Synthetic glues are well-established products that generate most of the Glue and Adhesives Manufacturing industry's revenue. There's now an enormous range of specialised adhesive formulas, as many downstream manufacturers have moved away from traditional joining processes like welding towards structural adhesive bonding. Adhesive solutions are also being used more commonly in other fields, like medicine. Over the five years through 2023-24, industry revenue is forecast to inch upwards at a compound annual rate of 0.3% to £667.9 million. The industry recorded massive falls in revenue following the EU referendum – the economic uncertainty that followed the vote slashed the total value of construction and cut demand from motor vehicle manufacturers, weighting on demand from major downstream markets. This was followed by COVID-19 restrictions slashing sales of glue and adhesive products as manufacturing activity was severely constrained across the board. Aircraft and automotive manufacturing in the UK have rebounded in the past couple of years, supporting industrial adhesive sales. However, construction activity remains very low, with only repair and maintenance activity supporting sales of glue and adhesive products. Industry revenue is forecast to drop by 8.6% in 2023-24 as low consumer confidence, persistent inflation and high interest rates keep downstream activity (primarily in the construction and consumer markets) constrained and inflate operating costs. Emerging demand for bioadhesives and the growing trend for sustainability will positively influence revenue growth in the coming years. These trends will boost adhesives derived from sustainable raw materials or produced using environmentally friendly processes – these products will become increasingly popular among customers. New innovative adhesive applications and increasing activity from industrial and construction-related downstream markets will propel adhesive sales in the coming years. Industry revenue is forecast to grow at a compound annual rate of 1.6% over the five years through 2028-29 to reach £722.1 million.

The Paper and Paperboard Manufacturing industry faces the ever-growing threat and pressure of IT and telecommunications adoption, reducing paper usage. As such, over the five years through 2024-25, industry revenue is expected to slump at a compound annual rate of 2.3% to £3 billion. Some leading manufacturers, like AW UK Holdings Ltd, have exited the industry, while others have seen factory closures, like the Stoneywood paper mill in Aberdeen in 2022, contributing to the industry's downfall. Following some companies’ exits, the industry is consolidating, with many more prominent manufacturers acquiring smaller businesses. The COVID-19 outbreak in 2020-21 caused a large slump in industry revenue. Volatile commodity prices and weak downstream conditions, caused by forced business closures and more cautious consumer spending, led to widespread economic uncertainty and low investment. Industry imports and exports tanked amid supply chain disruption and trade restrictions off the back of the COVID-19 outbreak. The paper stationery manufacturing market and newspaper publishers took a huge hit, partly because of increased IT and telecommunication adoption, driven by a work-from-home trend that reduced paper consumption. Revenue is forecast to contract by 0.6% in 2024-25 and remain below pre-pandemic levels despite a promising revenue recovery after lockdown restrictions were lifted. Volatile wood pulp and paper prices, more immense regulatory pressures and supply chain disruption have caused industry profit to remain low. However, inflation stabilising in 2023-24 thanks to high interest rates limiting borrowing is rebuilding some consumer confidence in 2024-25. The ongoing shift towards electronic communications and media will continue to create challenging conditions for the industry over the coming years. In the short term, easing macroeconomic headwinds will support revenue prospects, especially as paper manufacturers start to re-invest their widening profit into the production process. Continuing investment in sustainability and automation practices within manufacturing facilities will put manufacturers in an excellent position to capitalise on a growing packaging and paper bag manufacturing market. As the plastic packaging tax escalates, paper manufacturers will sway customers away from unsustainable plastic bag manufacturers. Over the five years through 2029-30, industry revenue is forecast to creep upwards at a compound annual rate of 0.3% to exceed £3.1 billion.