Market Trends of Middle East and Africa Plastic Packaging Industry
This section covers the major market trends shaping the MEA Plastic Packaging Market according to our research experts:
Flexible Packaging is Expected to Witness Significant Growth
- The Middle East and African region is witnessing an increase in the demand for pharmaceutical packaging, which is majorly driven by countries such as Saudi Arabia. Healthcare remains a fundamental aspect of the Saudi Arabian government. Increasing flexible plastic packaging solutions demand, such as pouch demand across end-user industries, is driving the market's growth.
- Flexible and rigid plastic packaging dominates the market. Due to the demand for a more ordered structure, the packaging sector is anticipated to experience a significant volume expansion during the projected period. In addition, it is expected that meat and dairy consumption will rise, driving up plastic packaging demand. Thus, the market for flexible plastic packaging is growing due to all these causes.
- Middle Eastern producers of plastic bags and pouches are also anticipated to access lower-cost feedstock and raw materials, including crude oil and polypropylene, thereby driving local manufacturing of plastic pouches. Thus, this is driving the use of flexible plastic packaging in e-commerce.
- Additionally, Saudi Arabia's consumer sector is expanding quickly, presenting many prospects for flexible packaging suppliers. The nation's need for high-end packaging with robust barrier protection is rising. Saudi Arabia accounts maximum packaging demand in the GCC. As a result, these elements are anticipated to propel the growth of the flexible packaging market.
- As per the distribution of polymer production capacity in the Gulf Cooperation Council from 2016 to 2022, shown in data from GPCA statistics, Kuwait has a production capacity share of polymers of about 30% in 2022.
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Saudi Arabia is Expected to Witness Significant Growth
- Saudi Arabia is one of the largest packaging industry markets in the Middle Eastern region. The region has a huge consumer base with a wide range of industrial activities (apart from the oil and gas sector), primarily adding to the country's rapid demand for plastic packaging yearly.
- The global market's lower crude oil price situation has realized the need for a more robust non-oil sector. To strengthen the country's non-oil sector, Saudi Arabia has been implementing multiple initiatives and regulatory reforms, such as the National Industrial Development and Logistics Program (NIDLP), Vision 2030, etc., that may increase industrial production in the region.
- Also, Saudi Arabia is one of the GCC region's largest consumers of plastic products. According to the recent estimates of the GPCA, the country has over 95 kg per capita consumption of plastics, making it the largest consumer of plastic products in the entire GCC. Moreover, the increasing adoption of western culture due to tourism and education activities is anticipated to drive market growth. The current spike in food malls and courts is expected to propel market growth.
- One of the significant locations for flexible packaging usage is Saudi Arabia, where several businesses are growing. Since the nation's manufacturing industry is well-developed, demand for bulk packaging is rising. Furthermore, due to strict environmental restrictions, there is a growing demand for renewable resources.
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