Market Trends of Middle East and Africa Plastic Caps and Closures Industry
This section covers the major market trends shaping the MEA Plastic Caps & Closures Market according to our research experts:
Pharmaceutical and Healthcare Plays a Significant Role
- The private sector in the industry is expected to play a major role over the coming years, as Saudi Arabia is looking to invest over USD 66 billion in healthcare infrastructure and boost private sector participation from 40% to 65% by 2030, according to Gulf Cooperation Council (GCC) report.
- In line with the growing contribution from the private sector, Saudi Arabia is looking to partner with major global enterprises to expand its presence. For instance, in February 2021, the country's Ministry of Interior and Switzerland-based pharmaceuticals company Roche Products signed an MOU to develop the Kingdom’s healthcare and life sciences sector. Such developments will drive the market.
- Pharmaceutical packaging involves collecting materials selected carefully to preserve and protect the drug and allow the customer or the patient to use it safely. The main plastic materials cast-off for the manufacture of pharmaceutical containers are polyolefins, type Polyethylene (HDPE or LDPE) and polypropylene (PP); Polyethylene terephthalate (PET); and other copolymers, owing to which the demand of caps and closures increases in this segment.
- As some customers face issues with opening caps and closures by a child or an old-aged person, smart and anti-counterfeiting packaging solutions became the fastest developing requirements, making the technology a perfect fit to further extend the extensive range of closures the pharma sector.
- The downside of using plastic caps and closures with a medicine, or a solution rather than glass or metal, is the possibility of plastic materials interacting with the product using transferring leachables. If that is the case, glass packaging or metal caps and closures may restrain the growth.
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Polyethylene Terephthalate (PET) is Observing Significant Increase
- The majority of soft drinks are packaged in bottles made from polyethylene terephthalate (PET), as PET is good at retaining CO2. PET also found its applications in markets, such as fruit juice packaging and sports drinks, and it is also used in bottles for cooking and salad oils and sauces.
- Furthermore, the rising health and wellness trend, owing to the rising obesity and diabetic populations in various countries, is expected to drive demand for healthy drinks, resulting in increased demand for fruit drinks, energy drinks, and other beverages, influencing the plastic caps and closures market.
- This industry is heavily dependent on inputs for manufacturing. PET, which is used as raw material, has highly fluctuating costs in the market. As the cost of production is dependent on these raw material costs, manufacturers are finding it difficult to maintain constant output.
- Owing to its barrier properties against carbon dioxide (CO2) and oxygen (O2), PET can also be used for food packaging. It is microwave-resistant and is largely used in several food chains.
- Technological breakthroughs in lightweight solutions and an increasing emphasis on sustainability and recycling are some of the trends in PET packaging. Another rising trend is the use of compression technologies in PET manufacture. Many foods and beverage firms are working on boosting recycled PET content for all of their goods between 2020 and 2025 in response to the growing trend of recyclability.
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