Market Trends of Morocco Corrugated Board Industry
The Processed Food Segment Holds Major Market Share
- Morocco's food processing industry is a cornerstone of its economy, accounting for 6% of the nation's GDP. Bolstered by top-tier infrastructure, world-class manufacturing facilities, and strategic access to African markets, the industry thrives. With 2,100 registered companies and over 161,671 employees, the industry is a significant employer. Notably, according to the USDA Foreign Agricultural Service, 85% of these companies are small-scale, with fewer than 20 employees.
- In 2022, the sales of processed foods in Morocco hit USD 16 billion, with forecasts pointing to continued robust growth. Key sectors driving this growth include dairy, bakery, sugar, chocolate, vegetable oil, horticulture, and meat processing, alongside soft drinks. According to the US Department of Agriculture, Morocco exported 0.6 million metric tons of sugar as of 2023/2024. The country is also witnessing increased consumption of refined sugar, driving the demand for corrugated board packaging.
- In Morocco, the primary regions driving demand for corrugated packaging in the processed food industry are Grand Casablanca, Souss-Massa, and Doukala-Abda, as these regions house a significant concentration of major processed food manufacturers.
- In Morocco, food products sourced locally are commonly sold directly to retailers and distributors in the nation's wholesale markets. These wholesale hubs, predominantly situated in major urban centers, showcase a diverse array of food items.
- As Morocco expands its capabilities for international food distribution, leveraging its logistical strengths, such as trucking routes to Europe and Africa and the TangerMed Port, becomes increasingly feasible.
- This expansion is set to drive up the demand for corrugated packaging, particularly for secondary and tertiary packaging purposes, consequently boosting the sales of corrugated boards in the country.
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The Fresh and Produce Food Segment to be the Fastest Growing End User
- Morocco plays a significant role as a supplier of fruits and vegetables, particularly to European markets. According to FEPEX (Federación Española de Asociaciones de Productores Exportadores de Frutas, Hortalizas, Flores y Plantas Vivas), the Spanish federation of producers and exporters, Morocco's fresh produce exports to the European Union reached EUR 1.83 billion (USD 1.98 billion) from January 2023 to September 2023, marking a 6% increase from the same period in 2022.
- In addition, the EBRD and FAO, in collaboration with the Moroccan government, are focused on boosting the export of high-value horticultural products to both established and emerging markets. Simultaneously, they are vigilant about the sustainability challenges that come with expanding Morocco's fruit and vegetable value chains. For MY 2023/24, Morocco is set to produce an estimated 950,000 metric tons of tangerines/mandarins, marking a 3% increase from MY 2022/23. Orange production is projected to rise by 5% from the prior year, reaching 820,000 MT, and lemon/lime production is anticipated to hit 40,000 MT.
- With Morocco emerging as a key player in agricultural exports, local producers increasingly turn to modern packaging solutions, notably corrugated packaging. The agricultural sector faces distinct challenges in sourcing top-tier packaging for its fresh produce. From balancing cost-effectiveness with the necessary durability for safe transportation to ensuring products reach their destinations intact, the choice of packaging is paramount.
- Corrugated packaging stands out as an ideal solution, providing a fresh, clean box for each use. This type of packaging is particularly well-suited for fresh food, offering essential features like cushioning, ventilation, strength, moisture resistance, and overall protection, which are crucial for preserving the quality of fresh produce.
- Corrugated packaging for fresh produce is engineered to safeguard product freshness and quality from farm to market. It is a linchpin in the food supply chain, especially for agricultural and produce businesses, offering robust protection during transportation. Corrugated packaging stands out as the most cost-effective and versatile choice for fruit packaging, boasting a diverse range of sizes, shapes, and designs to suit the varied needs of the industry.
- Custom corrugated designs empower growers and companies to leverage branding and marketing effectively. These designs allow boxes and cartons to showcase logos, product details, and company information, enhancing both their marketing and practical utility. Notably, incorporating logos onto corrugated packaging stands out as a cost-effective and impactful strategy. Unlike alternatives such as plastic, which are pricier and less flexible, corrugated packaging offers a budget-friendly, professional means to seamlessly integrate marketing expenses with day-to-day operations.
