Egypt Flexible Packaging Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 4.82 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Egypt Flexible Packaging Market Analysis
The Egyptian flexible packaging market is anticipated to register a CAGR of 4.82% over the forecast period. The market for flexible packaging in Egypt is expected to grow over the anticipated period, driven by increased consumer demand and rising consumption from the packaging sector. The Russia-Ukraine war has slightly impacted Egypt's overall ecosystem of the flexible packaging market.
- Flexible packaging is gaining popularity as the future of packaging due to its convenient shape, ease of use, resealable properties, lightweight, and overall environmental impact compared to rigid counterparts.
- A rising number of consumer-packaged goods (CPG) companies find that using flexible packaging helps differentiate their product from the competition, resulting in increased consumer interest and, ultimately, purchases. A bonus is that brands that adopt flexibility into their line-ups find these products easier to store, display, ship, and handle.
- Brands are aggressively focused on implementing Flexible Packaging Solutions across their product line to demonstrate their strong commitment to keeping the earth greener since sustainability is quickly becoming the most crucial trend in packaging. Recycled packaging choices are favored by businesses and customers concerned about the environment due to limitations, tight compliance requirements, and other sorts of bans being implemented globally.
- Egypt is witnessing positive volume sales growth across packaged food as population growth continues to underpin rising sales across the country. All these factors are collectively expected to drive the consumption of consumer products that require flexible packaging products for packaging. Furthermore, expanding new retail stores and outlets is estimated to augment the demand for flexible plastic products in the next few years.
- However, the growing awareness of the environmental impact of single-use plastic and unsustainable business plastic solutions has increased demand for environmentally friendly products. The initiative by Egypt's local government has raised awareness about alternatives to single-use plastic packaging that significantly impacted plastic packaging consumption.
- The COVID-19 outbreak significantly impacted Egypt's SMEs that produce flexible packaging. The effects of COVID-19 on SMEs resulted in both operational and financial issues. Additionally, there was a noticeable disturbance in the supply chain regarding output. Financially, they have little cash on hand, but instead of applying for a loan to pay their bills, they temporarily choose to cut back on production.
- Further, the Russia-Ukraine war slightly affected the country's packaging since it does not rely much on Russia or Ukraine to trade flexible packaging products.
Egypt Flexible Packaging Market Trends
This section covers the major market trends shaping the Egypt Flexible Packaging Market according to our research experts:
Growing Demand from Food Industry
- A significant increase in demand for bottled milk, frozen semi-prepared foods, and portable snacks has been witnessed. Additionally, food sales in this nation have increased due to the pandemic's alteration of consumer tastes and the need for flexible packaging due to health concerns.
- The COVID-19 pandemic across the country has resulted in a new transformation in Cairo's and Egypt's e-commerce segment. As a result of the pandemic, the closure of malls has changed the logistics landscape in Egypt. Consumers have shifted their preferences toward e-commerce; therefore, the e-commerce sector is striving to keep up with the rising demand for online shopping.
- Moreover, owing to the rising export of food and agricultural products, the government focuses on capturing opportunities that benefit the agriculture sector. According to the Minister of Planning and Economic Development, Egypt aims to increase its agriculture sector's gross domestic product (GDP) contribution to 12% by 2024 and increase agricultural production by 30% by 2024.
- Egypt is one of the prominent exporters of fruits and vegetables. According to the Ministry of Agriculture and Land Reclamation, Egypt's agricultural exports amounted to about 5.2 million tonnes from January to November 2021, recording an increase of around 600 tonnes from the same period in 2020. This growth in export activities witnessed the demand for flexible packaging.
- Further, according to a USDA report, the top consumer goods imported in 2021 by Egypt were beef and beef products, dairy products, spices, fresh fruits, tea, chocolate and cocoa products, tree nuts, soups and other meal preparations, fresh vegetables, chicken meat and products, and tree nuts (ex. eggs). The top suppliers were India, which contributed USD 692 million (18% of total share), Brazil, which contributed USD 324 million (9%), the United States, which contributed USD 243 million (6%); Kenya, which contributed USD 202 million (5%) the Netherlands, which contributed USD 163 million (4%) and Italy, which contributed USD 159 million (4%). The significant import of food products may create opportunities for several flexible packaging vendors.
Bags and Pouches Segment Expected to Hold Significant Market Share
- Consumers have shown more preference for retail products, such as general merchandise, fabrics, apparel, and other accessories, besides food and beverages. Food and beverage retail products are expected to have a positive outlook with the fast-paced lifestyle of the people. The food and beverage end-use sector expects high demand for paper bags.
- Egypt is witnessing positive volume sales growth across packaged food as population growth continues to underpin rising sales across the country. All these factors are collectively expected to drive the consumption of consumer products that require bags for packaging. Furthermore, expanding new retail stores and outlets is estimated to augment the demand for plastic bags in the next few years.
- In addition, retail stores and brands majorly print their brand name along with promotional and marketing messages on the plastic bags. Increasing the use of bags as a low-cost marketing tool is anticipated to fuel the demand for the bags in the market in the coming years.
- Several initiatives by the government in the country are expected to positively impact the demand for paper bags. For instance, in August 2022, the government of Egypt targeted the reduction of the annual consumption of single-use plastic bags to 100 bags per capita by 2025 and 50 by 2030.
- Further, according to ITC data, in 2021, the imports of plastics and articles in Egypt were recorded at around USD 4093.208 million, a 37.42% increase in the value from the previous year, 2020, which recorded about USD 2978.579 million. Such a rise in imports may increase the adoption of flexible packaging in the country.
Egypt Flexible Packaging Industry Overview
The Egyptian flexible packaging market is consolidated and has a few major players with significant market shares. Some participants, such as Mondi Plc, Huhtamaki Group, etc., benefit from the enhanced market reputation and broader regional presence. The market players are concentrating on growing their customer base throughout the end-user sectors. The market witnessed firms collaborate to implement a circular economy model of recycling plastics.
- April 2022: The paper bag conversion lines were acquired by Mondi Paper Bags, a division of the Mondi Group, from National Bag and Egypt Sack, two divisions of Lafarge Cement Egypt, a significant cement manufacturer in the nation. The new manufacturing lines will help Mondi enhance its position in the Egyptian paper bag market and expand its capacity by around 150-180 million bags yearly.
- February 2022: Coveris, an Austria-based flexible packaging specializing in eco-friendly packaging, unveiled a thin stretch film line with 30% recycled content. According to the manufacturer, these recycled stretch films are now available in the thinnest thickness. Both hand and pre-stretch versions are being made available. In addition to being recyclable, the business claimed that the films offer the same packaging and transportation economies as virgin materials.
Egypt Flexible Packaging Market Leaders
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Huhtamaki Egypt Flexible Packaging
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SofiPack S.A.E (Sochema Group)
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International Printing & Packaging Materials Co.
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Coveris Flexibles Egypt Ltd.
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Mondi Plc
*Disclaimer: Major Players sorted in no particular order
Egypt Flexible Packaging Market News
- September 2022: The Egyptian government decided against setting up a plant for biodegradable packaging that would produce eco-friendly bags to decrease plastic waste. The Egyptian Minister of Environment verified the news, stating that Egypt and the United States had entered a deal to create a facility to make environmentally friendly bags out of eggshells rather than plastic.
- June 2022: Dow, a prominent chemical manufacturer, announced the extension of its Project REFLEX program into Egypt, following a fruitful trial phase in Nigeria. The initiative, carried out in collaboration with local partners, intends to improve the recycling of flexible packaging in Africa to create a market for recovered products that will help solve the waste problem while creating employment possibilities for local populations.
Egypt Flexible Packaging Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Market Overview
- 4.2 Industry Value Chain Analysis
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4.3 Industry Attractiveness - Porter's Five Forces Analysis
- 4.3.1 Bargaining Power of Suppliers
- 4.3.2 Bargaining Power of Buyers
- 4.3.3 Threat of New Entrants
- 4.3.4 Threat of Substitutes
- 4.3.5 Intensity of Competitive Rivalry
- 4.4 Assessment of Impact of COVID-19 on the Industry
5. MARKET DYNAMICS
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5.1 Market Drivers
- 5.1.1 Increasing Demand For Sustainable Packaging Solutions
- 5.1.2 Growing Demand for Food Industry
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5.2 Market Challenges
- 5.2.1 Rising Government Regulations and Environment Concerns
- 5.2.2 Concerns Regarding the Rising Raw Material Costs
- 5.3 Market Opportunities
6. MARKET SEGMENTATION
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6.1 By Product Type
- 6.1.1 Bags and Pouches
- 6.1.2 Films and Wraps
- 6.1.3 Other Product Types
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6.2 By End User Industries
- 6.2.1 Food
- 6.2.2 Beverage
- 6.2.3 Healthcare and Pharmaceutical
- 6.2.4 Retail
- 6.2.5 Other End-user Industries
7. COMPETITIVE LANDSCAPE
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7.1 Company Profiles
- 7.1.1 SofiPack S.A.E (Sochema Group)
- 7.1.2 International Printing & Packaging Materials Co.
- 7.1.3 Coveris Flexibles Egypt Ltd.
- 7.1.4 Mondi Plc
- 7.1.5 Rotografia Group
- 7.1.6 Huhtamaki Egypt Flexible Packaging
- 7.1.7 Taghleef Industries S.A.E. Egypt
- 7.1.8 Flex Films (UFlex Limited)
- 7.1.9 Packteck
- 7.1.10 DIMEX Egypt Co.
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OUTLOOK OF THE MARKET
** Subject To AvailablityEgypt Flexible Packaging Industry Segmentation
The market for the study defines the revenues (USD million) generated from the sales of flexible packaging products. The study covers the flexible packaging market tracked in terms of consumption and is limited to flexible packaging products made from plastic, paper, and aluminum.
The study on Egypt's flexible packaging market tracks the demand for material types such as plastic (flexible (wraps, pouches, films, stand-up pouches, tubes, sleeves, sachets, liners, etc.), paper (paper bags, liquid board, paper wraps) and metal foils (aluminum). Also, it tracks the market size in terms of revenue for the respective end-user industry verticals from the listed product types. The study factors in the impact of COVID-19 on the market studied, based on the prevalent base scenarios, key themes (growing demand for single-use), and end-user vertical-related demand cycles.
| By Product Type | Bags and Pouches |
| Films and Wraps | |
| Other Product Types | |
| By End User Industries | Food |
| Beverage | |
| Healthcare and Pharmaceutical | |
| Retail | |
| Other End-user Industries |
Egypt Flexible Packaging Market Research FAQs
What is the current Egypt Flexible Packaging Market size?
The Egypt Flexible Packaging Market is projected to register a CAGR of 4.82% during the forecast period (2024-2029)
Who are the key players in Egypt Flexible Packaging Market?
Huhtamaki Egypt Flexible Packaging, SofiPack S.A.E (Sochema Group), International Printing & Packaging Materials Co., Coveris Flexibles Egypt Ltd. and Mondi Plc are the major companies operating in the Egypt Flexible Packaging Market.
What years does this Egypt Flexible Packaging Market cover?
The report covers the Egypt Flexible Packaging Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Egypt Flexible Packaging Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Egypt Flexible Packaging Industry Report
Statistics for the 2024 Egypt Flexible Packaging market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Egypt Flexible Packaging analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
