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The U.K. packaging market size was valued at USD 25.95 billion in 2024 and is estimated to hit USD 26.28 billion in 2025. The market is projected to grow at a CAGR of 2.16% during the forecast period and reach USD 30.53 billion by 2032.
The rise of e-commerce influences the packaging market in the U.K., demanding for sustainability, and advancements in materials such as paper and paperboard. Major segments consist of rigid plastics and paper-based products, with flexible packaging and innovative solutions also demonstrating significant growth potential. The industry is under pressure to minimize plastic waste and enhance recycling efforts, while also meeting consumer preferences for convenience, luxury, and transparency.
Innovations in Smart and Digital Packaging Emerges as a Key Trend
Rise in QR codes, NFC tags, and smart labels enable consumers to obtain product details, verify authenticity, and interact with brands. This movement is especially significant in pharmaceuticals, beverages, and luxury items. Additionally, smart packaging enhances traceability, a growing concern in food safety and healthcare regulations. Brands and retailers in the U.K. are frequently incorporating QR-linked packaging to provide transparency and updates on sustainability. Hence, the innovations in smart and digital packaging boom as a key market trend.
Key takeaways· By material, plastic accounted for around 42.42% of the U.K. packaging market in 2024. · In product type segment, rigid packaging is projected to grow at a CAGR of 2.48% in the forecast period. · Based on packaging, secondary packaging accounted for around 49.49% of the U.K. packaging market in 2024. · In the end-use industry, food is projected to grow at a CAGR of 2.53% in the forecast period. |
Growth of E-commerce and Online Retail Drives Market Growth
The U.K. boasts one of the highest rates of e-commerce adoption in Europe. For safe delivery of products, online retail necessitates packaging that is both durable and lightweight, offering adequate protection. There is an increased need for corrugated boxes, mailers, and protective materials such as bubble wrap and air cushions, driven by the rise in home deliveries. Additionally, consumers are seeking sustainable packaging for their e-commerce orders, prompting advancements in recyclable corrugated packaging and paper-based protective alternatives.
High Regulatory and Compliance Burden Impedes Market Growth
The government of the U.K. has implemented stringent packaging regulations, including the Plastic Packaging Tax (April 2022), Extended Producer Responsibility (EPR) initiatives, and bans on single-use plastics. Although these measures promote sustainability, they also raise expenses for packaging manufacturers, particularly small and medium-sized enterprises that find it challenging to adapt swiftly. Adhering to these regulations necessitates investment in alternative materials, rethinking supply chains, and establishing recycling programs, which can place a financial burden on businesses. The high regulatory and compliance burden collectively hampers the U.K. packaging market growth.
Based on material, the market is divided into plastic, paper & paperboard, metal, glass, wood, and others.
Plastic is the dominating material of the U.K. packaging market. In the U.K., plastic packaging provides advantages such as safeguarding products, prolonging shelf life, lightweight transportation (which lowers energy usage and emissions), and being cost-effective than alternative materials. It also offers versatility in design, facilitates easy branding, and is frequently recyclable, helping to minimize food and resource waste. Nevertheless, the U.K.'s Plastic Packaging Tax promotes the utilization of recycled materials to foster sustainability.
Based on product type, the market is segmented into rigid packaging and flexible packaging.
Rigid packaging is the dominating product type and will experience significant growth as there is a significant movement toward eco-friendly and sustainable packaging materials, spurred by consumer preferences and stringent government regulations such as Extended Producer Responsibility (EPR). Innovations such as recycled plastics, bioplastics, and plant-derived materials are becoming increasingly prominent. Other notable trends include the rise of e-commerce, which has led to a demand for robust packaging for online shipping, as well as the advancement of smart packaging that incorporates technology. Furthermore, there is an emphasis on premium and luxury packaging aimed at elevating brand perception, particularly within the cosmetics and upscale beverage industries.
Based on packaging type, the market is trifurcated into primary packaging, secondary packaging, and tertiary packaging.
Secondary packaging type leads the segment and holds a prominent U.K. packaging market share as it is primarily influenced by sustainability initiatives, including government measures such as the Plastic Packaging Tax and Extended Producer Responsibility (EPR). The growth of e-commerce has increased the demand for packaging that is strong yet minimalist, alongside the necessity for cost effective solutions in manufacturing and logistics. Additionally, notable trends include the emergence of innovative, high-end designs for specific products, particularly in the pharmaceutical and luxury sectors, as well as a growing emphasis on digitalization and the Internet of Things (IoT) to enhance efficiency and customer engagement.
Based on end-use industry, the market is segmented into food, beverages, cosmetics & personal care, chemicals & lubricants, healthcare, consumer products, building & construction, electronics, automotive, and others.
Food is the leading end-use industry with notable trends, such as, increasing preference for plant-based diets, a focus on sustainable and ethical sourcing, the emergence of functional beverages that provide health advantages, a boost in online sales, and a rising interest in convenient items such as meal kits. Shoppers are also showcasing a keen interest in organic foods, products sourced locally, and drinks that promote wellness objectives, including gut health and stress alleviation.
DS Smith, Mondi, and AptarGroup Inc. are the prominent players in the U.K. packaging market.
Other companies with a considerable presence in the market include Sealed Air, and Sonoco Products Company, other small & medium-sized players. These companies are making strategic moves, such as conducting market research and development activities for the development of several packaging products, which are expected to increase their packaging market share.
The U.K. packaging market report offers a detailed analysis of the market. It focuses on market dynamics and key industry developments, such as mergers and acquisitions. Besides this, the report also offers insights into the latest industry trends and the impact of various factors on the demand for packaging.
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ATTRIBUTE |
DETAILS |
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Study Period |
2019-2032 |
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Base Year |
2024 |
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Estimated Year |
2025 |
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Forecast Period |
2025-2032 |
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Historical Period |
2019-2023 |
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Growth Rate |
CAGR of 2.16% from 2025 to 2032 |
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Unit |
Value (USD Billion) |
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Segmentation |
By Material · Plastic · Paper & Paperboard · Metal · Glass · Wood · Others |
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By Product Type · Rigid Packaging o Boxes & Containers o Bottles & Jars o Pails & Cans o Trays & Pallets o Caps & Closures o Tubes o Others · Flexible Packaging o Bags & Sacks o Films & Wraps o Labels o Sachets & Pouches o Tapes o Others |
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By Packaging Type · Primary Packaging · Secondary Packaging · Tertiary Packaging |
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By End-use Industry · Food o Dairy Products o Meat, Poultry, and Seafood o Agricultural Produce o Others · Beverages o Alcoholic Beverages o Non-alcoholic Beverages · Cosmetics & Personal Care o Skin Care o Hair Care o Others · Chemicals & Lubricants · Healthcare o Pharmaceuticals o Medical Devices o Others · Consumer Products · Building & Construction · Electronics · Automotive · Others |
Fortune Business Insights says that the U.K. market was worth USD 25.95 billion in 2024.
The market is expected to exhibit a CAGR of 2.16% during the forecast period of 2025-2032.
By material, the plastic segment is set to lead the market.
DS Smith, Mondi, and AptarGroup Inc. are the leading players in the market.
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