Market Trends of Middle East & Africa Paper Bags Industry
This section covers the major market trends shaping the MEA Paper Bags Market according to our research experts:
Retail Food Outlet is Expected to Address a Major Demand
- Sack kraft paper is mainly used to transport the food products, such as flour, sugar, starch, food additives, processed or dried fruit, eggs, milk, etc. They are mostly used in the form of open mouth or valve sacks, where the sack kraft for food packaging contains two to three layers of paper and is often sometimes combined with a polyethylene (PE) free film tube more inline and coated paper. The popularity of quick-service restaurants in Saudi Arabia among urban youth is catering to the demand for sack craft paper.
- Kraft paper dried fruit bag is an environmentally friendly food packaging bag, and kraft paper dried fruit packaging is very versatile. According to International Nut & Dried Fruit Council, In the marketing year of 2021/2022, Turkey accounted for about 15 percent of dried fruit production worldwide, in the second spot globally.
- In February 2020, Turkey's regulations on plastic food-contact substances and materials were updated to align with the European Union's Plastics Regulation, (EU) No. 10/2011. Moreover, in 2021, Turkey's recycling rate was reported to be just 12%, due to which the Turkish government banned imports of most types of plastic waste into the country. This is expected to increase the adoption of paper bags in the food sector.
- As such online services have become more popular, and they will need useful bags to get food to customers safely. With the increasing trend for online food models in the middle east region, the demand for the paper bag is expected to increase. For instance, recently, London-headquartered European food delivery platform Deliveroo launched in Kuwait. It will enable locals to order food from over 900 restaurants in Kuwait city and have it delivered within 30 minutes.
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South Africa is Anticipated to Cater a Major Market Growth
- The studied market in South Africa is significantly maturing, with major players considering the emerging demand and adoption of kraft paper as a standard alternative to plastic packaging products.
- In the country, regional players are licensing kraft products from global companies to leverage technological innovation and bank upon the increasing demand for the products. For instance, Taurus Packaging, a packaging company based out of South Africa, licensed D Sacks from Billerudkorsnas, a European packaging company dealing with sack kraft products.
- The D-Sacks are used for the packaging of cement weighing 25 kg and can dissolve during the cement mixing process without affecting the strength of the final cement mixture, thereby eliminating the need for recycling of the empty sack. This also aligns with the country's goals of reducing wastage and carbon footprint to decrease the environmental impact.
- According to Global Cement, in South Africa, cement imports grew by 18.7% year-on-year to 1.1 Million ton in the first 11 months of 2021. Imports hit a monthly high of 162,000 ton in November 2021, according to Moneyweb. The majority of the imports came from Vietnam, followed by Pakistan.
- With a production capacity of 20 million tons (as per World Cement Association), the cement industry is expected to become one of the significant economic indicators for the country. Hit by the Covid-19 pandemic, the industry is operating much lesser than its full potential despite the increasing demand. The full realization of the industry's potential is expected to positively impact the studied market with increasing building construction.
- Moreover, it is hoped that government spending will support recovery. In 2021, the government announced its plan to invest ZAR 791.2 billion in public-sector infrastructure spending from 2021 to 2024.
- Furthermore, over the forecast period, white kraft paper is anticipated to gain significant traction due to its readability allowing customers to advertise their products and strengthen the brand image, along with providing cost-effective, sustainable packaging and transporting. In South Africa, Vodacom's plastic-to-paper initiative, which replaces plastic bags with reusable eco-friendly paper bags in Vodacom retail stores, has prevented 2.5 million plastic carrier bags from entering the environment.
- In addition, the pandemic has stunted the food and industrial growth in the region in 2020. With the slow upturn of the economy, the country is envisioned to witness increasing demand in the studied market.
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