Executive Summary
In 1997, sales of packaging to the food and drink industry were estimated to amount to £5.82bn. This represents 53.4% of the estimated £10.9bn total value of the packaging industry. In 1993, estimated sales to the food and drink industry amounted to £4.72bn, giving an increase by value of around 23.3% over the 5-year period between 1993 and 1997.
Packaging, made from paper and board, plastic, metal, glass or wood, is a vital commodity for the protection and presentation of food and drink products. Paper and board packaging accounts for the largest segment in sales to the food and drink industry at £2.7bn, followed by plastic and metal, each with sales of £1.3bn, glass with £500m and wood with £20m.
The industry is having to contend with many changes in its operating environment. The most important are the new Producer Responsibility Regulations and European Packaging Ordinances, which came into effect in 1998. Such regulations have set obligatory standards for the reduction, collection and recycling of packaging materials and the apportioning of costs between manufacturers, wholesalers, retailers and their customers. These will cut demand for bulkier, heavyweight packaging in favour of lightweight packaging and remove much secondary packaging. As a result, it is likely that the volume of packaging will fall, but manufacturers hope that its value can be retained and increased by pack design innovation and greater customisation.
The food and drink industry is at the forefront of packaging design, and manufacturers and designers are very dependent on the attitudes of the major national grocery supermarket chains, which account for the bulk of their sales. These chains are very conscious of their environmental image and it is inevitable that fundamental changes to the packaging will occur.
Key Note anticipates that estimated UK sales of £6.27bn in 1998 will slowly increase to £6.94bn in the year 2002, giving a total increase of 10.8%.
Third Edition 1998
Edited by Liz Greasby
ISBN 1-85765-860-4
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