| Packaging (Plastics) - Market Report | | | | well as keeping their use of these materials to a |
| | | | | minimum. Plastic is generally perceived as |
| In 2009, the UK market for plastic packaging was | | | | environmentally friendly in most instances, mainly on |
| worth an estimated £3.47bn, having been one of | | | | account of its lower weight than other packaging |
| the most dynamic sectors of the UK packaging | | | | materials, against which it also compares favourably in |
| industry during the previous decade. Between 2005 | | | | terms of cost. |
| and 2008, the apparent UK market value grew by | | | | |
| 15.6%, but growth tailed off dramatically in 2009, | | | | From a supply perspective, the UK market for |
| mainly as a result of the economic downturn. In | | | | plastic packaging has undergone some significant |
| terms of volume, more than 1.65 million tonnes of | | | | changes over the past few years. Rexam increased |
| plastic packaging are consumed in the UK every year, | | | | its share of the global market through its 2007 |
| equivalent to just over 27 kilograms (kg) per capita. ( | | | | acquisition of O-I Plastics, by which time Low & |
| ) | | | | Bonar and Autobar had largely left the market. |
| | | | | Amcor appears set to increase its share of the |
| If present trends continue, plastic is expected to | | | | market, should its proposed acquisition of Alcan's |
| become the packaging market's largest sector at | | | | food-packaging business go ahead. |
| some point within the next decade, overtaking paper | | | | |
| and board. Packaging is the leading application for the | | | | The UK market for plastic packaging is forecast to |
| UK plastics industry, currently accounting for 38% of | | | | decline in value by 3.5% in 2010, as a result of the |
| annual usage. Leading end-user industries for plastic | | | | recession and the continued weak state of the UK |
| packaging include food and drink, pharmaceuticals, and | | | | economy, with demand from most end-user |
| cosmetics and personal care. | | | | industries forecast to either remain static or contract. |
| | | | | The market is expected to face many challenges |
| Levels of innovation within the market remain high, | | | | over the coming years, including high energy costs, a |
| with many forms of plastic packaging becoming | | | | projected rise in prices for raw materials, and ever |
| increasingly versatile, sophisticated and lightweight. | | | | increasing pressures to reduce and recycle the |
| Environmental concerns are a key market driver, with | | | | materials used for packaging, for environmental |
| UK and EU legislation obligating suppliers to recover | | | | reasons. |
| and recycle increasing quantities of raw materials, as | | | | |