| KN21053 |
| KEY NOTE PACKAGING (PLASTIC) : May 2003 |
 |
CLICK
 TO BUY |
This report covers: packaging, plastic, fresh food, meat , poultry, vegetables, frozen foods, soup, cheese, baked products, bread, biscuits, snack foods, coffee and tea, confectionery, dried foods, pharmaceuticals, cleaning products, household detergents, sacks, DIY, labelling, plastic packaging, linear low-density polyethylene,polyolefins, polyethylene, polypropylene, polymers, polyethylene terephthalate, polyvinylidene chloride, polystyrene, polycarbonate, ethylene vinyl alcohol copolymers, polymers in combination, polymers with other materials, other polymers, biopolymers, aliphatic polyketones, liquid crystal polymers, extrusion, cast film, calendering, blown film, flexible plastic film, nylon films, cellulose films, metallocene polymer films, PET films, polythene films, bottles and containers, closures, labels, boxes, crates, pails, barrels, drums, storage bins, bins, thinwall containers,
Companies covered include: Amcor Flexibles UK, Autobar Group, British Polythene Industries, DS Smith, Linpac Plastics, Low & Bonar, Macfarlane Group, MY Holdings, Rexam, RPC Group, SCA Packaging, Nampac,
| Executive Summary 1 |
| 1. Market Definition 9 |
| REport Coverage 9 |
| Types of Plastic Used for Packaging 9 |
| Polyolefins 9 |
| Polyethylene 10 |
| Polypropylene 11 |
| Polymers 11 |
| Table 1: Main Polymer Usage in UK Packaging by Volume (000 tonnes and percent), 1998-2002 12 |
| Polyethylene Terephthalate 12 |
| Polyvinyl Chloride 13 |
| Polyvinylidene Chloride 14 |
| Polystyrene 14 |
| Polycarbonate 14 |
| Ethylene Vinyl Alcohol Copolymers 14 |
| Polymers in Combination 15 |
| Polymers With Other Materials 15 |
| Other Polymers 15 |
| Biopolymers 15 |
| Aliphatic Polyketones 16 |
| Liquid Crystal Polymers 16 |
| Other Materials 17 |
| Polyethylene Naphthalate 17 |
| Conversion processes 17 |
| Extrusion 18 |
| Cast Film 18 |
| Calendering 18 |
| Blown Film 18 |
| MARKET SECTORS 19 |
| Flexible Plastic Film 19 |
| Bottles and Containers 19 |
| Closures 19 |
| Labels 20 |
| Boxes, Crates, Pails, Barrels, Drums and Storage Bins 20 |
| Market Trends 20 |
| Market Position 21 |
| The UK 21 |
| Overseas 22 |
| 2. Market Size 23 |
| THE TOTAL MARKET 23 |
| Table 2: The Apparent UK Plastic Packaging Market by Value at Constant 2000 Prices (£m and percent), 1998-2002 24 |
| Table 3: The Total UK Packaging Manufacturing Market by Material by Market Share by Value ( percent), 1998-2002 24 |
| Table 4: The Total UK Packaging Market by Material by Volume (million tonnes), 1998-2002 25 |
| By Market Sector 25 |
| Flexible Plastic Film 25 |
| Polyethylene Films 25 |
| Cast Polypropylene Films 25 |
| Nylon Films 26 |
| PET Films 26 |
| Polyvinyl Chloride Films 27 |
| Cellulose Films 27 |
| Metallocene Polymer Films 27 |
| Table 5: UK Consumption of Polyethylene in Film Applications (000 tonnes), 2002 28 |
| Bottles and Containers 29 |
| Table 6: UK Consumption of the Principal Plastics Used For Manufacturing Bottles and Containers by Volume (000 tonnes), 1998-2002 30 |
| Closures 30 |
| Table 7: UK Consumption of the Principal Plastics Used for Manufacturing Closures by Volume (000 tonnes), 1998-2002 31 |
| Labels 31 |
| Table 8: UK Consumption of Plastic for Labels by Volume (000 tonnes), 1998-2002 33 |
| Boxes, Crates, Pails, Barrels, Drums and Storage Bins 33 |
| Table 9: UK Consumption of Plastic Boxes, Crates, Pails, Barrels, Drums and Storage Bins by Volume (000 tonnes), 1998-2002 34 |
| OVERSEAS TRADE 34 |
| General Overview 34 |
| Exports 34 |
| Table 10: UK Exports of Plastic Packaging by Destination by Sector by Value (£000), Year Ending Third Quarter 2002 35 |
| Imports 37 |
| Table 11: UK Imports of Plastic Packaging by Origin by Sector by Value (£000), Year Ending Third Quarter 2002 37 |
| 3. Industry Background 40 |
| Recent History 40 |
| Table 12: The UK Plastic Industry by Application by Market Share by Value ( percent), 2002 40 |
| Industry Synopsis 41 |
| Table 13: UK Plastics Packaging Industry Profile (number, 000 tonnes, kg and £bn), 2002 41 |
| Number of Companies 43 |
| Table 14: Number of UK VAT-Based Enterprises Engaged in the Manufacture of All Types of Packaging by Turnover Sizeband (£000), 2002 44 |
| Table 15: Number of UK VAT-Based Enterprises Engaged in the Manufacture of Plastic Packing Goods by Turnover Sizeband (£000), 2002 45 |
| Employment 45 |
| Table 16: Number of UK VAT-Based Local Units Engaged in the Manufacture of Plastic by Employee Sizeband, 2002 46 |
| Regional Variations in the marketPLACE 46 |
| DISTRIBUTION 46 |
| HOW ROBUST IS THE MARKET? 47 |
| LEGISLATION 47 |
| Key Trade Associations 48 |
| UK Associations 48 |
| British Plastics Federation's Packaging Group 48 |
| Chemical Industries Association 49 |
| Packaging and Industrial Films Association 49 |
| The Packaging Federation 49 |
| European Associations 49 |
| Fédération de la Plasturgie 49 |
| Confederación Española de Empresarios de Plásticos 50 |
| Associação Portuguesa da Indústria de Plásticos 50 |
| Multisector Federation for the Technology Industry (Agoria) 50 |
| Gesamtverband Kunststoff — Verarbeitende Industrie e.V. 51 |
| Kunststoff Verband Schweiz 51 |
| Unione Nazionale Industrie Trasformatrici Materie Plastiche 51 |
| Fachverband der Chemischen Industrie Österreich 51 |
| The Association of the Hungarian Plastics Industry 52 |
| 4. Competitor Analysis 53 |
| THE MARKETPLACE 53 |
| Table 17: Leading UK Plastic Packaging Companies by Turnover (£000), 1998-2002 53 |
| MARKET LEADERS 54 |
| Amcor Flexibles UK Ltd 54 |
| Financial Results 55 |
| Autobar Group Ltd 55 |
| Financial Results 55 |
| British Polythene Industries PLC 55 |
| Financial Results 56 |
| DS Smith PLC 56 |
| Financial Results 56 |
| LINPAC Plastics Ltd 57 |
| Financial Results 57 |
| Low & Bonar PLC 57 |
| Financial Results 58 |
| Macfarlane Group PLC 58 |
| Financial Results 58 |
| MY Holdings PLC 58 |
| Financial Results 59 |
| Nampak PLC 59 |
| Financial Results 59 |
| Rexam PLC 59 |
| Financial Results 60 |
| RPC Group PLC 60 |
| Financial Results 61 |
| SCA Packaging Ltd 61 |
| Financial Results 61 |
| Outside Suppliers 61 |
| Polymer Manufacturers 62 |
| Cost Problems 63 |
| Machinery Manufacturers 63 |
| 5. Strengths, Weaknesses, Opportunities and Threats 64 |
| STRENGTHS 64 |
| WEAKNESSES 64 |
| OPPORTUNITIES 65 |
| THREATS 66 |
| 6. Buying Behaviour 67 |
| Customer Profile 67 |
| THE MAIN MARKETS 68 |
| Fresh Food 68 |
| Meat and Poultry 68 |
| Vegetables 69 |
| Frozen Foods 69 |
| Soup 69 |
| Cheese 70 |
| Baked Products 70 |
| Bread 70 |
| Cakes 70 |
| Biscuits 71 |
| Snack Foods 71 |
| Coffee and Tea 71 |
| Confectionery 71 |
| Dried Foods 71 |
| Pharmaceuticals 72 |
| Cleaning Products 72 |
| Household Detergents 72 |
| Sacks 73 |
| DIY 73 |
| Labelling 73 |
| 7. Current Issues 74 |
| COST OF FEEDSTOCK 74 |
| SUSTAINABILITY 75 |
| GROWTH OF ENVIRONMENTAL AWARENESS 75 |
| End-of-Life Plastics Packaging 76 |
| PRODUCT DEVELOPMENT IN PLASTIC 76 |
| 8. The Global Market 78 |
| Introduction 78 |
| The US 78 |
| Table 18: The Total US Packaging Material Market by Sector by Market Share by Value ( percent), 2000 79 |
| US Flexible Packaging Profile 79 |
| Table 19: US Converted Flexible Packaging Demand by Material and Market by Volume and Value (million lb and $m), 1995, 2000, 2005 and 2010 81 |
| Table 20: Forecast US percentage Growth in Packaging Materials by Value ( percent), 2001-2002, 2002-2003 and 2003-2005 82 |
| Table 21: Flexible Packaging Demand in the US and Europe by Value ($m), 2000, 2001, 2003 and 2005 82 |
| US Supplier Consolidation 82 |
| Europe 83 |
| Table 22: Total European Flexible Packaging Market by Country by Value ($m), 2000, 2001, 2003 and 2005 83 |
| Table 23: European Breakdown of Demand for Packaging Materials by Country by Market Share by Value ( percent), 2000 84 |
| Table 24: Estimated Packaging Expenditure in Europe (_m), 1994, 1995, 1996 and 2000 86 |
| Table 25: The Largest Economies in Western Europe by Estimated Packaging Expenditure (000, _m, e and percent), 1998, 1990-1997 and 2000 86 |
| Table 26: Estimated European Packaging Expenditure by Type of Material by Market Share ( percent), 1994, 1996 and 2000 88 |
| Table 27: Top Five Fastest-Growing European Food Packaging Markets ( percent), 2000-2005 88 |
| 9. Forecasts 89 |
| Introduction 89 |
| Forecasts 2003 to 2007 90 |
| Table 28: Apparent and Forecast UK Plastics Consumption (000 tonnes), 2000-2005 90 |
| Table 29: The Forecast Apparent UK Plastic Packaging Market by Value at Constant 2000 Prices (£m and percent), 2003-2007 90 |
| Future Trends 91 |
| The Environment 91 |
| 10. Company Profiles 93 |
| British Polythene Industries Plc 94 |
| Ds Smith Plc 96 |
| Linpac Plastics Ltd 98 |
| My Holdings Plc 100 |
| Rexam Plc 102 |
| Rpc Group Plc 104 |
| Sca Packaging Ltd 106 |
| 11. Further Sources 108 |
| Associations 108 |
| Bonnier Information Sources 109 |
| Government Publications 110 |
| Packaging is a large and important UK industry, which accounts for in excess of 1 percent of the country's gross domestic product (GDP). Plastic is the second most important packaging material in the UK, after paper and board. Plastic has the most dynamic growth of the packaging materials sectors in both the UK and Europe as a whole — estimated to be around 4 percent to 5 percent per year between 1998 and 2003. Flexible plastic forms around 30 percent of all plastic packaging sales by value in the UK. |
| The largest industry users of plastic packaging in the UK are those companies involved in food and drink. Food packaging — which is the largest single product area in the whole packaging industry, accounting for 54 percent of total UK production — will be the major growth market for plastics packaging in the future. The growth of the market is assisted by demographic developments in Europe, such as the steady increase in single- and two-person households and the growing number of elderly people. |
| Another new and growing special market is the packaging of pharmaceutical and medical products. Again, there is a strong and increasing demand for these products in industrialised countries, where considerable consumer expenditure is available for healthcare. |
| Growth in demand for plastic packaging, particularly the flexible packaging component, is strong in the UK and Western Europe, with historic value growth of around 1.5 percent per annum for polyethylene (PE). While tonnage growth for plastic packaging in the UK is rising, the increase in price of the raw materials used in the production of plastic packaging is resulting in a greater rise in the value of the UK plastic packaging industry's output. |
| Few materials can match the versatility and economy of modern PE and polypropylene (PP). These are by far the largest-selling plastics. Whether in bottles, plastic films or medical products, the two polymers (collectively known as polyolefins) have been used extensively since the 1960s. |
| The UK plastic packaging industry is concerned about the rise in cost of its raw materials and about the effects on its production capacity by recent environmental legislation, such as the Climate Change Levy introduced in 2000, and the 2002 proposed tax on the use of plastic bags (no decision had been made about this tax at the time this report was published [April 2003]). |
| The crisis in the Middle East (at the time this report was published [April 2003]) and the real possibility of a war between a Western-world coalition, led by the US, and Iraq has led to a sharp increase in the price of crude oil and plastic packaging feedstock. With the exception of regenerated cellulose film and cellulose acetate, with its subvariants, all plastics are ultimately based on petrochemical feedstock and, consequently, the price of raw materials for flexible packaging is highly dependent on the price of crude oil. |
| Around a third of all goods in the UK and Western Europe as a whole are now packaged in plastics, giving these materials the second-largest market share, after paper and board. In volume terms, 55 percent of this packaging is flexible, while the remainder is rigid. |
| The plastics industry's record on lightweighting is improving. As new technologies and designs are developed, less and less material is needed for the same effect and purpose. In 1970, the average plastic yoghurt pot weighed 11.8 grams (g), but in 1990, only 5g of plastic was needed to package the same amount. Since then, further lightweighting has been achieved. |
| In 2001, more than 290,000 tonnes of plastic was recycled in Western Europe. In the UK, the British Plastics Federation (BPF) pioneered the recovery and recycling infrastructure for plastics. The BPF has initiated and administered a Recycling Council, largely made up of plastic recyclers, and with the main aim of encouraging greater recovery and recycling of plastics. |
Text © 2003 Key Note
| Can't find what you
need? Try our "Research on Request" market report service and 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 |
Ariadne - working together with our customers
to enhance productivity and increase knowledge
© 2003
www.the-list.co.uk Ariadne
Last updated by Amanda Porteous July 2003
