Middle East and Africa Protective Packaging Market - Growth, Trends, Forecasts (2020 - 2025)
The Middle East and Africa Protective Packaging Market is segmented by Material Type (Plastics, Paper and Paperboard), Product Type (Rigid, Flexible, Foam Based), End-user Vertical (Food and Beverage, Pharmaceutical, Consumer Electronics, Beauty and Homecare), and Country.
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Scope of the report
Key Market Trends
TABLE OF CONTENTS
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The Middle East and Africa protective packaging market is expected to register a CAGR of 4.6% during the forecast period 2020 - 2025. Protective packaging is one of the significant packaging techniques used for packaging of various ends user industry products, such as consumer electronics, pharmaceutical, and automotive, among others that safeguard and shield core product from damages during transportation or storage.
The Middle East & Africa region will witness a growth in the e-commerce market during the forecast period. The increasing internet, smartphone, and social media penetration in the region, coupled with lower prices, a wide range of product selection, and a more convenient method of buying than instore, is augmenting the growth. According to internet world statistics, the penetration of the internet in the middle east in 2019 accounted for 67.2% as compared to the global internet penetration rate.
Moreover, according to go gulf, estimated retail e-commerce sales in MENA will account for USD 49 billion in 2021 from USD 18.67 billion in 2016. The e-commerce penetration as a percentage of total retail sales in the MENA region accounted for 1.9 %, in GCC countries 3%, in UAE 4%, in Saudi Arabia 3.8%, and Egypt 2.5%. Also, electronics, fashion, beauty, and grocery constitute 80% of the market. Such instances majorly relate to the adoption of protective packaging for shipping purposes.
The proper selection of protective packaging solutions primarily depends on the type of product and industry where it is being used for packaging and may require the selection of products that are suitable for anti-static packaging needs. Selection factors may include product type, material, dimensional specifications, and other features. Specific to the market demand, the new-age protective packaging materials have led to the market vendors pushing for sustainability and offering products that are reusable and recyclable.
In the present market scenario, protective packaging vendors are pulling up their sleeves to create a positive experience for their end-users. Customer retention for a business is beneficial, as it helps to gain the trust of prospective and potential customers.
Further, the protective packaging market is expected to witness significant growth post-covid-19 pandemic as people would continue to prefer online mode of delivery for the products, and the e-commerce market is expected to grow significantly, which would drive the studied market for next year and a half.
Scope of the report
Protective packaging are materials that are built to protect and add buffer to a product from potential harm or damages/destruction while shipping or warehousing. Protective packaging can be used either as a primary packaging or secondary packaging material depending upon the products’ end-use application. The scope of the market is comprehensive and is limited to Middle East and Africa.
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Key Market Trends
Beauty and Homecare Industry to Drive the Market Growth
Protective mailers are widely used for one or two light cosmetic product shipping. The recycled bubble mailers and recycled padded mailers are catering to the adoption of protective packaging in the cosmetics sector. Both offer the cushioning required to protect personal care items in transit, and also both are 100% recyclable.
If the orders tend to be larger, with a variety of items with fragile goods, it is recommended to use 100% recycled shipping corrugated protective boxes (either a tab locking or literature mailer style). Shipping boxes are of a study structure and can be custom-sized. One can get a single box size that can accommodate all the orders or opt for several different sizes, so different boxes are used for small, mid-sized, and large orders.
When shipping in corrugated boxes, it is necessary to utilize void fill to keep products in place and protected in your box. GreenWrap, corrugated bubble, and packaging paper would all be effective solutions for protective void fill.
ThermoPod mailer envelopes and ThermoKeeper insulated box liners provide superior thermal protection for extended time frame shipping of cosmetics and other temperature-sensitive personal care products.
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United Arab Emirates Holds Significant Market Share
The e-commerce firms, such as Noon, Souq, Ounass, and Nashimi enacted a range of initiatives, aside from discounted prices, to improve the range of products offered and delivery options. The same same-day and next day delivery services offered by several e-commerce players in the country have attracted several consumers to shop online. Moreover, with high mobile and internet penetration and highest expenditure by online shoppers with USD 1,648 (average purchasing power/ year), the country provided an excellent growth platform for the e-commerce industry/internet retail.
In the United Arab Emirates, Bubble wrap by far is one of the most effective packaging materials that are being used. Al Thika Packaging is the exclusive distributor of packaging machines for the player Storopack in the Middle East. It also provides machinery for the production of bubble wrap, air pillows, air cushions for void fill, wrapping, and block and brace. Its AIRplus airbag packaging is the viable option for fast, lightweight void fill.
This type of block and brace packaging gently holds the products in place during transport. For protective wrapping, Storopack offers AIRplus Cushion Film and AIRplus Bubble for an on-demand bubble style wrap in the region.Further, NPPF is one of the biggest EPS (Expanded Polystyrene) manufacturers in the Middle East, providing protective packaging foam solutions for various end-user industries. However, in the United Arab Emirates, sustainability is emerging as a major trend in the UAE packaging industry.
Corrugated board is proving popular in packaging as sustainability becomes a more important issue across the value chain. It is easy to recycle, and the pulp and paper industry is already adept at converting these into new generations of containerboard. These qualities mean there has been a rise in the popularity of corrugated protective formats over polymer-based alternatives, such as expanded polystyrene (EPS) foams.
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The Middle East and Africa protective packaging market is moderately fragmented and consists of various vendors providing these products and solutions. Players in the market focus on product innovations and strategic initiatives such as mergers and acquisitions and partnerships to capture the market share. Some of the recent developments in the market are:
September 2020 - Storopack introduced FOAMplus 5504RC, the first polyurethane foam with renewable content. It weighs just 0.30 pounds per cubic foot, where the sustainable foam consists partly of sugar-based material obtained from renewable sources and satisfy the most rigorous cushioning demands.
August 2020 - Sealed Air Corporation announced that it had signed a collaboration agreement with Plastic Energy. Plastic Energy has a technology platform that enables the diversion of waste plastic away from landfills, with the goal of processing 300,000 metric ton of plastic by 2025.