Market Trends of Egypt Paperboard Packaging Industry
This section covers the major market trends shaping the Egypt Paperboard Packaging Market according to our research experts:
Folding Cartons is Expected to Grow at a Significant Rate Throughout the Forecast Period
- Folding cartons are one of the most common types of consumer packaging found in the Egyptian paperboard packaging market. Folding cartons are majorly used in retail packaging to hold individual products, and these packaging can also be used to promote products to encourage impulse buying.
- Food and beverage companies in the country are focusing on more investments to expand their production volume, further creating opportunities for the folding cartons segment.
- For instance, Obour Land, which has 12 Carton Pack production lines, invested EGP 600 million (USD 24.64 million) over the past three to four years. The company received an EGP 200 million (USD 8.11 million) investment fund from the National Bank of Kuwait to open four new production lines and prepare for new investments in the coming years.
- Production of folding cartons has been steadily increasing in Egypt, owing to which the country has been witnessing steady growth in the exports of cartons, boxes, and cases made from paperboard. Egypt exported USD 26.27 million worth of paperboard cartons, boxes, and cases in 2017, which increased to USD 43.5 million in 2021.
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Food Industry Segment is Expected to Hold a Significant Share Throughout the Forecast Period
- The food industry has been driving the increasing adoption of paperboard packaging in Egypt in the last few years owing to the rising domestic production of food grains like wheat, maize, and rice. According to the FAO-OECD, the production of wheat in the country is expected to reach 10.08 million tons by 2028.
- According to data published by the Ministry of Trade and Industry in April 2021, Egypt's food industries sector attracts investments of EGP 500 billion (USD 31.85 billion), which make up around 24.5% of the country's gross domestic product (GDP).
- Moreover, according to the data published by the chamber of food industries of Egypt in June 2022, food industries represent about 11% of Egypt's industrial production and employ about 25% of the workforce. There are rising obesity rates amongst the youth, increasing consumers' adoption of healthier lifestyles, and growing trends of buying premium confectionery products.
- In addition to this, a rise in the disposable income of the consumers coupled with increased investments by international Ready to Eat Food brands in the country's local market to boost the product's sales associated with a strong consumer base is driving the demand for the Egyptian paperboard packaging market.
