Middle East And Africa Contract Packaging Market Size (2024 - 2029)

Middle East And Africa Contract Packaging Market Analysis

The Middle East And Africa Contract Packaging Market size is estimated at USD 7.32 billion in 2024, and is expected to reach USD 11.58 billion by 2029, growing at a CAGR of 9.38% during the forecast period (2024-2029).

• Bottling and filling services have particularly experienced promising growth in the Middle East and Africa. Owing to the increased demand for food, beverage, and pharmaceutical needs, many businesses have outsourced their packaging for increased safety.

• The Middle East and Africa have emerged as key players in the global e-commerce market, offering substantial potential for growth. Numerous countries in the region and their tier-two cities are actively participating in this trend. This surge is driven by increased accessibility to technology and higher internet penetration rates, amplifying online shopping prospects. According to a report published by mFilterIt in December 2023, retail penetration in the region stands at approximately 11% to 12%, with over 80% of buyers utilizing mobile devices and 70% leveraging social media to engage with sellers, creating opportunities for contract packaging services. To keep up with the growing demand, businesses outsource their packaging end-to-end or standalone services to consumers who prefer to shop online.

• Over the upcoming years, injectables are anticipated to gain a market share that surpasses that of other administration methods, such as oral. As a result, contract packaging demand for injectable solutions is expected to rise, and significant pharmaceutical vendors are anticipated to increase their regional capabilities.

• Many regional brands opt for co-packing instead of building their manufacturing operations, including food safety and the need for financial and business agility. Co-packers play an essential role for ample food and beverage companies in the region that may be unable to justify spending on new equipment or divert production from equipment to produce new and less profitable products.

• However, the growing demand for in-house packaging is anticipated to hinder the market growth for contract packaging. For instance, businesses that use outside contract packagers can extend their distribution cycle by up to seven days, during which their product is less visible. Companies looking to distribute their goods quickly and effectively may find this a barrier.

• With most consumers prefer online shopping channels, companies have been outsourcing their packaging end-to-end or standalone services to meet the growing demand.

Middle East And Africa Contract Packaging Industry Segmentation

The market study of the Middle East and Africa Contract Packaging services tracks the demand for primary, secondary, and tertiary packaging services across industries such as beverages, food, pharmaceuticals, and beauty care, reflecting regional markets' diverse needs. The market study also analyzes pricing strategies for contract packaging services in the region to understand their competitiveness and alignment with industry standards, influencing market dynamics.

The Middle East and Africa Contract Packaging Market is Segmented by service type (primary packaging, secondary packaging, tertiary packaging), by end-user vertical (beverages, food, pharmaceuticals, home and fabric care, beauty care, and other end user verticals), and by country (United Arab Emirates, Saudi Arabia, South Africa, Egypt, Nigeria, Rest of Middle East and Africa). The report offers market forecasts and size in value (USD) for all the above segments.