Market Trends of Middle East and Africa Flexible Packaging Industry
This section covers the major market trends shaping the MEA Flexible Packaging Market according to our research experts:
Food and Beverage Industry is Expected to Hold Major Share
- Flexible packaging reduces waste at every stage of its life cycle. It uses less energy and material to manufacture, costs less to transport due to its reduced weight, and contributes less waste to landfills. Food waste reduction is one of its most important contributions.
- Food waste also contributes significantly to greenhouse gas and methane gas emissions at landfills. Food waste can be reduced by general packaging and flexible packaging. Resealable, cook-and-serve packaging, prolonged shelf life, portion control, and mobility are a few benefits of flexible packaging that contribute directly to waste reduction.
- Flexible packaging is being enhanced with new processing technologies that claim to prolong the shelf life and freshness even further without the need for preservatives. The options include vacuum packing, extreme high-pressure processing (HPP), or even replacing oxygen in packaging with another inert gas (modified atmosphere packaging - MAP). These methods are well-suited to flexible packaging.
- Further, In January 2022, Kerry Group announced Middle East expansion continues with the opening of a new facility at its Jeddah location in Saudi Arabia. Kerry, the taste and nutrition firm, has built a new 21,500-square-foot plant in the Kingdom of Saudi Arabia's Jeddah.
- Over the last four years, Kerry invested more than EUR 80 million in the region, and this new facility, which is the company's largest in the Middle East, North Africa, and Turkey (MENAT) region, is one of the most modern and efficient in the world, producing great-tasting, nutritious, and sustainable food ingredients that will be distributed throughout the Middle East.
- Kerry will use its global innovation technologies, which have been adapted to local tastes, to assist food and beverage companies in meeting the growing consumer demand in the region for healthier, tastier, and more sustainable food and beverages, particularly in the snack, meat, and bakery sectors, through the new facility.
- In April 2022, Cargill Foods announced that it is broadening its reach to META(Middle East, Turkey, and Africa). META is a priority for Cargill Turkey to assist dairy manufacturers in better responding to changing consumer demands. Cargill Turkey has invested USD 5 million to enhance its INFUSE by Cargill service by opening a technological application center and a high-tech ingredient blending production unit in Bursa, Orhangazi, Turkey.
Understand The Key Trends Shaping This Market
Download Sample
UAE is Expected to Hold Significant Share During the Forecast Period
- Middle Eastern manufacturers of plastic bags and pouches are expected to access lower-cost feedstock and raw materials, such as crude oil and polypropylene, promoting local manufacturing of plastic pouches. As a result, flexible plastic packaging is becoming more prominent in the e-commerce business.
- As governments and businesses set ambitious targets to combat climate change, eco-friendly packaging solutions are rising. PepsiCo added "Reinvent" to the renowned tagline "Reduce, Reuse, and Recycle" to reflect this. In November 2021, the food and beverage giant established its Greenhouse Accelerator in the Middle East to promote environmental sustainability in the region.
- Many diverse stakeholders are required to achieve a circular economy. PepsiCo is exploring the region's booming startup environment for new ideas. PepsiCo has already begun seeking public-sector support for the accelerator. The UAE Ministry of Climate Change and Environment has partnered with PepsiCo and provides mentors to Greenhouse Accelerator startups.
- Further, the growing government initiatives in the region are bolstering the market growth rate. For instance, in February 2022, The UAE Food & Beverage Business Group and the Ministry of Industry and Advanced Technology (MoIAT) collaborated to develop the Nationals Development Pathway (NDP), a series of initiatives aimed at boosting the local food production ecosystem and promoting food security.
- In February 2022, The UAE Food Bank stated that it had inked multiple strategic cooperation agreements with several firms attending the 27th edition of Gulfood, the largest food, and beverage sourcing exhibition, at the Dubai World Trade Centre (DWTC). According to the agreements, surplus food donated by corporations must adhere to the Bank's norms, while food stored and packaged must meet Dubai Municipality's food safety and hygiene standards. Furthermore, the agreements state that enterprises must send information to the Bank on the quantity and durability of surplus food.
- Adding to these, the country sees a significant demand in the food and beverage sector during the festive season, which further boosts the demand for flexible packaging. As stated by Dubai Statistics Center, the prices of fish and seafood, vegetables, sugar, fruits, bread and cereals, meat, and others significantly rise during the festive season.
- During the holy month of Ramadan in 2022, 289 subsidized food items were available for Emirati families at food centers across Abu Dhabi. Families used the Smart Pass digital platform to purchase subsidized food products and even get them delivered at home. In 2021, UAE Food Bank aimed to set a world record by distributing 50,000 meals in five hours. Such steps catered to the major demand for flexible packaging.
Get Analysis on Important Geographic Markets
Download Sample
