GCC Packaging Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 4.20 % |
| Market Concentration | Low |
Major Players.webp)
*Disclaimer: Major Players sorted in no particular order |
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GCC Packaging Market Analysis
The GCC Packaging Market was valued at USD 24.26 billion in the previous year and is expected to reach a value of USD 31.30 billion over the forecast period registering a CAGR of 4.2%.
- The rising demand for food packaging is driving the packaging industry in the country. Online orders for fresh fruits, vegetables, meats, poultry, and ready-to-eat meals from restaurants and cafes have increased due to the COVID-19 pandemic. Manufacturers observed that this tendency had moved the industry's attention to upgrading the current product portfolio and developing more environmentally friendly packaging.
- Corrugated packaging is becoming popular as sustainability is critical across the supply chain. Recycling is easy, as the pulp and paper industry already converted the raw materials into the latest generations of containerboards. There has been a rise in accepting corrugated protective formats over polymer-based alternatives, such as (EPS) foams. Sustainable packaging and its financial benefits are also a growing priority for the nation's regulatory and governmental organizations. This factor is also promoting market growFurthermoremore, folding cartons are one of the most versatile and cost-effective formats to package and deliver goods, with diverse possibilitfors in a visually appealing product. Folding carton packaging is one of the most used eco-friendly packaging solutions due to its ability to be produced in many sizes with a small footprint compared to other bulkier packaging options, thus making it feasible for use in almost all end-user industries.
- The recyclable rigid plastic packaging products are made of plastic jars with open tops and independent lids, closures, or covers. Large rigid containers are widely used in supermarkets and shops to transport various products, including foods, products, and pharmaceuticals. Therefore, rigid plastics' durability and ability to be recycled are the main factors driving the industry in the region.
- The demand for flexible packaging products is generally driven by millennial customers, who prefer single-serving and on-the-go food and beverage foodstuffs. Its flexible packaging, durability, portability, and lightweight properties make it a prominent option for packing products. This is expected to drive the demand for flexible packaging in GCC's food and beverage industry.
- Further, metal packaging is one of the most famous modes of packaging in the oil and gas and chemicals industry, in the form of bulk packaging elements, such as drums and cans. Metals also have a high adoption in the FMCG domain for making food and drink cans, aerosol cans, tubes, and containers for confectionery or biscuits.
- The beverages market is witnessing an increased demand for glass containers such as liquor bottles. In addition, the growth in the use of glass bottles for personal care and cosmetics products further augments the development of glass packaging in the country. More and more liquor and cosmetics manufacturers are becoming aware of using recycled materials in their packaging and raising the percentage of recycled glass used in their bottles and cosmetic products. For instance, companies like Hawkins & Brimble UAE are using glass in many of their new products, like moisturizers and beard oil, which is easily recyclable.
- Following the COVID-19 pandemic, major technological trends emerged in packaging: growing e-commerce demand for shippable packaging and the need to integrate technology with packaging is driven by rising demand for packaging materials with improved barrier qualities, product innovation, and increasing supply chain digitization.
- According to the Gulf International Forum, the energy policies of the GCC countries and their continued partnership with Russia dominate the Gulf region's international agenda. From an economic point of view, the war in Ukraine negatively affects trade cooperation between the GCC and Russia. There are also indications that this could slow GDP growth in the GCC. Growth and recovery would likely have a significant impact on the market studied, as the economy is the main driving force for the packaging industry.
GCC Packaging Market Trends
Increase Demand for Packaging in Food and Beverage Sector
- GCC has been registering constant growth in urbanization, which significantly means that more consumers in the country would spend on packaged food due to their busy lifestyles, creating an opportunity for the vendors in the country because food packaging is essential for food preservation.
- The packaged food market has been witnessing growth in the GCC market owing to innovations in food processing techniques and changes in consumer lifestyles, which is anticipated to boost product demand eventually, propelling the growth of flexible plastic in the forecast period. A significant emigrant population drives the need for Western-style food. Supermarkets and hypermarkets may be found almost anywhere and offer a wide variety of food.
- Moreover, the GCC's urbanization growth, economic recovery, and the reopening of the hospitality and tourist industries are all projected to contribute to a moderate increase in food consumption. For instance, according to various research estimations, most GCC nations have an urbanization rate of more than 80%. This would significantly enhance the number of consumers visiting grocery stores, mostly finding food packaged in rigid containers. Further, the food industry in the GCC has remained mostly conservative and grown progressively in recent years due to concerns about the economy and international relations. Such factors would contribute to the rigid plastic packaging market growth.
- The region includes significant countries such as Saudi Arabia, UAE, etc., where the food industry remains one of the most vital sectors in the overall economy. According to FoodexSaudi, the domestic food consumption in the country total is 3,130 calories per person per day. This creates a food sector annual consumption growth rate of 18.5%. Consumption rates are anticipated to expand by 55% through 2023. Such trends would significantly create demand for rigid plastic products in the region.
- Many Soft drinks companies are adopting to use of 100% recyclable elements in their packaging, including glass, metal, and plastic packaging. This trend of environmentally friendly packaging initiatives by beverage companies creates an opportunity for the regions market vendors to offer cans, glass, and other eco-friendly packaging solutions.
- For instance, In October 2022, The Coca-Cola Company Middle East and Global Village, the premier multiracial family destination for culture, shopping, and entertainment in the United Arab Emirates and the surrounding area, made Coca-Cola the official soft drink and water partner for the family destination with the signing of a strategic multi-year partnership, in which all Global Village locations would sell beverages from Coca-Cola Middle East and would create an opportunity for the packaging industries due to their application in storing the liquid.
- The region is also witnessing a rise in the consumption of processed food, fresh produce, and meat sectors. New food growth in the country continues to be fueled by health and wellness trends and the increase in consumers' ethical concerns. Additionally, population growth would be the key driver behind the demand for fresh food during the forecast period. A trend for organically produced foods would increase the presence of sustainable fresh food at premium price points in modern grocery retailers.Due to the surging demand for sustainable packaging in the processed food sector, regional players are opening new outlets to become one-stop shops for all packaging needs.
United Arab Emirates to hold a significant share
- In the UAE, where urbanization is growing at a rate of over 87% and disposable income is rising, there is a growing demand for packaged goods, which opens new opportunities for various packaging materials, thereby contributing to the market growth rate.
- Further, the growing awareness among consumers of sustainable packaging is also among the major factors driving the packaging industry in the country. The growth is majorly attributed to the consumption of non-recyclable plastic packaging. This will result in a greater need for more easily recyclable and sustainable packaging materials, such as paper and board, recycled PET (rPET), and bioplastics, as well as a decrease in secondary packaging.
- The country's food and beverage sector is emerging as one of the largest sectors to adopt rigid plastic packaging products such as food containers and plastic bottles. Moreover, the expansion of the food, beverage, and dairy sector in the country further proliferates the demand for rigid plastic packaging products. For instance, in February 2022, Danish company Arla Foods, one of the leading dairy firms with brands such as Lurpak, Puck, Kraft, and The Three Cows, announced an investment of USD 17 million in new production lines in Saudi Arabia to diversify the product range and further its exports to the Middle East region.
- In addition, the rise of modern retail formats in the country and the availability of a wider variety of frozen ready-to-eat foods has led to a significant increase in demand, attracting time-sensitive consumers looking for convenient groceries. Moreover, the growing influence of Western eating habits among domestic consumers has increased the demand for packaged foods. This is further supported by a high proportion of immigrants, tourists, and young consumers driving demand for ready-to-eat, processed, and frozen foods.
- Companies are continuously working on upgrading their expertise, and investment will help them keep up with the market's rising need for flexible packaging items of the highest caliber. For instance, in March 2023, HexxaFlexible Packaging, a provider of flexible packaging solutions with offices in Ras Al Khaimah, announced the acquisition and installation of two new machines to meet the rising need for effective, flexible packaging in the region.
- Moreover, rising retail focus on dairy products and government initiatives toward encouraging the consumption of dairy products would further drive folding cartons in the UAE dairy products market. According to the report issued by the Business Registration & Licensing (BRL) sector of Dubai's Economy, the Emirate of Dubai has about 583 local and international companies engaged in dairy production and industry such as yogurt, cheese, natural butter, the manufacture and packaging of milk and dairy products, cream and food and dairy counseling.
- Also, UAE is one of the region's most important personal care products markets due to its large population and becoming the local hub for the beauty and skincare industry. Moreover, the rise of beauty encouragement is heightened by social media exposure that encourages word of mouth and is a valuable marketing tool.
- The country is also witnessing significant investments from global companies in the personal ad household care industry. This could augment the need for innovative packaging solutions, thus driving the market demand.
GCC Packaging Industry Overview
The GCC Packaging market is highly fragmented, owing to the presence of various global and local industry players. Vendors in this market participate based on product portfolio, differentiation, and pricing.
- November 2022- HotpackGlobal, a manufacturer of disposable food packaging products, inaugurated its largest production facility in Dubai's National Industrial Park. The company offers a wide range of rigid packaging solutions in the food industry.
- July 2022 -Tetra Pak announced the collaboration with two recycling companies, ObeikanPaper Industries (OPI) and Saudi Top Plastic Factory (STP). With this collaboration, the company aims to increase its collection and recycling of post-consumer cartons. The goal is to recycle all the components of the packages collected in the countries of the Middle East, including the UAE.
GCC Packaging Market Leaders
Tetra Pak International
Mondi PLC
Aptar Group Inc.
Arabian Packaging LLC
Huhtamaki Flexibles UAE (Huhtamaki OYJ)
*Disclaimer: Major Players sorted in no particular order
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GCC Packaging Market News
- March 2023- Al Ain Water, a major water provider in the United Arab Emirates, created a new water container made of recycled polyethylene terephthalate (rPET). Because it requires 75% less energy to produce than virgin PET and emits 75% less carbon dioxide during manufacture, recycled PET has a better ecological balance than glass and single-use aluminum cans.
- September 2022- KeryasPaper Industry LLC announced to set up of their upcoming Kraft liner project in the United Arab Emirates with a capacity of 200,000 Metric Ton Per Annum (MTPA) at an investment of USD 40 million for the pulp and paper manufacturing unit.
- August 2022- Symphony Environmental Solutions Plc, a company that makes plastic products smarter, safer, and more sustainable, announced a production agreement between the firm and EcobatchPlastic Factory in the United Arab Emirates. The production of Ecobatchplastic factory's biodegradable d2w masterbatch is covered under this Agreement, primarily for supplying masterbatches to manufacturers of rigid plastic packaging products in the GCC.
Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Threat of New Entrants
4.2.2 Bargaining Power of Consumers
4.2.3 Bargaining Power of Suppliers
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
4.4 Assessment of the Impact of COVID -19 on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Demand for Environmentally Sustainable Packaging Products and Scope for Printing Innovations
5.1.2 Anticipating Growth in Demand for Packaged Food Sales
5.2 Market Restraints
5.2.1 Increased Costs of Raw Materials
6. MARKET SEGMENTATION
6.1 By Material
6.1.1 Plastic
6.1.2 Metal
6.1.3 Glass
6.1.4 Paper and Paperboard
6.2 By Packaging Type
6.2.1 Rigid
6.2.2 Flexible
6.3 By End-user Industry
6.3.1 Food
6.3.2 Beverage
6.3.3 Pharmaceutical
6.3.4 Personal/Homecare
6.3.5 Other End-user Industries
6.4 By Country
6.4.1 United Arab Emirates
6.4.2 Saudi Arabia
6.4.3 Qatar
6.4.4 Rest of GCC
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Tetra Pak International
7.1.2 Mondi PLC
7.1.3 Najmuddin Packaging & Refilling Industry Llc.
7.1.4 Aptar Group Inc.
7.1.5 Can-pack SA
7.1.6 Rotopacking Materials Ind. Co. LLC
7.1.7 Gulf East Paper and Plastic Industries LLC
7.1.8 Arabian Packaging LLC
7.1.9 Amber Packaging Industries LLC
7.1.10 Huhtamaki Flexibles UAE (Huhtamaki OYJ)
7.1.11 Corys Packaging LLC
7.1.12 Integrated Plastics Packaging LLC
7.1.13 Emirates Printing Press (LLC)
7.1.14 Hotpack Packaging Industries LLC
7.1.15 Napco National
7.1.16 Express Pack Print
7.1.17 Green Packaging Boxes Ind LLC
7.1.18 Tarboosh Packaging Co. LLC
7.1.19 Unipack Containers & Carton Products LLC
7.1.20 Al Rumanah Packaging
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OUTLOOK OF THE MARKET
GCC Packaging Industry Segmentation
The GCC Packaging Market is segmented by Material(Plastic, Metal, Glass, Paper, and Paperboard), Packaging Type (Rigid, Flexible), End-user Industry (Food, Beverage, Pharmaceutical, Personal/Homecare, and Other End-user Industries), and Country (Saudi Arabia, United Arab Emirates, Qatar, and the Rest of GCC). The market sizes and forecasts are provided in terms of value (USD million) for all the segments.
| By Material | |
| Plastic | |
| Metal | |
| Glass | |
| Paper and Paperboard |
| By Packaging Type | |
| Rigid | |
| Flexible |
| By End-user Industry | |
| Food | |
| Beverage | |
| Pharmaceutical | |
| Personal/Homecare | |
| Other End-user Industries |
| By Country | |
| United Arab Emirates | |
| Saudi Arabia | |
| Qatar | |
| Rest of GCC |
Frequently Asked Questions
What is the current GCC Packaging Market size?
The GCC Packaging Market is projected to register a CAGR of 4.20% during the forecast period (2024-2029)
Who are the key players in GCC Packaging Market?
Tetra Pak International, Mondi PLC, Aptar Group Inc. , Arabian Packaging LLC and Huhtamaki Flexibles UAE (Huhtamaki OYJ) are the major companies operating in the GCC Packaging Market.
What years does this GCC Packaging Market cover?
The report covers the GCC Packaging Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the GCC Packaging Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
GCC Packaging Industry Report
Statistics for the 2024 GCC Packaging market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. GCC Packaging analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
