Innovation will promote growth as industry products compete with substitutes
London, UK (PRWEB) January 15, 2013
Light metal containers are a common option for packaging beverages and food. Consumer preferences for impulse and convenient purchases have been promoting growth in packaging markets. Packaging is used to protect, preserve and distribute goods while also giving brand owners an opportunity to promote their products. Light metal packaging is particularly strong in certain beverage markets where volumes are very high. Manufacturers of light metal packaging compete with alternative packaging (plastic and glass) and must innovate continually to lower their costs and minimise the environmental footprint of their products; this is normally achieved through lower use of harmful materials and frequent recycling.
The Light Metal Packaging Manufacturing industry is expected to generate revenue of £1.62 billion in 2012-13, up 0.9% compared with 2011-12. The domestic market for light metal packaging is estimated to total £1.62 billion in 2012-13, up 0.8% compared with the previous year. Industry revenue is estimated to increase at an annualised 2.1% over the five years through 2012-13. According to IBISWorld industry analyst Nigel Fitzpatrick, “the industry is in tight contest with other industries that offer substitute packaging materials, such as plastic, glass and paper”. Light metal packaging has lost market share in many food and drink packaging markets, including processed soup, jam, condiments, fruit, vegetables, drinks and fresh food. However, metal cans are gaining share in the soft drink market, although the UK soft drink market has grown at a slow pace.
Revenue is expected to increase over the five years through 2017-18 but at a slightly lesser rate than the previous five years. Fitzpatrick adds, “the industry will continue to face tough competition from alternative packaging materials, but it will increase the use of innovative materials and applications to help bolster market share and move into new markets, which will promote growth”. IBISWorld forecasts that consumer spending will weaken in 2016-17 and 2017-18, and this will weigh down on beverage sales and associated packaging demands.
The Light Metal Packaging Manufacturing industry has a high level of market share concentration. Four companies dominate the manufacture of metal containers for beverage companies. Concentration in other product segments is at a lower level, but is increasing. Major companies include Crown Packaging UK, Ball Packaging Europe UK, Rexam and Ardagh Group.
For more information on the Light Metal Packaging Manufacturing industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.
IBISWorld industry Report Key Topics
This industry manufactures metallic enclosures, tins, cans, collapsible tubes and boxes used to store and hold food and drink.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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