MEA Alcoholic Drinks Packaging Market Size

MEA Alcoholic Drinks Packaging Market Analysis

The Middle-East and African alcoholic drinks packaging market is expected to record a CAGR of 3.8% during the forecast period (2022-2027). The increasing consumer spending ability on recreational activities and growing social acceptance of alcoholic drinks have led to a sustained increase in the demand for alcoholic drinks in the region, which influences the packaging market. Packaging has played an essential role since it gives a distinctive appearance to the wide range of offerings by alcoholic drink manufacturers. For instance, Huhtamaki introduced pocket shot pouches and thermoformed packs, which are innovative new concepts that provide the consumer with 'Grab and Go' and user-friendly packaging for alcoholic beverages.

• According to USDA Foreign Agricultural Service, South Africa's wine grape production was projected to increase marginally by 1% to 1.25 million metric tons in 2020. The irrigation facilities are improving with favorable weather conditions and improved yields, and some regions also recovered from the 2016-2018 drought conditions. Wine production was projected to reach 947 million liters in 2020. While the South African wine industry is showing signs of rebounding, it also faces threats from imports of low-value wine suppliers and rising stocks.
• There has been a mixed impact of the COVID-19 pandemic on the alcoholic drinks market in the region. For instance, in South Africa, during the lockdown, transportation and sale of alcoholic drinks were banned entirely within the country, meaning that on-trade sales could not simply move into the off-trade during the period of on-trade closures. However, in the United Arab Emirates, due to the continued availability of the products and supply chain resilience, the market has seen increased purchases in off-trade outlets for home consumption. Sales of non-alcoholic beer, the only category present in alcoholic drinks in Saudi Arabia, declined throughout 2020 as the COVID-19 pandemic led to the government-mandated closure of all on-trade establishments.
• Alcohol-free alternatives of beer, wine, and spirits offer a premium trade-up alternative for consumers in the Middle Eastern markets where alcohol is banned. Such innovations may also suit the market where alcohol consumption is restricted. Saudi Arabia was one of the largest markets for alcohol-free beer consumption globally. Volume consumption of non-alcohol beer almost doubled in the country between 2015 and 2019. It is expected to grow further in the future.
• In the United Arab Emirates (UAE), alcohol growth is majorly contributed by tourism and its vast expatriate population. Emiratis make up 10% of the people, while expatriates account for 90%. According to the World Health Organization, spirits were the most popular alcohol in the United Arab Emirates, with a share of 82%, followed by beer (10%) and wine (8%).
• Furthermore, the United Arab Emirates made new laws and removed punishments for the consumption, sales, and possession of alcohol for those 21 years and over. The easing of alcohol restrictions is part of an overhaul of the country's Islamic personal laws. Relaxing personal regulations aim to "consolidate the UAE's principles of tolerance." This move reflects the country's changing reputation as a hub for international tourism and business. These changes will boost the consumption of alcoholic beverages in the region.