Paper & Paperboard Packaging Manufacturing in the UK - Market Size, Industry Analysis, Trends and Forecasts (2025-2029)

Paper & Paperboard Packaging Manufacturing in the UK industry analysis

Europe's Paper and Paperboard Packaging Manufacturing industry is riding a wave of change driven by a hike in online retail sales and a deepening commitment to sustainability. As more consumers turn to e-commerce for their buying needs, the demand for paper packaging solutions has shot up, nudging the industry towards innovative and eco-friendly options. However, after a vigorous revenue surge in 2022, fuelled by global wood pulp price hikes and cost pass-throughs, the industry has faced multiple setbacks, including heightened supply chain disruptions, fluctuating energy costs and a turbulent macroeconomic environment. Notably, the Red Sea crisis and ongoing cost-of-living pressures have made raw material procurement and price stability ongoing battles, subduing revenue growth somewhat and weighing on profit for major manufacturers like UPM-Kymmene and Sappi.

Trends and Insights

• Eco-friendly packaging is in high demand. Driven by consumer and regulatory pressures, European markets are seeing a surge in innovation as paper manufacturers strive to develop recyclable and compostable materials.
• The proposed 20% US tariffs are likely to slash European paper exports. Paper and paperboard could lose 600,000 tonnes of paperboard exports annually, forcing manufacturers to absorb costs or cut capacity amid a huge surplus. This risks oversupply in Europe’s already competitive market, pressuring profit.
• Innovation leads in paper packaging. Successful European paper and paperboard packaging manufacturers are gaining a competitive edge by focusing on innovative, sustainable solutions that meet evolving consumer and regulatory demands for eco-friendliness.