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Modest growth for paper packaging amidst market threats

Modest growth for paper packaging amidst market threats

Modest growth for paper packaging amidst market threats

The paper and board packaging market value increased by 1.8% in 2013, and is forecast to grow modestly – by 6.3% over the next five years.

This is according to a new report from business intelligence provider Key Note, which said paper and board packaging remains the most widely used packaging material in the UK.

The Packaging (Paper & Board) 2014 report warned, however, that although the market has grown year-on-year basis since 2009, the long-term problem concerning consumer perceptions, combined with developing current issues, are threatening future market performance.

The report said that consumer demands and perceptions are an important influence in this market given the large number of end-use sectors within which paper and board packaging is required.

“This has positive and negative implications with regard to ongoing market trends. On one hand, for instance, the growing demand for convenient foodstuffs is fuelling the use of paper and board packaging in products such as ready meals, thereby contributing to increasingly valuable manufacturers’ sales in 2013.

“Yet despite this, consumer perceptions continue to be predominantly negative towards packaging, based primarily on the opinion that packaging of all varieties is harmful to the environment. This is, in fact, a misconception, as proven by the industry’s continued ability to exceed the recovery and recycling targets set by the European Commission, but until UK consumers are convinced of this, potential avenues for further growth will continue to be restricted.”

Future growth potential could also be affected by a variety of issues such as the ongoing development of plastic packaging. One example is Tesco’s decision to replace the traditional cartonboard packaging used for own-label, free-range eggs with recyclable plastic packaging.

Other current threats include political calls to legislate against branded cigarette packaging, as well as high overheads for paper and board packaging manufacturers.

“Despite these sizeable market threats, however, it is important to note that paper and board packaging remains the most widely used packaging material in the UK marketplace. This will not change in the near future, regardless of the fact that dramatic market growth now seems unlikely in the coming five years,” said the report.


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