Market Trends of Egypt Plastic Packaging Industry
This section covers the major market trends shaping the Egypt Plastic Packaging Market according to our research experts:
Growing Demand for Flexible and Oxo-Degradable Plastics
- Due to the rising demand for flexible plastic packaging in end-use industries, including the food, beverage, cosmetic & personal care, and pharmaceutical sectors, the market is anticipated to expand considerably in the coming years. The expansion of the flexible plastic packaging market is projected to be supported throughout the forecast period by growth in modern retailing, high consumer income, and acceleration in e-commerce activities in Egypt.
- Flexible packaging is in higher demand due to consumers' increasingly hectic lifestyles and growing need for handy items. Flexible plastic packaging uses less energy and resources, so it is less expensive to produce and takes up 35% less space on store shelves, making it more cost-effective than other types of packaging.
- The development of new packaging choices has been driven by dynamic changes in the sector, such as new regulatory measures. Growing concerns regarding using biodegradable polymers for flexible packaging and their implications on the environment have forced manufacturers to develop safe, secure, and eco-friendly packaging options such as oxo-degradable plastics. Manufacturers are looking towards sustainable packaging options that need fewer resources and energy to create a package, demand less money for transportation, and provide a longer shelf life to ease cost pressure and retain the integrity of product packages.
- Additionally, modern retailers increased their share of Egypt's channel distribution significantly. The nation has moved away from grocery merchants and open markets to supermarkets and hypermarkets during the past two years. In the upcoming years, the food industry will increasingly use flexible packaging such as vacuum bags and pouches.
- According to International Trade Center (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.
Understand The Key Trends Shaping This Market
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Food is expected to Hold the Significant Market Share
- One of the significant applications of plastics is in food packaging. Due to their advantageous characteristics, such as lightweight and low cost, rigid plastic packaging is increasingly in demand from the food sector. It is replacing traditional materials like paperboard, metals, and glass in the country.
- Flexible packaging is mainly used for dairy, snacks, and confectionery items. Flexible packaging in the country is now used more frequently for meat, poultry, fruits, and vegetables owing to advancements in packaging technology, such as controlled environments and high-pressure processing.
- Further, the demand for frozen food packaging is also increasing in Egypt. In terms of packing shape, frozen goods, especially ice creams, need flexibility. As a result, there is a demand for flexible plastic packaging options because of these products. The categories of fresh fruits, health bars, salads, and other fresh produce are particularly popular with health-conscious consumers who want organic food.
- As per the United States Department of Agriculture Egypt report 2022, the retail food industry expanded by roughly 3.4% from 2020 to 2021. Compared to 2020, the industry saw sales of USD 30.2 billion increase to USD 31.3 billion in 2021. The 4,041 contemporary retail outlets, including supermarkets, hypermarkets, and convenience stores, account for about 27.1 percent of total sales. Traditional grocery stores have 116,578 locations, accounting for 72.9% of total sales. The majority of retail stores in Egypt are still small, traditional grocers.
- Further, as per GATS, TDM & FAS Cairo Research data, beef, and beef products, dairy goods, spices, fresh fruit, tea, chocolate and cocoa products, tree nuts, soups and other food preparations, fresh vegetables, chicken meat, and products were the main consumer-oriented imports of Egypt in 2021. The top suppliers were India with USD 692 million (18%), Brazil with USD 324 million (9%), the United States with USD 243 million (6%), Kenya with USD 202 million (5%), the Netherlands with USD 163 million (4%), and Italy with USD 159 million (4%).
- Furthermore, the foreign footprints in Egypt are also creating enormous opportunities for the Studied market. For example, Foodies, which specializes in providing cloud-based all-in-one restaurant management solutions, estimated the Egyptian restaurant market to be worth USD 17 billion annually in 2021. In 2021, the company planned to present its management solutions to 2,000 restaurants in Egypt.
