23: UK imports of light metal packaging, 2016-20, (£ million at CIF)
- Glass
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- Figure 24: UK imports of glass packaging, by type, 2016-20, (£ million at CIF)
- Figure 25: UK imports of glass packaging, 2016-20, (£ million at CIF)
- Exports
- Paper and board
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- Figure 26: UK exports of paper & board packaging, by type, 2016-20, (£ million at FOB)
- Figure 27: UK exports of paper & board packaging, 2016-20, (£ million at FOB)
- Plastic
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- Figure 28: UK exports of plastic packaging, by type, 2016-20, (£ million at FOB)
- Figure 29: UK exports of plastic packaging, 2016-20, (£ million at FOB)
- Light metal
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- Figure 30: UK exports of light metal packaging, by type, 2016-20, (£ million at FOB)
- Figure 31: UK exports of light metal packaging, 2016-20, (£ million at FOB)
- Glass
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- Figure 32: UK exports of glass packaging, by type, 2016-20, (£ million at FOB)
- Figure 33: UK exports of glass packaging, 2015-19, (£ million at FOB)
Market Forecast
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- Short-, medium- and long-term impact of COVID-19 on the food and drink packaging sector
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- Figure 34: Short-, medium- and long-term impact of COVID-19 on food and drink packaging, 3 December 2020
- Initial lockdown
- Re-emergence
- Recovery
- Market drivers and assumptions
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- Figure 35: Key drivers affecting MBD’s market forecast, 2019-2025 (prepared on 1 December 2020)
- Forecast methodology
- Increased focus on sustainability set to be a key driver in food and drink packaging market over the next five years
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- Figure 36: Forecast UK food & drink packaging market, by sector, 2021-25, (£ million at 2020 prices)
- Figure 37: Forecast UK food & drink packaging market, by sector, 2021-25
- Food packaging forecast
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- Figure 38: Forecast UK Food packaging market, by material, 2021-25, (£ million at 2020 prices)
- Drink packaging forecast
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- Figure 39: Forecast UK drink packaging market, by material, 2021-25, (£ million at 2019 prices)
Market Trends
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- Focus on sustainability and plastic replacement remains key trend in food and drink packaging market
- Plastic packaging industry focusses on making the material more sustainable, reusable and recyclable
- Brands partner with TerraCycle for hard-to-recycle and refillable packaging
- Smart packaging
- Trend towards digital printing facilitates more customisation and small print runs
- Drinks manufacturers pivot away from plastic bottles or shift to rPET bottles
Market Drivers
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- Plastic packaging comes under increased scrutiny
- Government proposals and actions to tackle plastic and packaging waste
- UK Plastic Pact aims to create circular economy for plastics
- New advice on compostable packaging
- WRAP sets out roadmap to recycle flexible plastic
- Binary recycling labelling launched to simplify plastic packaging recycling process
- Progress made on reducing food waste
- Rise in single-person households strengthens demand for smaller pack sizes and compact packaging
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- Figure 40: Single-person household projections, England, 2016-41
- Ease of opening more important to older population
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- Figure 41: trends in the age structure of the UK population, 2014-24
- COVID-19 pandemic boosts demand for retail food and drink packaging
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- Figure 42: Year-on-year retail sales value growth in food & drink supermarkets, August 2019- August 2020
Companies and Brands – Key Takeaways
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- O-I commits to largest investment in Europe in 20 years to meet growing demand for sustainable glass packaging
- Merger of Ardagh’s food and speciality metal packaging business with Exal creates one of the largest metal packaging companies worldwide
- RPC Group acquired by Berry Global, creating one of the world’s largest plastic packaging companies
- DS Smith sells plastic division to focus on sustainable fibre based packaging
- VPK Packaging merger with Encase
Industry Structure
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- Packaging industry continues to consolidate
- Corrugated paper and paperboard packaging industry structure
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- Figure 43: Analysis of the changes in the structure of the corrugated paper & paperboard and of containers of paper and paperboard manufacturing industry, 2016-20, (number of outlets and businesses)
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- Figure 44: Analysis of the employment structure of the corrugated paper & paperboard and of containers of paper and paperboard manufacturing industry, 2019-20, (number of outlets and employees)
- Figure 45: Analysis of the financial structure of the corrugated paper & paperboard and of containers of paper and paperboard manufacturing industry, 2019-20, (£000 and number of companies)
- Plastic packaging industry
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- Figure 46: Analysis of the changes in the structure of the plastic packaging goods manufacturing industry, 2016-20, (number of outlets and businesses)
- Figure 47: Analysis of the employment structure of plastic packaging goods manufacturing industry, 2019-20, (number of outlets and employees)
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- Figure 48: Analysis of the financial structure of plastic packaging goods manufacturing industry, 2019-20, (£000 and number of companies)
- Light metal packaging industry
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- Figure 49: Analysis of the changes in the structure of the light metal packaging manufacturing industry, 2016-20, (number of outlets and businesses)
- Figure 50: Analysis of the employment structure of light metal packaging manufacturing industry, 2019-20, (number of outlets and employees)
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- Figure 51: Analysis of the financial structure of light metal packaging manufacturing industry, 2018-19, (£000 and number of companies)
- Glass packaging industry
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- Figure 52: Analysis of the changes in the structure of the hollow glass manufacturing industry, 2016-20, (number of outlets and businesses)
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- Figure 53: Analysis of the employment structure of the hollow glass manufacturing industry, 2019-20, (number of outlets and employees)
- Figure 54: Analysis of the financial structure of the hollow glass manufacturing industry, 2019-20, (£000 and number of companies)
Company Profiles
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- Ardagh Group/Trivium Packaging
- Recent activity
- Group strategy
- Financial performance
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- Figure 55: Financial analysis of Ardagh Glass, 2014-18, (£000)
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- Figure 56: Financial analysis of Ardagh Metal Beverage Trading UK, 2014-18, (£000)
- Figure 57: Financial analysis of Ardagh Metal Beverage Trading UK, 2014-18, (£000)
- DS Smith
- Company strategy
- Recent acquisitions
- DS Smith sells plastic division
- Financial performance and outlook
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- Figure 58: Financial analysis of DS Smith, 2016-20, (£ million)
- Huhtamaki (UK)
- Group strategy
- Recent activity
- Financial performance
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- Figure 59: Financial analysis of Huhtamaki (UK), 2014-18, (£000)
- Figure 60: Turnover analysis of Huhtamaki (UK), by geographic segment, 2016-18, (£000)
- O-I Glass
- O-I commits to largest investment in Europe in 20 years to meet growing demand for sustainable glass packaging
- Financial performance
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- Figure 61: Financial analysis of O-I Glass, 2014-18, (£000)
- VPK Packaging (formerly Rigid Containers)
- VPK Packaging merger with Encase
- Company strategy
- Financial performance
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- Figure 62: Financial analysis of VPK Packaging, 2015-19, (£000)
- RPC Group
- RPC Group acquired by Berry Global, creating one of the world’s largest plastic packaging companies
- Financial performance
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- Figure 63: Financial analysis of RPC Group, 2015-19, (£ million)
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- Figure 64: Financial analysis of RPC Group, by geographic segment, 2015-19, (£ million)
- Saica Pack UK
- Financial performance
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- Figure 65: Financial analysis of Saica Pack UK, 2015-19, (£000)
- Sealed Air
- Group strategy
- Recent activity
- Financial performance
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- Figure 66: Financial analysis of Sealed Air, 2014-18, (£000)
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Methodology
Further Sources and Contacts
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- Trade associations
- Trade magazines
- Trade events
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