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Viewing report
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Packaging (Metals and Aerosols) Market Report 2003
Key Note Publications Ltd, May 2003
The UK metals packaging market continues to be vibrant despite growing competition from plastics. In many key consumption areas, the UK continues to lead the rest of Europe with opportunities for metal packaging. In 2002, the apparent UK market for metal packaging containers reached an estimated £2.34bn, having undergone year-on-year increases since 1998.
The growth of the Internet and e-commerce is having a significant effect on all aspects of the supply chain, from manufacturing through to retail. Metal packaging manufacturers and all suppliers to the retail sector are being forced to become involved in e-logistics and e-commerce and to engage in electronic business-to-business contacts. For manufacturers, the Internet offers the potential to sell direct to the customer. While some manufacturers are taking advantage of the Internet to sell to distinct consumer groups and create new product offerings, most are more cautious, aware that their products would be unlikely to generate sufficient traffic to make an online service viable.
Steel and aluminium continue to compete in many packaging areas, such as aerosols and cans. A significant factor underlying can manufacturers' choice between tinplate and aluminium is material cost. Aluminium is often at a disadvantage because it is more prone to fluctuations in price than steel tinplate. As aluminium accounts for a higher percentage of the cost of a can than steel, any rise in aluminium prices can endanger the material's competitiveness.
The European population is ageing fast and by the end of the current decade a significant portion of the EU's total population will be aged over 65. This will have real repercussions for the UK metal packaging industry, as an ageing population will dictate shopping patterns. A growth in online grocery shopping is likely, as it can be a boon for people who cannot get out of the house easily or who value time over money.
In the coming years, a substantial reduction in exports from the UK into the major European markets is expected, although the domestic market will continue to hold up well, which will force most manufacturers to concentrate on the home market.
However, an increased amount of imports will be required, due to the strength of the UK market. The main multinational suppliers will start to utilise the surplus capacity at their continental European plants to supplement the output of their UK plants.
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