The Cardboard Packaging Industry in the UK: Market Insights & Outlook
The cardboard packaging industry in the United Kingdom represents a critical pillar of the nation’s manufacturing base, underpinning essential supply chains across multiple sectors. From retail and e-commerce to food and beverage, pharmaceuticals, consumer electronics, and logistics, cardboard packaging serves as a fundamental enabler of both product protection and operational efficiency. Its versatility, cost-effectiveness, and recyclability make it a preferred material in both B2B and B2C environments.
As the global economy pivots towards more sustainable practices, cardboard packaging has gained prominence not only as a practical solution but also as a symbol of environmental stewardship. Businesses and consumers alike are prioritising sustainable packaging alternatives, and cardboard — particularly corrugated solutions — is leading the charge. With recovery and recycling rates in the UK consistently exceeding 80%, cardboard continues to demonstrate its value within a circular economy framework.
According to recent Cardboard Packaging Industry Statistics, the sector is experiencing steady growth, reflecting both sustained demand and increasing regulatory emphasis on sustainability. These trends signal a long-term shift towards packaging solutions that align with environmental objectives while supporting the needs of a fast-paced, modern economy. The industry’s adaptability and resilience position it as a vital contributor to the UK’s transition to greener supply chains and more responsible consumption.
Industry Overview & Market Size
The UK’s cardboard packaging and paper bag manufacturing industry is projected to reach a market size of £6.2 billion by 2025, according to IBISWorld. This reflects a compound annual growth rate (CAGR) of 1.5% between 2020 and 2025 — a clear indicator of sustained demand and industry resilience, even in the face of broader economic uncertainties and shifting market dynamics.
This growth is being fuelled by a combination of traditional industrial requirements and evolving retail behaviours, most notably the rapid expansion of e-commerce and home delivery services. The shift towards digital purchasing habits has significantly increased the need for durable, lightweight, and recyclable packaging solutions — with cardboard, particularly corrugated formats, meeting these demands effectively.
In parallel, heightened awareness around environmental sustainability is reshaping consumer expectations and influencing corporate procurement strategies. As businesses across sectors prioritise eco-friendly practices, cardboard packaging continues to gain traction as a preferred material, offering both functional reliability and environmental accountability.
Historical Perspective: A Legacy of Innovation
The UK has a long-standing history in paper and cardboard production. In 1940, domestic production of corrugated packaging stood at just 125,000 tonnes. By 1980, this had increased more than tenfold to over 1.5 million tonnes. Fast-forward to 2017, and UK manufacturers produced 4.8 billion square metres of corrugated board, with a market value of £2.3 billion.
Corrugated packaging, in particular, has become the most utilised packaging format across the UK — accounting for over 30% of all packaging materials. Its popularity stems from its lightweight yet robust design, excellent protective qualities, and ease of recycling.
E-Commerce and Shifting Consumer Habits
The growth of e-commerce has revolutionised packaging demands. Cardboard, with its structural integrity and adaptability, has become the packaging of choice for online retailers — offering excellent protection during transit, while also supporting branding and customer experience.
E-commerce packaging must now fulfil multiple roles: protective, presentational, and sustainable. Corrugated solutions provide all three, and as the e-commerce sector continues to scale, so too will the demand for versatile cardboard packaging.
Sustainability: Leading the Way to a Greener Future
Sustainability now plays a central role in driving innovation and investment across the packaging industry. In 2023, the UK generated approximately 5.4 million metric tonnes of paper and cardboard packaging waste, according to Statista. Encouragingly, cardboard remains one of the most widely recycled materials in the UK, with recovery and recycling rates consistently exceeding 80%.
Manufacturers and packaging suppliers are increasing the use of recycled content, improving material efficiency, and actively reducing waste across the supply chain. Many are investing in recyclable designs and technologies to minimise environmental impact. Rising consumer expectations and regulatory pressures are also accelerating the shift towards sustainable packaging.
The circular economy model—where packaging is reused, recycled, and reintegrated—is becoming standard practice across the sector. This approach supports environmental goals while enhancing operational efficiency and brand reputation in an increasingly eco-conscious market.
Future Outlook: Innovation, Regulation, and Growth
Looking ahead, the packaging industry in the UK is forecast to grow from 119.7 billion units in 2023 to 129 billion units by 2028, representing a CAGR of 1.5% (GlobalData). While flexible packaging dominates in volume, cardboard and corrugated formats remain vital to sectors requiring sturdy, sustainable, and cost-effective solutions.
Regulatory frameworks, such as the UK Plastic Packaging Tax and the Extended Producer Responsibility (EPR) scheme, are also encouraging a shift towards non-plastic alternatives — placing cardboard in a strong position as a go-to material.
Innovation in cardboard design, from water-resistant coatings to easy-to-recycle inks, is further enhancing its appeal. Meanwhile, automation and digital printing technologies are helping manufacturers meet rising demand efficiently, without compromising on environmental goals.
Conclusion: Cardboard as a Cornerstone of Sustainable Packaging
The UK’s cardboard packaging industry is not merely surviving — it is evolving, adapting, and thriving. As consumer preferences, environmental responsibilities, and technological advancements converge, cardboard packaging stands as a model of what responsible, future-focused industry should look like.
At its core, the industry combines the best of tradition — strength, reliability, and wide application — with the spirit of modern sustainability. For businesses committed to reducing their environmental impact while maintaining operational efficiency, cardboard packaging is an enduring, intelligent choice.