Food and Drink Packaging Trends - UK - January 2011

Estimated to reach £5.6 billion in 2010, the food and drink packaging market has experienced a 3.2% decline between 2005 and 2010. Manufacturers, brands and retailers are increasingly using packaging that can be easily recycled or is recyclable, in order to reduce the amount of waste sent to landfill and meet their self-imposed targets of reducing packaging by 30% by 2015.

Table of contents

Issues in the Market
Key themes
Definition
Abbreviations
Future Opportunities
A presence in the home
How beautiful!
Market in Brief
Value sales come under pressure
Environmental concerns
Innovation continues
Packaging attributes and attitudes
Internal Market Environment
Key points
Environmental concern wanes
Figure 1: Trends in agreement with selected lifestyle statements, 2006-10
Attractiveness of little importance
Figure 2: Trends in agreement with selected lifestyle statements, 2006-10
Almost three in four consciously recycle
Figure 3: Trends in agreement with selected lifestyle statements, 2006-10
CSR is still an issue
Figure 4: Trends in agreement with selected lifestyle statements, 2006-10
Labelling helps to educate
Figure 5: Trends in agreement with selected lifestyle statements, 2006-10
Broader Market Environment
Key points
Packaging targets
Figure 6: Business recovery and recycling targets for Great Britain, 2010-20
The impact of WRAP
Raw materials costs
Demographic changes
ABs most environmentally-friendly
Figure 7: Forecast adult population trends, by socio-economic group, 2005-15
Growth in older consumers presents an opportunity
Figure 8: Trends in the age structure of the UK population, in 000s, 2005-15
Rise in one-person households presents a challenge
Figure 9: Changes in UK households, by size, by percentage 2005-15
Strengths and Weaknesses
Strengths
Weaknesses
Who’s Innovating?
Key points
Traditional formats dominate
Focus on the environment
Plastic popular for food…
Figure 10: NPD in food, percentage of launches, by packaging type, 2009-10
… and the non-alcoholic drinks category…
… while glass reigns for alcoholic drinks
Design-led packaging
Retailer and Manufacturer Initiatives
Key points
The Courtauld Commitment
Retailer action
Manufacturer action
Market Size and Forecast
Key points
Value sales decline
Figure 11: UK Food and Drink Packaging market, by value at msp, 2005-2015
Future growth in the market
Figure 12: Forecast of the UK food and drink packaging industry, by value at MSP, 2005-15
Segmentation
Figure 13: Forecast of the UK food packaging industry, by value at MSP, 2005-15
Figure 14: Forecast of the UK drink packaging industry, by value at msp, 2005-15
Segment Performance
Key points
Food segmentation remains unchanged
Paper dominates
Figure 15: UK value sales of food packaging industry at MSP, by sector, 2007-10
Plastic
Metal experiences fall despite innovation
Glass sees drop in demand
Drink dominated by metal
Figure 16: UK value sales of drink packaging industry at MSP, by sector, 2007-10
Plastic grows share
Glass relies of alcoholic sector
Paper and board come under pressure
The Consumer – Packaging Attributes
Key points
Convenience is the key driver
Figure 17: Qualities considered most important in packaging of food and drink, November 2010
Figure 18: Qualities considered most important in packaging of food and drink, by age, November 2010
Longer life
Figure 19: Index of qualities considered most important in packaging of food and drink, by socio-economic status, household size and grocery stores used, (Average = 100), November 2010
Figure 20: Qualities considered most important in packaging of food and drink, by gender, November 2010
Helping the environment
Figure 21: Index of qualities considered most important in packaging of food and drink, by gender, socio-economic status and annual household income, (Average = 100), November 2010
Labelling is the focus for appearance
Figure 22: Qualities considered most important in packaging of food and drink, by gender, socio-economic status and annual household income, (Average = 100), November 2010
The Consumer – Attitudes Towards Food Waste
Key points
Focus on food waste
Figure 23: Statements on food waste, November 2010
Figure 24: Statements on food waste, by grocery stores used, November 2010
Reducers
NPD to help
Figure 25: Index of agreement with the statement “I would like to see more single-serve portions to help me cut back on waste”, by age, household size and marital status, (average = 100), November 2010
Educating consumers
The Consumer – Attitudes Towards Drinks Packaging
Key points
Ethical/environmental concerns
Figure 26: Index of agreement with statements on drinks packaging, by age and annual household income, (average = 100), November 2010
Figure 27: Statements on drinks packaging, November 2010
The young are most adventurous…
Figure 28: Agreement with statements on drinks packaging, by age, November 2010
… and see the value in gifting
Figure 29: Agreement with statements on drinks packaging, by gender and age, November 2010
Apathetic consumers
Figure 30: Statements on drinks packaging, November 2010
The Consumer – Attitudes Towards Food and Drink Packaging
Key points
Responsibility lies with the supermarkets…
Figure 31: Statements on food and drink packaging, by age, November 2010
… and the government
Cutting back
Figure 32: Index of agreement with statements on food and drink packaging, by gender, age, socio-economic status and annual household income, (Average = 100), November 2010
Active engagement
Figure 33: Statements on food and drink packaging, November 2010
Figure 34: Index of agreement and disagreement with the statement “I do not care how much packaging there is on food and drink, by gender, age, socio-economic status and annual household income, (Average = 100), November 2010
Consumer confusion
Figure 35: Agreement with statements on food and drink packaging, by gender and age, November 2010
The Consumer – Targeting Opportunities
Key points
Figure 36: Consumer clusters for food and drink packaging, November 2010
Environmentals (26%)
Non-Plussed (26%)
Inactive (24%)
Keen (24%)
Appendix – Internal Market Environment
Figure 37: Agreement with selected lifestyle statements, by demographics, 2010
Figure 38: Trends in agreement with selected lifestyle statements, 2006-10
Figure 39: Trends in agreement with selected lifestyle statements, 2006-10
Figure 40: Agreement with selected lifestyle statements, by demographics, 2010
Appendix – Broader Market Environment
Figure 41: Trends in the age structure of the UK population, 2005-15
Appendix – Who’s Innovating?
Figure 42: NPD in the food category, by packaging type, 2009-10
Figure 43: NPD in food, percentage of launches, by food category, 2009-10
Figure 44: NPD in the non-alcoholic drinks category, by packaging type, 2009-10
Figure 45: NPD in the alcoholic drinks category, by packaging type, 2009-10
Figure 46: Top 20 companies by new product development in the alcoholic drinks category, 2009-10
Appendix – The Consumer – Packaging Attributes
Figure 47: Qualities considered most important in packaging of food and drink, by demographics, November 2010
Figure 48: Qualities considered most important in packaging of food and drink, by demographics, November 2010
Appendix – Consumer Attitudes Towards Food Waste
Figure 49: Agreement with the statement “I always compost my food waste or put it in a council food waste collection”, by demographics, November 2010
Figure 50: Agreement with the statement “I don’t think food waste is a problem as it is all bio-degradable”, by demographics, November 2010
Appendix – Consumer Attitudes Towards Drinks Packaging
Figure 51: Statements on packaging of alcoholic drinks, November 2010
Figure 52: Agreement with the statement “It’s worth paying more for gift wrapped alcoholic drinks”, by demographics, November 2010
Figure 53: Agreement with the statement “I’d like to see a larger range of gift packs (eg drink and chocolates, drink and glass, etc)”, by demographics, November 2010
Appendix – Consumer Attitudes Towards Food and Drink Packaging
Figure 54: Statements on food and drink packaging, November 2010
Figure 55: Agreement with the statement “Supermarkets use far too much packaging for food items”, by demographics, November 2010
Figure 56: Agreement with the statement “I try to buy products with minimal packaging”, by demographics, November 2010
Figure 57: Agreement with the statement “I do not care how much packaging there is on food and drink”, by demographics, November 2010
Appendix – Targeting Opportunities
Figure 58: Target groups, by demographics, November 2010

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