2023 and the packaging industry

2022 was another strong year for the corrugated packaging industry in the UK. Not without its challenges, the corrugated industry continues to thrive as the switch from non-recyclable packaging materials remains a priority for many businesses as they endeavour to fulfil robust Environmental, Social and Governance (ESG) policies.

Gareth Stell, Logson Group Sales Director offers comment on what he thinks 2023 will bring.

During 2022 paper prices stabilised after a turbulent couple of years attributed to the global challenges of the pandemic. And, the recycling market also buoyed, with recycling rates becoming healthier once more. The political landscape in the UK has not been helpful to business generally, so we hope that a period of stability in that arena can be enjoyed in 2023 and that this will impact positively on the manufacturing sector.

Despite the challenges of the year, our teams responded to higher production volumes with their usual professionalism, to support businesses making the switch to corrugated. Perhaps one thing that is very evident, is the experience that our teams have in developing packaging solutions that are innovative, material efficient and fit for purpose. Indeed, this resulted in us being named as UK Packaging company of the year for 2022 at the UK Packaging Awards, an accolade that truly reflects the status of the business and its ambition and drive for the future. We’re in a strong position as we begin 2023 and we look forward to ongoing investment for our teams reinforcing our position as a market leader in the UK.

But what of the wider industry?

Size and stature

The UK paper industry is a significant one to be part of. Statistics from the Confederation of Paper Industries (CPI) reports an annual turnover of £12bn giving employment to 62,000 employees.

This shows the size and stature of the industry and with volumes expected to be lower than the highs seen in the latter part of 2020 and through 2021, the demand for corrugated undoubtedly remains high. However, we believe that the main focus for our customers, both existing and prospective will be to find ways to maximise material efficiencies and maximise product protection through the supply chain.

Supporting external goals

We expect that our expertise will continue to be called upon to find solutions that replace non-recyclable solutions. Coupled with the Plastic Packaging Tax, which was introduced in April of 2022, it has only served to drive demand for fully recyclable packaging such as corrugated.

It’s not just about the outer box too. Fittings, dividers, and our bespoke packaging solutions all help to protect product, use material efficiency, and support sustainability goals.

In addition, the Extended Producer Responsibility (EPR) scheme, first muted over 12 months ago, also comes into play in 2023.

Informative packaging

As supply chains become more sophisticated, we know from experience that packaging needs to support this.

Whether it’s QR codes, EPR information, product description or the fact that your packing line is becoming automated, corrugated packaging can deliver in so many ways due to its flexibility and the way it supports the digital age.

So, as 2023 gets underway, the future for the corrugated packaging industry looks strong.

We will continue to deliver across our network of sites and through our expertise and professionalism and innovative, award winning packaging solutions.