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Packaging Services in the UK - Market Research Report (2015-2030)

Felix Gilroy Felix Gilroy London, United Kingdom Last Updated: September 2025 SIC N82.920

Revenue

£8.6bn

2025-26

£8.6bn

Past 5-Year Growth

Profit

£X.Xbn

Employees

31,868

Businesses

4,133

Wages

£X.Xbn

Packaging Services in the UK industry analysis

Over the five years through 2025-26, the Packaging Service industry’s revenue is anticipated to climb at a compound annual rate of 8.4% to £8.6 billion, including a forecast rise of 5% in 2025-26. Mounting environmental awareness is a key driver of this growth, pushing a pronounced shift toward sustainable packaging. A 2025 study by McKinsey reveals that 30% of UK consumers actively prioritise the environmental impact of packaging, prompting retailers to overhaul their supply chains and driving demand toward providers with certified eco-credentials. Consequently, profit is inching up, as clients are increasingly willing to pay a premium for innovative, lower-impact designs. Major companies, including DHL and Integrated Packaging Services (IPS), are seeing their profit climb as they embrace their clients’ sustainability priorities.

Trends and Insights

  • Growth in online retail cushioning the industry from weak consumer confidence. Rising e-commerce demand fuels packaging needs for shipping and returns, helping offset falling orders from physical stores and supporting revenue.
  • The UK’s ageing population is driving higher demand for prescription drug packaging. Specialised solutions are needed to meet safety and regulatory standards as more Britons require multiple medications.
  • Manufacturers draw packaging companies to the Midlands. The East and West Midlands are pivotal regions for UK manufacturing, making them an ideal hub for packaging services. They also have strong transport links to the rest of the UK.
  • Innovative services offer a boost. Client companies often use packaging as a way to differentiate themselves or as a form of marketing, so offering innovative, attractive packaging and focusing on packaging's green credentials can drive up sales.
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Competitors

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Industry Statistics and Trends

Market size and recent performance (2015-2030)

Industry revenue has grown at a CAGR of 8.4 % over the past five years, to reach an estimated £8.6bn in 2025.

Trends and Insights

Growing environmental consciousness brings sustainable packaging to the forefront

  • The shift toward sustainable packaging has had a positive effect on packaging service providers’ revenue, as more clients are willing to pay a premium for environmentally friendly solutions. A survey from McKinsey in 2025 found that 30% of UK consumers prioritise the environmental impact of packaging. Retailers are looking to adapt their supply chains to meet their customers’ sustainability demands.
  • Additional trends and insights available with purchase
Packaging Services in the UK
Revenue (2015-2030)
IBISWorld Logo Source: IBISWorld

Industry outlook (2025-2030)

Market size is projected to grow over the next five years.

Trends and Insights

The UK’s growing elderly population boosts demand for pharmaceutical packaging services

  • The rapidly ageing UK population is driving an uptick in medication needs, ratcheting up the need for pharmaceutical packaging demand. The Office for National Statistics projected in 2022 that the number of people aged 85 and over would almost double from 1.7 million to 3.3 million by 2047. Similarly, in 2023, the Centre for Ageing Better highlighted that the population over 65 would rise by 30% to 10 million by 2063. The expansion of the elderly population is set to drive prescription medication sales, as a 2022 YouGov survey found that more than half of Britons take prescription drugs and 18% of over-60s take five or more prescription drugs weekly.

Biggest companies in the Packaging Services in the UK

Company
Market Share (%)
2026
Revenue (£m)
2026
DHL Supply Chain Ltd
146.4
Integrated Packaging Services Ltd
109.6
Kinaxia Ltd
54.0

To view the market share and analysis for all 4 top companies in this industry, view purchase options.

Products & Services Segmentation

Packaging Services in the UK
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Pharmaceutical goods packaging, Food and beverage packaging and Chemical goods packaging. Pharmaceutical goods packaging is the largest segment of the Packaging Services in the UK.

Trends and Insights

Changing consumer tastes boost revenue from food and beverage packaging

  • Ready-meal packaging comprises single-use containers designed to hold individual portions of prepared food, often suitable for microwave or oven use.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

Companies in this industry package client-owned materials on a fee or contract basis, using manual or automated processes. Services include bottling, filling and sealing, blister and sachet packing, security packaging for pharmaceuticals, parcel-packing, plus labelling, stamping, imprinting and bespoke wrapping.

What's included in this industry?

Products and services covered in the Packaging Services industry in the United Kingdom include Pharmaceutical goods packaging, Food and beverages packaging, Parcel packing and gift-wrapping and Chemical goods packaging.

Companies

Companies covered in the Packaging Services industry in the United Kingdom include DHL Supply Chain Ltd, Integrated Packaging Services Ltd and Kinaxia Ltd.

Purchase this report to view all 4 major companies in this industry.

Related Terms

Related terms covered in the Packaging Services industry in the United Kingdom include contract packing, wholesale bypass, soda ash, re-palletisation and blister pack.

Industry Code

SIC 2007

SIC 82.92 - Packaging Services in the UK

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

Growth in online retail cushioning the industry from weak consumer confidence. Rising e-commerce demand fuels packaging needs for shipping and returns, helping offset falling...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2015-2024) and forecast (2025-2030)
  • Employees, including historical (2015-2024) and forecast (2025-2030)
  • Businesses, including historical (2015-2024) and forecast (2025-2030)
  • Profit, including historical (2015-2025)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

The UK’s ageing population is driving higher demand for prescription drug packaging. Specialised solutions are needed to meet safety and regulatory standards as more Britons ...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2025
  • Product innovation level

Charts

  • Products & services segmentation in 2025
  • Major market segmentation in 2025

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

Manufacturers draw packaging companies to the Midlands. The East and West Midlands are pivotal regions for UK manufacturing, making them an ideal hub for packaging services. ...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2025

Tables

  • Number and share of establishments in each region in 2025
  • Number and share of revenue each region accounts for in 2025
  • Number and share of wages each region accounts for in 2025
  • Number and share of employees in each region in 2025

Detailed analysis

  • Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

Innovative services offer a boost. Client companies often use packaging as a way to differentiate themselves or as a form of marketing, so offering innovative, attractive pac...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2020-2025
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

DHL enhances its sustainability credentials. It opened a carbon neutral, solar panel-powered site in Coventry in March 2024, helping the company draw in eco-conscious clients...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2021 through 2025
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2025
  • Overview of DHL Supply Chain Ltd's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of Integrated Packaging Services Ltd's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of Kinaxia Ltd's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of revenue, market share and profit margin trend for one additional company

Detailed analysis

  • Description and key data for DHL Supply Chain Ltd, and factors influencing its performance in the industry
  • Description and key data for Integrated Packaging Services Ltd, and factors influencing its performance in the industry
  • Description and key data for Kinaxia Ltd, and factors influencing its performance in the industry
  • Description, key data and performance trends for one additional company

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

There’s a handful of associations packaging service providers can turn to. The Packing Federation, the British Contract Manufacturers and Packers Association and the Packers ...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2015-2030) 
  • Assistance historical data and forecast (2015-2030) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

Packaging providers’ profit edges upwards. Sustainable packaging has helped drive this growth – clients are willing to pay a premium for eco-friendly solutions.

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
  • Investment vs. share of economy

Data tables

  • Liquidity Ratios (2019-2023)
  • Coverage Ratios (2019-2023)
  • Leverage Ratios  (2019-2023)
  • Operating Ratios (2019-2023)
  • Assets (2019-2023)
  • Liabilities (2019-2023)
  • Cash Flow & Debt Service Ratios (2015-2030)
  • Revenue per Employee (2015-2030)
  • Revenue per Enterprise (2015-2030)
  • Employees per Establishment (2015-2030)
  • Employees per Enterprise (2015-2030)
  • Average Wage (2015-2030)
  • Wages/Revenue (2015-2030)
  • Establishments per Enterprise (2015-2030)
  • IVA/Revenue (2015-2030)
  • Imports/Demand (2015-2030)
  • Exports/Revenue (2015-2030)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2015-2030)
  • IVA (2015-2030)
  • Establishments (2015-2030)
  • Enterprises (2015-2030)
  • Employment (2015-2030)
  • Exports (2015-2030)
  • Imports (2015-2030)
  • Wages (2015-2030)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Packaging Services industry in the United Kingdom in 2025?

The market size of the Packaging Services industry in the United Kingdom is £8.6bn in 2025.

How many businesses are there in the Packaging Services industry in the United Kingdom in 2025?

There are 4,133 businesses in the Packaging Services industry in the United Kingdom, which has grown at a CAGR of 20.9 % between 2020 and 2025.

How may import tariffs affect the Packaging Services industry in the United Kingdom?

The Packaging Services industry in the United Kingdom is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.

How may export tariffs affect the Packaging Services industry in the United Kingdom?

The Packaging Services industry in the United Kingdom is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.

Has the Packaging Services industry in the United Kingdom grown or declined over the past 5 years?

The market size of the Packaging Services industry in the United Kingdom has been growing at a CAGR of 8.4 % between 2020 and 2025.

What is the forecast growth of the Packaging Services industry in the United Kingdom over the next 5 years?

Over the next five years, the Packaging Services industry in the United Kingdom is expected to grow.

What are the biggest companies in the Packaging Services industry in the United Kingdom?

The biggest companies operating in the Packaging Services industry in the United Kingdom are DHL Supply Chain Ltd, Integrated Packaging Services Ltd and Kinaxia Ltd

What does the Packaging Services industry in the United Kingdom include?

Pharmaceutical goods packaging and Food and beverages packaging are part of the Packaging Services industry in the United Kingdom.

Which companies have the highest market share in the Packaging Services industry in the United Kingdom?

The company holding the most market share in the Packaging Services industry in the United Kingdom is DHL Supply Chain Ltd.

How competitive is the Packaging Services industry in the United Kingdom?

The level of competition is high and steady in the Packaging Services industry in the United Kingdom.

Methodology

How are IBISWorld reports created?

IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in the UK include:

  • Office for National Statistics
  • Office for Budget Responsibility
  • Bank of England

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

Learn more about our methodology and data sourcing on the Help Center.

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