The UK Packaging Market After Brexit

In 2025, the United Kingdom’s packaging industry stands at a crossroads. Between post-Brexit bureaucracy, tighter environmental regulations and rising cost pressure, a market has emerged that is both resilient and highly adaptive. While traditional materials such as plastics maintain their dominant role, paper, aluminium and bio-based alternatives are increasingly coming to the fore.

According to recent analyses by Mordor Intelligence, the UK packaging market reached a value of USD 60.94 billion in 2025 and is expected to grow to USD 68.18 billion by 2030 – an average annual growth rate of 2.27 %. Growth is driven by ongoing e-commerce expansion, advances in recycling technologies and structural shifts along the value chain.

The geographical imbalance within the country remains pronounced: around 84 % of packaging demand is concentrated in England, where both the population and industrial infrastructure dominate.

Plastics Remain the Leading Material

With a market share of 48.5 %, plastics continued to be the most important packaging material in 2024. PET, PE and PP still dominate the food, beverage, cosmetics and household product sectors.

Nevertheless, signs of structural change are increasing. A key driver of this development is the Plastic Packaging Tax (PPT), introduced in 2024, which imposes a levy of £200 per tonne on plastic packaging containing less than 30 % recycled content. This boosted demand for secondary raw materials by around 35 %. At the same time, Extended Producer Responsibility (EPR) was introduced, holding producers more accountable for the collection and recycling of their packaging.

As a result, the importance of paper and bio-based materials is growing rapidly, with an expected annual growth rate of 4.9 % through 2030.

Flexibility Is Key – Physically and Economically

Flexible packaging already accounted for 54.9 % of the UK packaging market in 2024 and is projected to grow at an average annual rate of 3.75 % by 2030.

Stand-up pouches have become established in segments such as pet food, baby food and household cleaners. They combine reclosability, appealing design and functionality, while digital printing enables short runs and seasonal editions.

Flexible solutions are also gaining importance in e-commerce: in 2024, online trade accounted for 31.3 % of national revenue, significantly increasing demand for lightweight, durable and space-saving packaging.

 

Metal, Glass and Biopolymers: Sustainability Meets Brand Image

Alongside plastics and paper, metals and glass are experiencing a renaissance – particularly in the premium and beverage segments. Aluminium cans are growing by 4.1 % annually, driven by craft breweries and beverage producers that value their low weight, high recyclability and fast cooling. Glass packaging is expanding by 3.2 % per year, supported by brand manufacturers increasingly switching to lighter bottles and electric furnaces.

At the same time, biopolymers and compostable films are gaining momentum. Their use remains limited to niche applications, but wherever compostability is a key purchasing argument – for instance in the organic or fresh-produce segments – higher margins can be achieved.

Energy Prices, Inflation and Efficiency Pressure

The price trends of the past two years have put the market under visible strain. Polyethylene rose by 22 % in 2024, recycled paper by 18 %, while energy prices remained volatile. Companies such as Mondi UK reported margin declines of more than three percentage points.

Many manufacturers responded by reducing production during expensive power-price peaks, increasing safety stocks and focusing more on energy-efficient extrusion technologies. Nonetheless, the competitiveness of UK converters remains under pressure – particularly compared to continental European producers with more stable energy-cost structures.

 

Progress in Recycling and Circular Thinking

Despite these challenges, the UK has made significant progress in recycling. The overall packaging recycling rate reached 65 % in 2023, with plastic packaging at 52.5 % – both record levels. The regulatory instruments PPT and EPR have therefore proven effective not only administratively but also as true market drivers.

At the same time, numerous initiatives are supporting the expansion of domestic recycling capacity to reduce import dependence. In 2023, 1.32 million tonnes of plastic packaging were imported, while 1.64 million tonnes were produced domestically – a clear sign of reindustrialisation within the value chain.

 

Author: Alexander Stark, Editor FACHPACK360°