Market Trends of MEA Packaging Automation Industry
This section covers the major market trends shaping the MEA Packaging Automation Market according to our research experts:
Demand for Food and Beverage Packaging on Rise
The Middle East and Africa are regions where food is emphasized with cultural and religious reasons for which technology is particularly important in primary and secondary packaging solutions production.
- According to Gulfood Manufacturing, a food and beverage processing, and packaging company, the volume of food trade has increased by 21%; despite the COVID-19 pandemic, the country achieved a 3% growth in food and beverage exports.
- The packaging machinery industry is rapidly shifting to technology to develop innovative solutions for future-ready packaging and advanced processing, manufacturing, and supply chain models. For instance, Jacob White supplies cartoning machines to Gulf Cooperation Council (GCC) area, working closely with clients to deliver and meet their requirements.
- With the increase in the food sector every year with new restaurants, delivery apps, and food chains across the region, the manufacturers and distributors require robust and reliable machinery for packaging trays, bags, and more. The packaging for frozen food is also considered, and unique challenges are met by the companies to meet the customer requirements.
- Companies are also concentrating on expanding their business across the regions and improving their products. For instance, in May 2021, Huhtamaki established a plant for its fiber packaging in South Africa. This new facility will allow it to better serve the growing textile packaging sector and future demand for sustainable packaging. This also greatly strengthens our position in this area.
- The increasing adoption of automation in the packaging industry will not only improve the efficiency of packaging lines but will also pave the way for the digital future of packaging machines over the forecast period, opening up new opportunities.
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Saudi Arabia to hold highest market share
Saudi Arabia holds the highest market share in the packaging industry in various industries such as food, beverage, pharmaceutical, and more. The major player in this region is investing in the research and the development of new product innovations.
- The regional online food delivery and q-commerce platform Talabat in July 2021 launched a sustainable packaging program to reduce plastic waste and carbon emissions across the region, starting with pilot operations in the UAE and Qatar. This program will be available for restaurant partners and vendors to be adopted.
- According to research conducted by Delivery Hero, consumers wanted a more sustainable delivery ecosystem. 92% of UAE customers considered ordering from restaurants that offer organic packaging, and 2/3 of UAE customers order more from restaurants that offer organic packaging.
- New rules and regulations have been introduced in the plastic packaging by Saudi Standards, Metrology and Quality Organization (SASO), such as limiting the application of the technical regulations for biodegradable plastics to all products listed only in the first stage of the Regulation. This includes plastics that are once used, such as woven barley bags. The implementation of the second and third phases of the regulation has therefore been suspended.
- The government industrial packaging printing press makes investments in Saudi Arabia, an order of two new presses was placed in Riyadh. According to a survey conducted as a call for smart packaging for pharmaceutical products, about 95% said they were involved in storing medicines at home. Among them, 80.9% reported first aid and additional treatment, and 43.2% answered that they were treating chronic diseases. A little over 35% said that they store drugs because they don't know how to throw them away.
- Ball Corporation also adopts to refining and improving the technology that is suitable for the consumers and develops products such as new metal alloy that adds recyclable material to the products reducing its weight and is innovating new beverage products in the region.
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