Worldwide Business Information and Market Reports
www.the-list.co.uk and www.worldmarketresearch.com
Telephone +44 1404 891528 Fax +44 1404 891717 Email reportfinder @ tiscali.co.uk
| KN21032 |
| KEY NOTE PACKAGING (PAPER AND BOARD) : NOVEMBER 2002 |
| Overview |
WANT TO BUY THIS? The easiest way is just to ring ReportFinder on +44 (0) 1404 891528 from 0900 to 1930 UK time and ask for Sales.Just one of a HUGE range of titles from publishers such as Aktrin, AMA Research, eMarketer, Key Note, MAPS, MBD, MSI and The Prospect Shop that you can BUY RIGHT NOW online from us. To buy or to browse further, use either of the Back To buttons below to activate our catalogue. If you would like to buy this title, you will find it in alphabetic order in the Index using the first Back To button. If you need further information, please contact us using the details at the top of this page. Please tell your colleagues if you find our site useful!
| Alternatively- try our ad-hoc market report service - define your own report research! |
| Fixed prices - £150, £450 and £1,250 - and fixed delivery of 4, 5 and 14 days |
| Click here for full details |
This report covers: packaging (paper & board), packaging, paper, board for, raw materials, flat cardboard, corrugated board, liners, fluting papers, corrugated board combinations, carton board, general packaging boards, corrugated boxes, linerboard, folding box board,
Companies covered include: Amcor Europe, DS Smith, Euro Packaging, Field Group, Kappa Holdings, Mondi Packaging, SCA Packaging, Boxmore Healthcare Packaging, BPB UK, Kappa Corrugated,

| Executive Summary | |
| 1. Market Definition | |
| INTRODUCTION | 2 |
| The Materials | 2 |
| Packaging Paper | 3 |
| Board for Packaging | 3 |
| Raw Materials | 3 |
| Market Sectors | 4 |
| Paper Packaging | 5 |
| Flat Cardboard | 5 |
| Paper for Cardboard | 5 |
| Corrugated Board | 5 |
| Liners | 6 |
| Fluting Papers | 6 |
| Corrugated Board Combinations | 6 |
| Carton Board | 7 |
| General Packaging Boards | 7 |
| Other Packaging Papers | 7 |
| MARKET POSITION | 8 |
| The UK | 8 |
| Table 1: The UK Packaging | |
| Market by Sector by Volume | |
| (million tonnes and percent), 2001 | 8 |
| Table 2: UK Consumption of Paper and Board by Sector by Volume | |
| (million tonnes and percent), 2001 | 9 |
| Key UK Industry Drivers | 9 |
| Table 3: Key Areas Driving the Packaging Industry, 2002 | 10 |
| Overseas | 10 |
| Table 4: The Global Packaging Industry by Value and Per Capita Expenditure | |
| ($m, percent and $), 2000 | 11 |
| UK Corrugated Board | 11 |
| Table 5: UK Share of Global Corrugated Board Production | |
| by Volume | |
| ( percent), 1996-2001 | 12 |
| Table 6: European Shares of Corrugated Board Production | |
| by Country ( percent), 2001 | 12 |
| MARKET TRENDS | 13 |
| Economic Influences | 13 |
| Consolidation and Rationalisation | 13 |
| Future Drivers | 14 |
| Regulatory Impact | 14 |
| 2. Market Size | |
| INTRODUCTION | 15 |
| THE TOTAL MARKET | 15 |
| Table 7: Trends in the UK Consumption of Paper and Board Packaging by Volume | |
| (million tonnes), 1991-2001 | 15 |
| Table 8: UK Consumption of | |
| Paper and Board Packaging | |
| by Sector by Volume | |
| (million tonnes), 1997-2001 | 16 |
| BY MARKET SECTOR | 17 |
| Corrugated Cases | 17 |
| Table 9: End-Use Markets for Corrugated Products by Volume | |
| ( percent), 2001 | 17 |
| Table 10: UK Shipments of | |
| Corrugated Board by Volume | |
| (million square metres), | |
| 1997-2001 | 18 |
| Plastic Crate Competition | 18 |
| Cartons | 18 |
| Table 11: Carton Usage in the UK | |
| by Type of Product ( percent), 2001 | 19 |
| Table 12: Approximate Breakdown | |
| of Food Carton Usage in Europe | |
| by Type | |
| of Food ( percent), 2001 | 20 |
| Table 13: Approximate Breakdown of Non-Food Carton Usage in Europe by Type | |
| of Product ( percent), 2001 | 20 |
| Multiwall Paper Sacks | 21 |
| Packaging Papers | 21 |
| Table 14: Usage of Fibrous Raw Material ( percent), 2001 | 21 |
| OVERSEAS TRADE | 22 |
| Imports | 23 |
| Table 15: UK Imports of Paper and Board by Volume (million tonnes), 1997-2001 | 23 |
| Exports | 23 |
| Table 16: UK Exports of Paper and Board by Volume (million tonnes), 1997-2001 | 23 |
| 3. Industry Background | |
| Packaging | 24 |
| Paper and Board | 24 |
| END-USE SECTORS | 25 |
| Food | 25 |
| Drink | 25 |
| Tobacco | 26 |
| RECENT HISTORY | 26 |
| Corrugated Packaging | 26 |
| NUMBER OF COMPANIES | 28 |
| Table 17: Number of VAT-Based Enterprises Manufacturing Corrugated Paper, | |
| Paperboard, Sacks, Bags, Cartons, Boxes, Cases and Other Containers by Turnover | |
| (£000), 2002 | 28 |
| EMPLOYMENT | 29 |
| Table 18: Number of Local Units Manufacturing Corrugated Paper, Paperboard, | |
| Sacks, Bags, Cartons, Boxes, | |
| Cases and Other Containers | |
| by Employee Sizeband, 2002 | 29 |
| REGIONAL VARIATIONS IN | |
| THE MARKETPLACE | 29 |
| DISTRIBUTION | 30 |
| Partnership in the Packaging | |
| Supply Chain | 30 |
| Efficient Consumer Response | 31 |
| Collaborative Planning, | |
| Forecasting and Replenishment | 31 |
| Cost Reduction | 32 |
| Damage and Loss Prevention | 32 |
| Reducing Time to Market | 32 |
| Strategic Sourcing | 33 |
| Gillette | 33 |
| How Robust Is the Market? | 34 |
| LEGISLATION | 34 |
| Revision of the Packaging and Packaging Waste Directive | 34 |
| Integrated Product Policy | 35 |
| Food Contact | 35 |
| Waste Definition | 35 |
| Recovery and Recycling Target | 36 |
| Equal Treatment of Re-use and Recycling | 36 |
| Definition of Packaging | 36 |
| Prevention | 37 |
| KEY TRADE ASSOCIATIONS | 37 |
| British Carton Association | 37 |
| Corrugated Packaging | |
| Association | 37 |
| Institute of Packaging | 37 |
| The Packaging Federation | 37 |
| Paper Federation of Great Britain | 38 |
| International Associations | 38 |
| Alliance for Beverage Cartons | |
| and the Environment | 38 |
| Confederation of European Paper Industries | 38 |
| European Federation of | |
| Corrugated Board Manufacturers | 38 |
| EUROSAC | 39 |
| Groupement Embalpack | 39 |
| International Confederation | |
| of Paper and Board Converters | |
| in Europe | 39 |
| Pro Carton | 39 |
| 4. Competitor Analysis | |
| THE MARKETPLACE | 40 |
| MARKET LEADERS | 40 |
| Amcor Europe | 40 |
| DS Smith (UK) Ltd | 41 |
| Euro Packaging PLC | 42 |
| Field Group PLC | 43 |
| Kappa Holdings UK Ltd | 44 |
| Mondi Packaging (UK) Ltd | 45 |
| SCA Packaging Ltd | 46 |
| OTHER COMPANIES | 47 |
| Boxmore Healthcare Packaging | 47 |
| BPB UK Ltd | 47 |
| OUTSIDE SUPPLIERS TO THE INDUSTRY | 48 |
| Raw Materials | 48 |
| Conversion Machinery | 48 |
| 5. Strengths, Weaknesses, Opportunities and Threats | |
| STRENGTHS | 51 |
| WEAKNESSES | 51 |
| OPPORTUNITIES | 52 |
| THREATS | 52 |
| 6. Buying Behaviour | |
| INTRODUCTION | 53 |
| CORRUGATED CASE MATERIALS | 53 |
| CARTONS | 54 |
| PACKAGING PAPERS | 54 |
| MULTIWALL PAPER SACKS | 54 |
| 7. Current Issues | |
| ENERGY CONSUMPTION | 55 |
| Paper and Board | 55 |
| Table 19: Typical Energy | |
| Consumption by the UK Paper | |
| and Board Industry (giga joules | |
| per year) | 55 |
| Pulp and Paper | 56 |
| INTERNET/ELECTRONIC COMMUNICATION | 57 |
| CORPORATE ISSUES | 58 |
| CONSOLIDATION | 58 |
| THE IMPACT OF THE EURO | 58 |
| PRICES | 59 |
| PACKAGING WASTE | 59 |
| 8. The Global Market | |
| EUROPE | 61 |
| Production Remains High | 61 |
| Table 20: Production and Consumption of Paper Within | |
| the Confederation of European | |
| Paper Industries by Volume | |
| (million tonnes), 2001 | 61 |
| European Investment | 62 |
| Stora Enso | 62 |
| Metso Paper | 63 |
| THE US/Canada | 63 |
| Manufacturers Seek Deliverance | |
| by 2003 | 63 |
| Capacity | 64 |
| Paper and Paperboard | 64 |
| Folding Box Board | 64 |
| Linerboard | 64 |
| Table 21: Shares of the Leading | |
| US Linerboard Companies by | |
| Capacity ( percent), 2000 | 65 |
| Corrugated Boxes | 65 |
| CHINA | 65 |
| A Bright Future | 65 |
| Table 22: Actual and Forecast | |
| Paper and Paperboard Trade | |
| and Consumption in China | |
| (000 tonnes), 1990-2015 | 66 |
| 9. Forecasts | |
| INTRODUCTION | 68 |
| FORECASTS 2002 TO 2006 | 68 |
| Table 23: Forecast UK | |
| Consumption of Paper and Board Packaging by Sector by Volume (million tonnes), 2002-2006 | 69 |
| FUTURE TRENDS | 69 |
| Foreign Influence | 69 |
| Pricing | 70 |
| Impact of Waste Packaging Regulations | 0 |
| 10. Company Profiles | |
| Amcor Europe | 72 |
| DS Smith PLC | 74 |
| Euro Packaging PLC | 76 |
| Field Group PLC | 78 |
| Kappa Corrugated UK Ltd | 80 |
| Mondi Packaging (UK) Ltd | 82 |
| 11. Further Sources | |
| Key Note Research | |
| The Key Note Range of Reports |
Executive Summary Towards the end of 2002, the UK paper and board packaging industry was in recession, with the real possibility that it would remain there until mid-2003. In 2001, consumption of paper and board packaging fell by around 2.3 percent, to 4.3 million tonnes.
Although paper and board packaging remains one of the largest packaging sectors, and a significant employer, it is being adversely affected by the relative strength of the pound compared with the euro. The high-cost UK manufacturing industry has also been hit by waste packaging regulations, such as the EU Packaging and Packaging Waste Directive and the UK Climate Change Levy (CCL). This has led to a wave of consolidation in the industry and, as a result, a number of foreign players now own UK manufacturing capacity.
Nevertheless, there is a positive side to the downsizing of the UK industry. Paper and board remains the favourite packaging material and is valued as a popular medium in the fast-growing print-for-packaging sector. Despite competition from plastic, corrugated packaging is beginning to play to its strengths for dual-purpose transit packs, i.e. as a means of protecting goods in transit and for open display at the point of sale.
Supply-chain efficiencies are being developed, which is helping to cut the industry's costs, and a recycling infrastructure is well established. The industry has also shown - through the PapiNet and other initiatives - that it is willing to embrace the Internet and e-logistics.
That said, the UK paper and board packaging market will continue to be at the mercy of increased raw material costs and, as long as the industry's manufacturers are competitively disadvantaged in terms of the sterling/euro exchange rate, more producers will fall by the wayside in the period to 2006. However, it is possible that by 2006, a UK referendum on joining the euro currency would have propelled the UK into the 'eurozone', thereby negating some of the exchange rate advantages currently enjoyed by continental European producers. It is also expected that UK paper and board packaging manufacturers will continue to play an important role in satisfying demand in the UK - the third-largest paper and board manufacturing market in Europe.
A large amount of UK paper and board manufacturing capacity has now been brought under the control of foreign companies and these are likely to continue to play a role in satisfying UK domestic demand.
UK demand for paper and board packaging is forecast to increase between 2002 and 2006. Consumption is expected to rise only marginally in 2002, with growth picking up in 2003 and remaining modest thereafter.
Text © 2002Key Note
Ariadne - working together with our customers to enhance productivity and increase knowledge
© 2002 www.the-list.co.uk Ariadne
Last updated by Amanda Porteous December 2002