Market Trends of Middle East And Africa Plastic Packaging Films Industry
Polyethylene (PE) is Expected to Witness Significant Growth
- Polyethylene (PE), derived from petroleum polymers, is a highly durable and chemically resistant plastic, making it a cost-effective choice. Its resilience allows it to weather various environmental hazards. PE is primarily segmented into high-density polyethylene (HDPE), low-density polyethylene (LDPE), and linear low-density polyethylene (LLDPE).
- Saudi Basic Industries Cooperation (SABIC), a diversified Saudi manufacturing company active in petrochemicals, chemicals, and industrial polymers, makes LDPE and LLDPE. SABIC LDPE 2005EC was the first commercially proven tubular LDPE grade used for extrusion coating. It can be used in low and high-line speed extrusion coating and lamination processes.
- The availability of high-quality LDPE and LLDPE from SABIC supports the growth of the PE film market in the MEA region by providing durable, chemically resistant, and cost-effective materials. These properties are crucial for applications in harsh environmental conditions typical of the region.
- Increased production can lead to economies of scale, potentially lowering the cost of PE plastic film packaging. This can make PE plastic film packaging more affordable and attractive for manufacturers and consumers within the region.
- For instance, in February 2024, Qatar's Amir Tamim bin Hamad Al Thani launched a new petrochemical complex in Ras Laffan Industrial City, a joint venture between QatarEnergy and Chevron Phillips Chemical Co. LLC. This move marked a pivotal stride in bolstering Qatar's petrochemical output. This project will increase Qatar’s petrochemical production to about 14 million metric tons per annum by 2026.
- The rise in organic food sales directly increases the demand for packaging solutions. PE films are known for their durability, flexibility, and chemical resistance and are extensively used in the food industry as packaging. As the organic food market grows, so will the need for reliable packaging materials. According to the Dubai Chamber of Commerce and Industry, in 2020, organic food sales value in the United Arab Emirates was around USD 34 million; it is expected to reach USD 52 million by 2025.
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The United Arab Emirates is Expected to Show Significant Growth
- The growth of the packaging film market is augmented by the growing demand for high-performance films. Owing to the rising barrier requirements in various end-user industries, improvements, especially in processing technologies, are expected to support the increasing use of packaging films for suitable applications and low-cost production.
- The UAE plastic film packaging market is rapidly expanding, driven by a surge in environmental consciousness, heightened demand for sustainable packaging, the necessity for tailored packaging in the booming e-commerce landscape, and an increasing appetite for food, beverages, and household/personal care products, bolstered by economic growth and rising incomes.
- Over the past decade, plastic consumption in the United Arab Emirates (UAE) has surged, primarily fueled by new product innovations and a material shift within established markets. The "Made in UAE" initiative's standardization has propelled local manufacturers onto the global stage, diminishing the nation's reliance on imports and amplifying its export capabilities. This manufacturing upsurge has, in turn, spurred substantial investments in the plastic film packaging market.
- The pharmaceutical industry is highly regulated, and there are stringent requirements for packaging to ensure product safety and integrity. As the market grows, the need for high-quality, compliant plastic films rises, increasing demand in Saudi Arabia.
- According to the World Health Organization, in 2020, the United Arab Emirates (UAE) spent USD 19.7 billion on healthcare. This is expected to reach USD 30 billion by 2027.
- With the growth of the pharmacy market, there is likely to be more investment in innovative packaging solutions to differentiate products and improve consumer convenience. This can lead to the development of advanced plastic films with better barrier properties, enhanced durability, and improved aesthetics.
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