Market Trends of United Arab Emirates Plastic Packaging Industry
Flexible Plastic is Expected to Witness Significant Growth
- The United Arab Emirates flexible plastic 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 increased appetite for food, beverages, and household/personal care products, bolstered by economic growth and rising incomes.
- Agility Logistics, a Kuwait-based firm, reported that in 2023, the UAE ranked as the 28th largest online market globally. The country's e-commerce penetration rates are notably high, especially in categories like bags and pouches.
- The UAE's adoption of modern retail formats and an expanding array of frozen ready-to-eat foods has significantly boosted demand. This trend caters to time-pressed consumers seeking convenient grocery options. Furthermore, a shift toward Western eating habits among locals, bolstered by a rising immigrant, tourist, and young consumer base, is fueling the demand for packaged foods.
- Businesses are ramping up their investments and expertise to meet the escalating demand for top-tier flexible plastic packaging. For instance, in March 2023, Hexxa Flexible Packaging, based in Ras Al Khaimah, unveiled plans to acquire and install two new machines, aligning with the region's surging demand for efficient, flexible packaging solutions.
- The rise in food e-commerce creates a need for innovative packaging solutions that maintain food safety, prolong shelf life, and offer consumer convenience. Plastic packaging companies are expected to invest in developing advanced packaging technologies to address these requirements.
- According to the USDA Foreign Agricultural Service, the retail value of food e-commerce in the United Arab Emirates has continued to grow each year. In 2020, it reached USD 421 million, and by 2023, it had increased to USD 1,072 million.
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The Food Segment is Expected to Hold a Significant Share in the Market
- The need for plastic packaging is anticipated to rise in the UAE due to the rising trend of consumer goods, including food, beverages, and medicines. Demand is growing due to the expanding need for portable, practical packaging options. As the country becomes more urbanized, there is a higher focus on sustainability and convenience in packaging. The general trend to move to flexible packaging is to take advantage of processed food packages and adapt to changing lifestyles.
- The need to provide more eco-friendly packaging grows as packaged food consumption rises. Fortunately, some companies are rising to the challenge of developing innovative and environmentally friendly food packaging to revolutionize the industry and promote environmental protection.
- The region's food industry is rapidly expanding, primarily fueled by a surge in the demand for packaged and processed foods. Millennials, known for their preference for on-the-go and single-serving foods, are propelling the need for flexible food packaging.
- UAE is witnessing a surge in the production of flexible plastic packaging, particularly stand-up pouches. These pouches are designed for a range of snack foods, from chips and cookies to bars and pretzels. The region's affinity for pouches and bags for snacked food packaging is further bolstered by a culture that embraces snacking at any time, contributing significantly to the market's growth.
- According to the Dubai Chamber of Commerce and Industry, organic food sales in the United Arab Emirates reached approximately USD 34 million in 2020 and are projected to increase to USD 52 million in 2025. The rising demand for organic food is expected to drive growth in the packaging industry, as these products often require specialized packaging solutions to maintain freshness and extend shelf life.
