The UK Plastics Market

08 Nov 2007

News posted by Shannon Dumper

After researching the UK Plastics Market Development and taking into account various other factors the following major conclusions can be drawn from MBD s report.

Market Review 2003 - 2007

The apparent UK market for plastics in primary form in volume terms demonstrated growth during the majority of the review period, a trend that is anticipated to continue in the current year. Indeed, a modest 1% increase is expected to take volume sales to 5.2 billion tonnes in 2007. This represents an overall cumulative increase of 5% compared with 2003.

The value of UK sales of plastics in primary form is projected to reach £7071.9 million in 2007, equivalent to a 4% increase in the year, largely attributable to raw material price increases. This consolidates moderate growth of 2% and 3% in 2005 and 2006 respectively

Market Forecast 2008 - 2012

Volume sales of plastics in primary form are projected to increase throughout the forecast period, albeit at moderate annual levels. The market is anticipated to increase by a cumulative 6% between 2008 and 2012, reaching a five year peak of 5.5 billion tonnes in the latter year. Anticipated volume growth reflects material substitution in favour of plastics, along with increased imports. However, growth is expected to be constrained by the tendency of manufacturers to reduce the thickness of plastic products, in turn reducing the impact on the environment.

Value of Plastics Products Market Anticipated to Increase Each Year to 2012

The value of the plastics products market is anticipated to increase during each year up to 2012, with annual levels of real term growth oscillating between 1% and 3%. Demand for plastic products is projected to reach £16 878 million (at current prices) in 2012, equivalent to a cumulative increase of 9% compared with 2007. This reflects continued growth in construction output, along with increasing substitution of traditional materials for plastic in the tubes and pipes sector. However, the market is expected to be restricted by intense price competition, increasing energy costs and scarcity of scrap due to demand from the Far East.

Demand For Plastic Packaging is Projected to Reach £3505.1 Million

Demand for plastic packaging is anticipated to increase moderately during three of the five years under review, although annual levels are not expected to exceed 2%. In 2012, the UK market for plastic packaging is projected to reach £3505.1 million (at 2007 prices), representing marginal growth in the year and an overall real term increase of 1% compared with 2007. This modest growth reflects the relative maturity of the sector. Indeed, the market for plastic packaging is increasingly reliant on the trends in the end-use sectors, which are in themselves mature.

18% Real Term Growth Forecast for Plastic Tubes and Pipes Sector

The plastic tubes and pipes sector is expected to continue to benefit from the substitution trend away from traditional materials such as copper towards plastics, notably in the plumbing sector. In value terms, demand in the sector is anticipated to increase throughout the forecast period, culminating in overall real term growth of 18% between 2007 and 2012, reaching £1206.3 million (at current prices) in the latter year.

Demand for Plastic Builders Ware Expected to Peak at £4352.8 Million in 2012

In value terms, sales of plastic building products are forecast to increase during each year under review, although annual levels of real term growth are likely to remain moderate at between 1% and 2%. Demand for plastic builders ware is expected to peak at £4352.8 million (at 2007 prices) in 2012. Furthermore, the sector is projected to remain the most important element of the plastic products market, commanding 26% of the total between 2008 and 2012.