Middle East has one of the highest GDP per capita, so the consumers have more disposable income to spend on e-commerce retail, luxury retail and retail in stores. With the increase in sales of products, the packaging market will be growing to cater to the needs of both the consumers and retailers. Countries like Qatar have GDP per capita more than USD 100,000 so as the purchasing power increases so does the packaging market. The key determining factors of packaging are varying consumer trends, light weight of the products, different sizes, shelf life and ease of recycling. Flexible packaging helps in addressing these concerns and that is why it is being widely adopted for several products across different industries. Increasing demand for packaged foods is also one of the major growth drivers of this industry.
The Middle East and Africa flexible packaging market is expected to grow from USD 8.55 billion in 2016 to USD 12.12 billion by the end of 2021 at a CAGR of 5.99%. The UAE leads the market in terms of revenue followed by South Africa. Israel is estimated to register the highest growth. This growth is attributed to the growing economies of the region and the relatively low inflation. This gives the consumer more money in hand to spend on products thereby improving the overall lifestyle of the population.
The concerns for this area are that the region is prone to be unstable. This instability caused due to extremism and terrorism affects the companies investing in the market and also spooks the future investors. With the USA providing a lot of support to countries from this region these fears should be allayed. As sanctions against Iran are being lifted gradually this region will grow and prosper. Africa is on the rise. Economy, for the most part, is booming given the relatively stable political scenario in the region. Africa’s GDP growth from 4.7% in 2013 to 5.2% in 2014 and the FDI growth of 16%, reaching USD 43 billion in 2014, shows a positive economic trend. Countries across Africa, from mineral-rich Sierra Leone and Congo to agrarian economies like Ethiopia and Rwanda, have shown growth across multiple macro-economic parameters.
With inflation in the region going down from 10.7% in 2013 to 6.2% in 2014, domestic spending is on the rise. Retail, from e-commerce to mom and pop stores, has racked up the biggest gains. Packaging in Africa is fast catching up to meet the growing needs of a continent that is booming with investment from a vast number of foreign players. Given the relative lack of proper infrastructure, the vast distances that goods need to be transported over land from a few international ports make flexible packaging a necessity.
Food and industrial goods imports into Africa make up a significant share of the flexible packaging market in the region. Rising demand for packaged foods, a need to keep costs down and investments in food processing are propelling the growth of flexible packaging in the region. Nigeria is expected to have the highest growth in terms of adoption and investment of flexible packaging, with the rest of Africa showing single-digit growth for the market. While missing and underdeveloped supply chains remain an obstacle for rapid growth in demand for flexible packaging in the region, the opportunities for vertical growth in manufacturing and food processing are tremendous. Widely spread population with minimal densities could pose a challenge in the near term, although investments from countries like China are facilitating the creation of new economic hubs with much higher population densities and better standards of living.
Some of the key vendors mentioned in the report are Amcor, Mondi Group, SIT Group, Wipak Group and Automated Packaging Systems. Some other companies which are serving the market in their own innovative way, mentioned in the report are Rollprint Packaging Products, Paharpur 3P and PERUPLAST S.A.
- Longer shelf life and changing lifestyle of people
- New innovative products
- Increasing disposable income across different geographies
- Concerns about the environment and recycling
Reasons to buy this report
- The report gives complete market insights, the driving forces of the market, the challenges market faces, about different flexible packaging technologies and their applications.
- It gives market trends by type of flexible packaging technology and by applications.
- A complete market breakdown has been done by different countries along with the country level segmentation to give a detailed picture of the market in that particular region.
- The report also gives information on major vendors of flexible packaging products, their existing share in the market, strategies they adopt along with the major products, financials, recent developments and profile of these vendors.
Who is this report useful to?
- Vendors who are into manufacturing of these products as they can get an overview of what competitors are doing and also which markets they can look forward to expanding their operations.
- Processed food suppliers in need of better understanding of different technologies and products
- Investors who are willing to invest in this market.
- Consultants who can have readymade analysis to guide their clients.
- Anyone who wants to know more about this market.
1.1 Key deliverables of the study
1.2 Study assumptions
1.3 Key findings
1.4 Market definition
2. Research methodology
3. Executive summary
4. Market dynamics
4.2 Factors driving the market
4.3 Factors restraining the market
4.4 Current opportunities in the market
4.5 Industry value chain analysis
4.6 Porter’s five forces analysis
4.6.1 Industry competition
4.6.2 Potential of new entrants
4.6.3 Power of suppliers
4.6.4 Power of customers
4.6.5 Threat of substitute products
4.7 Industry policies
5. Technology Snapshot
6. Market segmentation
6.1 By Product Type
6.1.1 Stand-up pouches
6.1.2 Flat pouches
6.1.3 Retort pouches
6.1.4 Gusseted bags
6.1.5 Wicketed Bags
6.2 By Printing Technology
6.3 By Packaging Material
6.3.2 Flexible foams
6.3.3 Paper products
6.3.4 Metallic packaging
6.3.5 Cloth packaging
6.4 By End-User Industry
6.4.5 Personal care
6.4.6 Household care
6.5 By Country
6.5.1 Saudi Arabia
6.5.2 United Arab Emirates
6.5.3 South Africa
7. Vendor market share analysis
8. Competitive intelligence- Company profiles
8.2 Mondi Group
8.3 SIT Group
8.4 Wipak Group
8.5 Automated Packaging Systems
8.6 Fres-co System USA
8.7 Glenroy Inc.
8.8 Innovia Films
8.9 OxySense, Inc.
8.10 Phoenix Closures
8.11 Printpack, Inc.
8.12 Belmark, Inc.
8.13 JL Packaging Corporation
8.14 Oracle Packaging
8.15 Prolamina Corporation
8.16 The Challengers
8.16.1 Rollprint Packaging Products, Inc.
8.16.2 Paharpur 3P
8.16.3 PERUPLAST S.A.
8.16.4 CL&D Graphics, Inc.
8.16.5 Clear Lam Packaging, Inc.
9. Investment analysis
9.1 Recent mergers and acquisitions
9.2 Investment outlook
10. Future of flexible packaging