Market Trends of Morocco Plastic Packaging Films Industry
Polypropylene Film is Expected to Witness Significant Growth
- The government of Morocco is focused on developing action plans to reduce the amount of marine plastic pollution that enters the oceans. It plans to prevent this by adopting a "circular economy" to minimize waste and pollution by extending the life cycle of plastic products and promoting the sharing of materials and products.
- In January 2023, the United Nations Industrial Development Organization (UNIDO) and Chatham House invited experts to submit applications in the open call for a polypropylene plastic packaging and waste policy consultant in the country. This call was part of the project "SWITCH to Circular Economy Value Chains (SWITCH2CE),” founded by the European Union and the Government of Finland. The project aims to keep enterprises within selected value chains to adopt circular economy practices.
- In Morocco, the plastic recycling company Sumilon is expanding operations to meet the increasing global demand for recycled plastics. The company's research revealed that only 1,000-1,200 tonnes of recyclable plastic are collected annually in the country. Sumilon aims to process 90% of this supply within Morocco. Its new production line is expected to begin operations by the end of 2023. The company is strengthening its presence in Morocco and expanding into other African regions.
- Sumilon's processing of 90% of the 1,000-1,200 tonnes of collected plastic each year will notably boost the supply of recycled plastics. With this surge in supply, manufacturers of plastic packaging films can pivot away from virgin plastic materials, thereby cutting production costs and promoting the adoption of recycled materials in packaging solutions.
- The increase in the PPI for the manufacturing industry suggests a stable and potentially growing market environment. For the polypropylene packaging films market in Morocco, this can translate into opportunities for growth driven by higher demand, investments in technology, improved competitiveness, and expanded market reach.
- According to an article published by the High Commission for Planning of Morocco in January 2023, the producer price index (PPI) for the manufacturing industry in Morocco reached 118.5 points in September 2022, showing a slight increase from the previous month's PPI of 118.4 points.
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Food Segment to Show Significant Growth
- Moroccan federations in the agrifood and packaging sectors have agreed to reduce the country's reliance on imports and create 7,500 direct job opportunities by 2060. Affected by the economic crisis and rising raw material prices, Moroccan stakeholders in these industries have united to decrease the MAD 8 billion (USD 0.79 billion) import burden. The price increases have prompted Moroccan agrifood federations, in collaboration with the packaging industry, to raise the sector's integration rate from the current 26% to 39%.
- Reducing imports can help mitigate the impact of fluctuating global raw material prices. Local production can lead to more stable pricing and potentially lower costs for plastic packaging films, making them more attractive to agrifood companies.
- The rise in food service sales can also stimulate the food processing industry, as more processed and pre-packaged foods are needed to meet consumer demand. This growth directly correlates with the increased usage of plastic packaging films to maintain the quality and shelf-life of these products.
- According to an article published in October 2023 by the United States Department of Agriculture (USDA), food service sales reached USD 3,448 million in 2022, an increase from USD 3,275 million in 2020. With higher food service sales, there will likely be a greater need for plastic packaging films to package and preserve food products. This increased demand can drive growth in the Moroccan market for plastic packaging films.
