MBD’s review of the UK food and drink packaging market reports an overall decline in demand of five per cent between 1999 and 2003. It says the decline is partly attributable to price competition in many sectors, increased concern on behalf of manufacturers about the environmental image of packaging and the legislative impact that encouraged a reduction in packaging volume. The continued impact of light weighting of packaging materials (causing a downturn in unit value) and greater economic uncertainty in many sectors of the market are also cited.
MBD expects the UK market to increase by an estimated two per cent, to an estimated level of £4488.2M during 2008. Despite the anticipated growth over the forecast period, market value is expected to decline year-on-year between 2004 and 2006 before increasing for the remainder of the forecast period.
Paper and board is expected to remain the strongest sector market, accounting for an estimated 43 per cent of total sales by 2008. Between 2004 and 2008, MBD expect sales in the sector to increase by four per cent to an estimated level of £1946.9M. The market is likely to face strong competition from plastics substitution, it concludes.
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