The UK plastic packaging market, valued at approximately $4.7 billion in 2024, is projected to experience slow growth over the next decade. Although the market is expected to grow at a compound annual growth rate (CAGR) of 1.0% in volume and 1.7% in value through 2035, it reflects a significant drop from previous years. This slow recovery comes after a decade-long decline in consumption since its peak in 2013, when the market reached 3.4 million tons.
An Overview of the Market Landscape
In 2024, the consumption of plastic packaging climbed to 937,000 tons, breaking a five-year slump characterized by declining demand. Despite this upturn, consumption levels remain significantly below the highs seen over a decade ago. The total revenue for the UK plastic packaging sector matched previous year levels at $4.7 billion. This figure includes both local production and imports, omitting logistics and retail costs that ultimately affect consumer prices.
Dominance of Plastic Sacks and Bags
Plastic sacks and bags represent the largest segment of the market, making up about 51% of total consumption. In 2024, the consumption volume of these items stood at approximately 599,000 tons, nearly double that of the second-largest category, plastic boxes, cases, crates, and similar packing articles, which accounted for 295,000 tons. The market for plastic sacks and bags saw an annual decline rate of 13.7% from 2013 to 2024.
In terms of revenue, plastic sacks and bags generated around $3.2 billion, with carboys, bottles, and similar articles accounting for another $1.7 billion, and plastic boxes, cases, crates, and similar products generating $1.2 billion.
Production Declines Worsen Import Reliance
The production of plastic packaging within the UK reached an estimated 668,000 tons in 2024, which is roughly equivalent to the previous year, but sharply down from the 3.1 million tons produced in 2013. This represents an alarming trend toward deindustrialization in this sector. The decline in domestic production has forced the UK to rely heavily on imports, creating a market dynamic where the UK remains a net importer of plastic packaging despite declining exports for three consecutive years.
In 2024, the value of domestic production was pegged around $3.8 billion, reflecting a substantial drop from the market peak of $18.7 billion in 2013.
Imports Surge from Key Suppliers
The growth in imports was notable, with the volume of plastic packaging imported into the UK increasing by 3.5% to reach 488,000 tons in 2024, following four years of decline. Notably, Turkey emerged as the fastest-growing supplier, while Germany and China also represented significant sources of imports, together constituting 43% of the UK’s total plastic packaging imports.
In monetary terms, plastic packaging imports decreased slightly to $1.8 billion in 2024. Germany was the largest supplier by value, amounting to $309 million, followed by China and Turkey at $267 million and $161 million, respectively.
Import Breakdown by Type
In 2024, plastic sacks and bags accounted for 67% of all imports, totaling 328,000 tons, which highlights their dominant position in the market. Other types, such as plastic boxes, cases, and crates, comprised only 105,000 tons.
While the value of plastic sacks and bags acquired maintained a steady growth trend, average annual rates for other imported categories like plastic boxes showed a negligible decline. The average import price for plastic packaging in 2024 was $3,647 per ton, which indicates a slight decrease compared to the previous year.
UK Exports Show Persistent Decline
From 2022 to 2024, the UK plastic packaging exports continued to decline, with a notable drop of 6.1% to 219,000 tons. This decline in shipments is reflective of the broader trend in which exports have not regained momentum after peak levels in 2021. In value terms, plastic packaging exports dropped to $901 million in 2024 from a peak of $1.1 billion.
The primary destinations for UK plastic packaging exports included Ireland (39,000 tons), Spain (24,000 tons), and Germany (20,000 tons), together accounting for a sizable share of total exports. In monetary terms, Ireland remained the top market for exports, with a contribution of $173 million.
Export Type Distribution
Among export types, plastic boxes, cases, crates, and similar packing articles represented the largest volume at 141,000 tons, making up approximately 64% of total exports. Carboys, bottles, and similar articles accounted for 42,000 tons, notably lagging behind the primary category.
Financial Dynamics of Plastic Packaging
The average export price for plastic packaging stood at $4,111 per ton in 2024, unchanged from 2023. This price variation across product types shows plastic sacks and bags selling at a premium of $8,016 per ton, significantly higher than the average for other products.
Price Trends and Market Behavior
The recent downturn in prices reflects broader economic pressures and shifts in demand and supply dynamics for plastic materials. Average prices have shown mixed trends since reaching a peak at $5,231 per ton in 2014. Observing the broader implications, the decline in production capacity in the UK could further increase reliance on imports and put upward pressures on prices.
Future Outlook for the UK Plastic Packaging Market
Despite the modest growth forecast for the UK plastic packaging market, industry trends indicate critical shifts in consumption patterns and an ongoing dependency on imported goods. With the market expected to grow slowly, peaking at 1 million tons valued at $5.7 billion by 2035, the industry faces hurdles tied to environmental concerns, regulatory changes, and evolving consumer preferences.
As the market continues to navigate recovery and adaptation in a challenging economic landscape, the potential for significant shifts remains, necessitating adaptive strategies from industry stakeholders. Efforts toward sustainability and innovation could play critical roles in defining the future of the UK plastic packaging market.
