A mixed bag: Green concerns cause revenue to fall but increase investment in bio-plastics

The Plastic Packing Goods Manufacturing industry produces a range of packaging used by numerous industries to market and transport various products. Industry revenue has been relatively volatile over the past five years, due to competitive pressures and fluctuations in input prices. Government initiatives, including the imposed levies on plastic carrier bags, have also affected sales and exacerbated volatile trading conditions over the past five years. Over the five years through 2019-20, industry revenue is forecast to contract at a compound annual rate of 0.7% to reach £4.2 billion.In recent year, public concern surrounding environmental issues has risen, fuelling a growing resistance to using plastic...read more.

Industry Statistics & Market Size
Revenue
£4.2bn
Annual Growth 15-20
-0.7%
Forecast Growth 20-25
Profit
Employment
22,614
Businesses
489
Market Share of Companies

Industry Threats & Opportunities

  • Growing public concern for the environment has limited demand for plastic packaging
  • Levies on the use ofsingle-use carrier bagshave limited demand for plastic bags and sacks
  • A new tax should act as an incentive for firms to develop more products with high recycled content
  • Industry Report - Industry Products Chapter

    The industry is involved in manufacturing both rigid and flexible plastic packaging. These are made using three different conversion processes: injection moulding, blow moulding and thermoforming. Plastic packing products are mainly manufactured from commodity thermoplastics like polypropylene, polyethylene, polystyrene and polyvinyl chloride. These are commonly abbreviated in the industry to PP, PE, PS and PVC respectively.Bottles and flasksThe versatility of plastic bottles and containers has made them the go-to way to package and distribute beverages, food and other goods. Plastic can be moulded into various shapes and sizes and its physical attributes can easily be altered to achieve ideal levels of strength and flexibility. Dem...purchase to read more.

    Additional Insights for the Plastic Packing Goods Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Plastic Packing Goods Manufacturing Industry are

  • Economies of scale
  • Supply contracts in place for key inputs
  • Provision of a related range of goods/services ("one stop shop")
  • IBISWorld analysts also discuss how external factors such as Business capital expenditure and Real private consumption expenditure in the Plastic Packing Goods Manufacturing industry impact industry performance..

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    What's in this report

    What is the Plastic Packing Goods Manufacturing Industry?

    Firms in this industry manufacture rigid and flexible plastic articles to pack goods in. These products include bags, cases, sacks, boxes and bottles.

    Industry Products
  • Sacks and bags
  • Boxes, cases and crates
  • Bottles and flasks
  • Bottle caps and capsules
  • Other plastic packaging
  • Industry Activities
  • Manufacturing rigid plastic packaging
  • Manufacturing flexible plastic packaging or film
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Business capital expenditure
  • Real private consumption expenditure
  • Industrial production index
  • Public concern over environmental issues
  • World price of crude oil

  • Current Performance
  • Downstream demand
  • Plastic bag tax
  • Regulation and recycling
  • Competitive pressure
  • Chart: Revenue Growth

  • Industry Outlook
  • Environmental concerns
  • Plastic prospects
  • Inputs and innovation
  • Table: Plastic Packing Goods Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Plastic Packing Goods Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Juice Production
  • Oil & Fat Production
  • Soft Drink Production
  • Perfume & Cosmetics Manufacturing

  • Key Selling Industries
  • Primary Form Plastics Manufacturing

  • Products & Services
  • Bottles and flasks
  • Boxes, cases and crates
  • Sacks and bags
  • Other plastic packaging
  • Bottle caps and capsules
  • Chart: Plastic Packing Goods Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Food manufacturers
  • Beverage manufacturers
  • Toiletry and cosmetics manufacturers
  • Household and cleaning product manufacturers
  • Pharmaceutical and health-care product manufacturers
  • Other manufacturers
  • Automotive product manufacturers
  • Chart: Major Market Segmentation for the Plastic Packing Goods Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesPurchase are by far the biggest cost for the industry, estimated to account for 58.7% of total revenue in 2019-20. Approximately 99% of all plastics are derived from oil and natural gas and, currently, most of them are manufactured using naphtha feedstock, which is itself a product of the oil-refining process. As a result, purchase costs are heavily dependent on the price of crude oil. Declining crude oil prices at the start of the period, resulting from the shale gas boom in the United States, fed through to cheaper input prices for manufacturers. However, global crude oil prices have slowly crept back up in recent years, fuelled by concerns that renewed US sanctions against Iran could limit supply. The weak value of the pound since the EU referendum has also inflated the price of the dollar-denominated commodity for domestic manufacturers. WagesDepreciationUtilitiesOther
  • Chart: Cost Structure Benchmarking – Sector vs Plastic Packing Goods Manufacturing

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Plastic Packing Goods Manufacturing Industry

  • Industry Globalization
    RPC Group plc,
  • Table: RPC Group plc - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Plastic Packing Goods Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Plastic Packing Goods Manufacturing Industry
    Includes:
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Exports (2011-2025)
  • Imports (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Marketing (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Bio-Plastic
  • A type of biodegradable plastic derived from biological substances rather than petroleum.
  • Blow Moulding
  • A manufacturing process that involves sending air through a plastic tube until it takes the shape of a mould.
  • Flexible Barrier Packaging
  • A form of flexible packaging that prevents outside contamination.
  • Polyvinyl Chloride (Pvc)
  • A thermoplastic polymer used to make flexible plastic packaging.
  • Resin
  • A non-volatile solid or semi-solid organic amorphous mixture of carboxylic acids prepared by polymerising simple molecules. It is used to make plastics.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Plastic Packing Goods Manufacturing market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

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    This report on Plastic Packing Goods Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Plastic Packing Goods Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Plastic Packing Goods Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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