The UK plastic products market declined by 2 percent to £15.1 billion in 2008, according to research group Market & Business Development in its latest market review on 2004 till 2008. This reflects the economic downturn that could have affected demand. Prior to this increases of between 3 percent and 5 percent were recorded in each year, with the market value peaking at £15.4 billion in 2006.
Market growth during the first part of the review period, partially reflects favourable conditions within the plastic packaging market, along with increased imports. However increasing costs and competition has forced some companies to move their factories overseas. Despite declines in the latter two years the market for plastic products is believed to have increased in value by 6 percent overall compared with 2004.
The value of the plastic products market is expected to increase in the latter three years of the forecast period, taking sales to £14.6 billion in 2013 (at 2008 prices). Prior to this real term declines of 6 percent and 1 percent are projected for 2009 and 2010, this reflects the anticipated affect of the economic downturn on demand. Overall the UK market for plastic products is anticipated to decline by 3 percent in real terms compared with 2008.
MBD outlooks growth in the latter part of the review period that reflects a return to growth in the construction industry, 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.
This MBD UK plastics market research report analyses both the primary plastics market, which is the raw material for subsequent plastics processing, and the demand for processed plastic products. The report contains five year historical data, current market conditions and influences, together with a five year sector forecast by MBD analysts, and has recently been updated.
More information on the report`s content and prices can be found under mbdltd.co.uk.