Market Trends of MEA Rigid Plastic Packaging Industry
Polyethylene Terephthalate (PET) Occupies the Largest Market Share
- PET packaging, known for its lightweight nature, durability, and ease of handling, is extensively used in the food and beverage industry. Due to advancements in packaging technology, PET has made significant inroads into the health and cosmetics industries as well.
- Polyethylene terephthalate (PET) is the leading choice for packaging a variety of beverages, including carbonated soft drinks, fruit juices, and bottled water. PET has a lower carbon footprint than its counterparts and is also lightweight, durable, and safe. Notably, PET is recognized as the world's most recyclable plastic, which can be converted into rPET (recycled PET).
- The United Arab Emirates, Qatar, and Saudi Arabia are home to some of the world's top tourist attractions. As a result, these regions are bustling with various food and beverage establishments, offering exceptional culinary experiences. Many travelers prefer on-the-go food and drinks, leading to a surge in demand for packaged beverages like energy drinks and bottled water.
- Responding to the government's push for eco-friendly packaging, numerous companies are debuting sustainable PET products, potentially boosting the demand for PET items. In March 2023, Al Ain Water garnered attention by rolling out the United Arab Emirates' first-ever rPET bottle, underscoring its dedication to sustainable packaging. Notably, Al Ain Water previously led the Middle East's sustainability efforts with the launch of the region's first 100% plant-based water bottle.
- Krones AG, a leading global manufacturer of packaging and bottling machines, reported that Middle East and Africa is expected to witness a rise in packaged beverage consumption from 118.40 billion liters in 2021 to 127.10 billion liters in 2024. This upward trend is expected to continue further, bolstering the demand for PET bottle manufacturing and closures.
Understand The Key Trends Shaping This Market
Download PDF
The United Arab Emirates (UAE) is Expected to Record Significant Growth
- The country's pharmaceutical industry has witnessed significant growth in the past few years owing to the growing government initiatives and the rise in the production capacity of medicines. This growth is creating considerable growth opportunities for market vendors as different plastic types, such as high-density polyethylene (HDPE), low-density polyethylene (LDPE), and polyethylene terephthalate (PET), are widely used in pharmaceutical packaging. For instance, HDPE is the most common rigid plastic for solid pharmaceutical products, creating moisture-resistant and structurally rigid containers.
- Companies in the United Arab Emirates have increased their production capacity by enhancing manufacturing capacities, driving the demand for medicine packaging, and creating opportunities for rigid plastic packaging market vendors. For instance, Bioventure Healthcare, a United Arab Emirates-based pharmaceutical manufacturing company, planned to double the production capacity of its factory by launching new lines of tablets, capsules, and sachets, which would generate demand for plastic packaging, including blister packaging, in the country.
- As part of Dubai's 2030 Industrial Strategy, the city is seeking to become a global leader in the manufacturing and industrial sectors while at the same time bringing significant investments into all critical sectors. The Dubai Industrial Strategy 2030 envisages further growth of USD 5 billion in the industrial sector by 2030. As the region's cosmetics and beauty industries develop, the need for rigid plastic packaging is growing.
- According to the Department of Economic Development (Dubai), in 2023, e-commerce sales in the United Arab Emirates (UAE) were around USD 577 million. E-commerce businesses often require customized packaging to enhance their brand identity and improve customer experience. Rigid plastic packaging can be efficiently designed, molded, and printed upon, allowing companies to create unique, eye-catching packaging designs.
- Dubai has many international cafeterias and food service restaurants. There is a rise in demand for coffee across the market from a new generation of coffee drinkers who expect better beans, methods, and additives. In January 2023, Peet's Coffee, the business that initiated the craft coffee revolution in the United States, unveiled the opening of its first Middle Eastern branch, an upscale coffee bar in Dubai, to address the growing demand in collaboration with Americana Restaurants. The continuous development of coffee and snack outlets indicates the rising demand for bottles, serving trays, closures for coffee cups, and other rigid plastic products.
Get Analysis on Important Geographic Markets
Download PDF
