According to MBD’s new ‘UK Plastic Packaging Market Development Report’, the market is expected to increase by one per cent in 2006, to a five year peak of £3353.3M at MSP. Demand for plastics packaging increased in three of the four years between 2002 and 2005, culminating in overall growth of 14 per cent, to a level of £3309.5M. Particularly strong growth of 6 per cent was recorded in 2005.
The report attributes the recent development of the UK market mainly to advances in the material properties of plastics, which have resulted in the substitution of other materials and products for more effective and efficient plastics alternatives. “In volume terms, plastics has continued to benefit from the design adaptability affording the opportunity for material substitution in favour of plastics. However, the cost pressures of meeting environmental legislation have slightly reduced the scale of the cost benefits enjoyed by plastics packaging.”
The UK market for plastics packaging is expected to increase year-on-year throughout the forecast period, continuing the trend for growth recorded during recent years. Between 2006 and 2011, MBD believes demand will increase by four per cent in real terms, to an estimated level of £3490.7M (at 2006 prices). “Price pressure in the sector, exacerbated by supply over-capacity, is forecast to continue to pressure the market value, although this is likely to be partly offset by the strong oil price increasing raw material costs in the short term.”
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