Market Trends of MENA Thermoform Plastic Packaging Industry
This section covers the major market trends shaping the MENA Thermoform Plastic Packaging Market according to our research experts:
Food and Beverage Sector Will Experience Significant Growth
- Food consumption in the United Arab Emirates is growing due to the influx of tourists, and growth in the overall population. Food consumption in the Gulf Cooperation Council (GCC) as a whole is expected to expand at a compound annual growth rate (CAGR) of 4.2% or 48.1 million metric tons in 2016 to 59.2 million metric tons in 2021. Additionally, rising income has led to changing and increasingly globalized diets, as well as sedentary lifestyles that have resulted in a rise in the consumption of processed food and, are driving the growth of the thermoform packaging market.
- The United Arab Emirates has a favorable environment for the food & beverage business according to the BMI Risk/Reward Index. It has the first rank in the region and fourth globally in food and beverage investment environment attractiveness. According to the report, the import net of re-exports was around AED 43 billion, with a domestic consumption size of AED 112 billion. 62% of the domestic food and beverage needs are derived from the local manufacturing industry that accounts for AED 69 billion. And so, the food and beverage sector is by far one of the most important manufacturing sectors and many companies have expanded and developed over the years.
- Urbanization increased employment opportunity, and affordability in Nigeria has increased the demand for fast-food restaurants and processed food. People are switching from unpackaged, unbranded products to packaged products as the urban population reaches 51%. Consumers are purchasing packaged food products that are quick to prepare or ready to consume and propelling the growth of the thermoform plastic packaging market.
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Pharmaceutical Industry is Expected to Hold Significant Market
- The pharmaceutical sector in the Middle East and North Africa (MENA) has experienced remarkable growth over the past years and is estimated to reach around USD 60 billion by 2025, with USD 1.2 billion allocated for the healthcare system in the budget 2019. A rapid increase in population (aging), affordable access to the health care system, increased demand for over the counter drugs, and other general health and hygiene consumables has attracted the attention of multinational pharma companies to augment the investment in MENA countries.
- For instance, Emerson has invested USD 25 million and build a new technology and innovation center in Saudi Arabia to support the objectives of Saudi Vision 2030. It is the leading automation partner of pharmaceutical manufacturers globally to support their facilities to achieve top performance by world-class technology solutions.
- However, government policy is also encouraging local manufacturing of drugs in African countries as imports currently outweigh exports, and local manufacturing only covers basic medicines. However, the rise of non-communicable diseases and healthcare costs are likely to attract foreign investment as well as the further development of domestic manufacturing capabilities. Additionally, Egypt, Israel, and Turkey, the vibrant domestic pharmaceutical market represents burgeoning local pharma production due to the protectionist regime that helps local players to flourish. It is expected to boost the growth of the pharmaceutical market and, in turn, thermoform plastic packaging in the healthcare sector.
- COVID-19 has indirectly hampered the growth of the thermoform packaging market in most of the sectors but has fueled in the healthcare sector as most of the pharmaceutical companies are developing a vaccine and testing kits which use thermoform packaging to be lightweight, resistant and cost-effective. For instance, Scientists in Qatar are teaming up across institutions to tackle the pandemic on different levels, such as studying virus-host genomic interactions, creating patient biorepositories, setting up clinical trials, and connecting with global consortia that are expected to fuel the development of COVID-19 vaccine.
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