Market Update March 2024
Plastic Prices and Raw Materials
The global plastic market has been experiencing significant changes, with key materials such as Polyethylene (PE), including both Low-Density Polyethylene (LDPE) and Linear Low-Density Polyethylene (LLDPE), Polypropylene (PP), and other plastics being essential for various applications within the FMCG industry, from packaging to consumer goods
Shipping and Supply Chain Challenges
The FMCG industry is also navigating through increased shipping costs and supply chain challenges. While the situation isn’t as dire as during the COVID-19 pandemic, the industry is feeling the impact of issues such as the Red Sea shipping challenges. To mitigate these challenges, shipping lines have increased their capacity, helping to alleviate some of the pressure on stock costs. However, companies must continue to monitor these developments closely as they can affect delivery times and overall supply chain efficiency. Placing forward orders of your transit packaging will help us to ensure you have the stock when you need it without delays or huge cost increase. Get in touch to place your forward orders.
Sustainability and Environmental Impact
Sustainability remains a key focus within the market, with more and more companies prioritising the use of recycled materials and sourcing plastic-free alternatives such as paper packaging. The FMCG sector is exploring innovative packaging solutions which are made from over 30% recycled materials, in order to pass the UK Plastic Packaging Tax threshold, highlighting the industry’s push towards sustainability
Sustainability isn’t just about packaging but includes the entire supply chain, from production to the end consumer. Companies are focusing on reducing their carbon footprint, with significant emissions stemming from supply chains. Addressing these challenges requires a holistic outlook that encompasses environmental, social, and economic factors, aiming for true sustainability
The market is at a critical stage, dealing with the dual challenges of fluctuating plastic prices and the need for greater sustainability alongside shipping and supply chain challenges. Companies are responding by adapting their supply chains, exploring more sustainable materials and practices, and closely monitoring costs to remain competitive. The industry’s ability to innovate and adapt will be key to its continued growth and sustainability in the face of these challenges.
Get in touch if you need help navigating through these market wide issues and trends.