United Kingdom (UK) Corrugated Board Packaging - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2019 - 2029

The United Kingdom Corrugated Board Packaging Market size is estimated at USD 11.67 billion in 2024, and is expected to reach USD 14.14 billion by 2029, growing at a CAGR of 3.9% during the forecast period (2024-2029).

Corrugated packaging is found in different styles, shapes, and sizes, depending on the application. Due to its 100% recyclability and cost-effectiveness, it is widely used in the packaging industry.

Key Highlights

• Food packaging growth and increased purchases of lightweight corrugated boxes across industries are factors driving corrugated board packaging demand. Furthermore, innovative fluting design drives market demand by providing superior printing and cost savings through effective volume utilization.
• Rising demand for sustainable packaging solutions and the growing packaging needs of e-commerce platforms are expected to drive market growth. However, the concern about the durability of corrugated board, as it gets deformed if exposed to extreme pressure or when stacked, is limiting the market's growth.
• Manufacturers of corrugated board packaging work directly with e-commerce vendors to provide more agile and customizable solutions. According to the Office of National Statistics, internet sales in the United Kingdom increased to a record 37.8% of retail sales in January 2021, before declining in the following months. This can be viewed as a diminishing effect of market stabilization.
• Several key vendors in the country are indulging in product innovation to address the rising demand for corrugated packaging solutions. For instance, in August 2021, Mondi, a company headquartered in the United Kingdom, introduced its sustainable range of corrugated packaging solutions for the online grocery market across Central Europe.
• With the outbreak of COVID-19, the demand for corrugated board packaging in the region is witnessing significant growth due to the need for transport packaging of essential products, such as packaging for food and other consumer products, medical and pharmaceutical products, tissues, and hygiene products. Further, the Russia-Ukraine war has an impact on the overall packaging ecosystem.
• Moreover, several companies are launching new corrugated packaging products to meet the requirements arising from the COVID-19 crisis. For instance, DS Smith developed special emergency provision boxes to meet the increased demand for safer home delivery in the food retail sector.

UK Corrugated Board Packaging Market Trends

E-commerce Industry Expected to Stimulate Demand

• The e-commerce industry has emerged as a significant sector in recent years in the United Kingdom. Prominent e-commerce companies, such as Amazon, have been using corrugated board boxes for the principal packaging and relying on plastic packaging for individual items. According to GWP Group, e-commerce accounts for more than 20% of the total businesses in the United Kingdom, and 90% of e-commerce orders are shipped in corrugated boxes.
• According to the Office of National Statistics of the United Kingdom, the country's e-commerce revenue stands at GBP 129 billion (USD 177.47 billion) in 2021. On a sectoral basis, wholesale and manufacturing were the two leading industry sectors that generated the most e-commerce sales in the same year
• Another factor allowing corrugated boxes to overtake paperboard cartons is the introduction of e-commerce-ready packaging, which replaces lightweight and easy-to-open cartons with boxes that can withstand shipping rigors. Corrugated boxes used for e-commerce are more likely to be printed with high-quality graphics and customized to fit packaged contents to save on costs and increase the aesthetic impact during unboxing.
• Key vendors are introducing new products in response to the growing demand for corrugated board packaging solutions from the e-commerce industry. In September 2022, VPK Group launched its new European brand fit2size for Fanfold corrugated packaging solutions in response to its growth strategy to develop Fanfold corrugated packaging solutions across Europe. The company has launched a new product based on the latest Fanfold innovation to meet the increasing demand for e-commerce and logistics packaging and further strengthen its ambition to supply excellent sustainable packaging solutions.

Fresh Food and Produce Industry Expected to Gain Significant Traction

• The food industry is rapidly moving toward eco-friendly packaging by adopting corrugated board packaging solutions. The increasing concern for hygiene in food packaging has mandated several standards for the packaging industry and stimulated the adoption of eco-friendly packaging solutions in the country.
• The EU Regulation 1935/2004 on food contact materials and Regulation 2023/2006 on good manufacturing practice (GMP) are the laws applicable to corrugated packaging used in food applications in the EU. Hence, this poses several challenges in acquiring hygienic and sustainable packaging solutions for the food industry. In November 2021, the European Federation of Corrugated Board Manufacturers (FEFCO), which represents the corrugated packaging industry across Europe, including the United Kingdom, released its corrugated packaging recyclability guidelines aimed at optimizing recyclability via design parameters for paper and board packaging.
• Fruit packing necessitates extreme caution due to the product's fragile and perishable nature. Regarding rigid fruit transport packaging, corrugated fiberboard (CFB) is the most environmentally friendly solution. Corrugated boxes have recently gained a significant demand from fruit exporters owing to their improved adaptability for air, sea, and road transport.
• Several solution providers on the market are adopting recyclable packaging solutions. For instance, in January 2022, Oumph! One of the rapidly growing plant-based food producers from the UK announced plans to phase out plastic in its food product packaging by using recyclable cardboard packaging in all of its markets.

UK Corrugated Board Packaging Industry Overview

The United Kingdom corrugated board packaging market is fragmented owing to the presence of many players with new solutions in the country. Also, several global players are expanding their presence by expanding their operations in the United Kingdom. The market players are also forming strategic partnerships and collaborations to boost their market presence and gain maximum market traction. For instance,

• In October 2022, a 30% share in CorrBoard UK Ltd, a privately held corrugated sheet company in North Lincolnshire, United Kingdom, was purchased by VPK Packaging Group NV (VPK). CorrBoard UK would be fully supported by the Rigid Containers Ltd, a VPK company that converts 340 Million m² corrugated material annually in the United Kingdom and Ireland.
• In May 2022, Smurfit Kappa acquired cardboard box company Atlas Packaging an independent corrugated packaging provider that has a significant domestic presence having production capacity ranging from 500 to 1000 units.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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