Middle East And Africa Pulp And Paper Industry Size and Share
Middle East And Africa Pulp And Paper Industry Analysis by Mordor Intelligence
The Middle East and Africa pulp and paper market size stood at USD 17.41 billion in 2025 and is projected to reach USD 20.71 billion by 2030, registering a 3.54% CAGR. Local production is expanding as sovereign wealth funds back integrated mills, reducing reliance on imports and shortening lead times. Corrugated packaging demand from e-commerce hubs in Dubai and Riyadh, bans on single-use plastics, and rising tissue consumption in GCC cities are the primary growth engines. Investments in recycled containerboard and dissolving pulp illustrate a shift toward value-added grades, while trials with date-palm residues hint at future fiber security. Near-term challenges include volatile wood-chip prices, Red Sea freight surcharges, and water-scarcity compliance costs that raise capital requirements for new mills.
Key Report Takeaways
- By grade, bleached chemical pulp led with 41.43% of the Middle East and Africa pulp and paper market share in 2024; dissolving wood pulp is poised for a 7.21% CAGR through 2030.
- By product type, packaging papers accounted for 43.81% of the Middle East and Africa pulp and paper market size in 2024, while specialty papers are forecast to grow at 6.64% CAGR.
- By application, tissue held 28.53% share of the Middle East and Africa pulp and paper market size in 2024 and is advancing at a 5.9% CAGR.
- By end user, food and beverage packaging captured 34.22% share in 2024; industrial and specialty applications show the highest trajectory with a 7.15% CAGR to 2030.
- By geography, Saudi Arabia dominated with 18.52% share in 2024, whereas the United Arab Emirates is expanding at an 8.70% CAGR.
Middle East And Africa Pulp And Paper Industry Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Growing e-commerce packaging demand | +0.80% | GCC, South Africa, Egypt | Medium term (2-4 years) |
| Rising urban middle-class consumption of tissue products | +0.60% | Saudi Arabia, UAE, Turkey, South Africa | Long term (≥ 4 years) |
| Government bans on single-use plastics | +0.50% | GCC, select African markets | Short term (≤ 2 years) |
| Surge in GCC investment into integrated capacity | +0.40% | Saudi Arabia, UAE, Qatar | Medium term (2-4 years) |
| Date-palm agri-residue trials | +0.20% | Middle East, North Africa | Long term (≥ 4 years) |
| Maritime free-zone circular-economy incentives | +0.10% | UAE, Oman, Egypt | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
Growing e-commerce packaging demand
E-commerce volumes in the MENA region have boosted containerboard demand, particularly from logistics corridors connecting Jebel Ali with Riyadh. Al Dhafra Paper upgraded forming sections with Valmet dewatering elements in 2024 to satisfy tighter box-grade specifications. MEPCO’s 450,000-tonne recycled containerboard line in Jeddah will further localize supply, cutting import exposure and lead times.[1]PaperFIRST Editorial, “MEPCO commissions Voith…,” paperfirst.info Customization requirements in specialty packs favor regional converters, while cross-border shipping within the GCC union increases box usage during transshipment.
Rising urban middle-class consumption of tissue products
Urbanization rates above 80% in GCC states are pushing tissue usage toward European per-capita levels. Crown Paper Mill’s 70,000-tonne greenfield site in Dammam and Juthor’s sixth line underline investor confidence. More than 40 regional mills now supply premium facial and kitchen towel grades, prompting flexible machines that can quickly switch furnishes to match volatile retail demand.
Government bans on single-use plastics shifting demand to paper-based substitutes
UAE retail chains replaced plastic bags with paper carriers in 2024, spurring fresh demand for food-service board compliant with global migration limits. Saudi Arabia has embedded similar targets within its circular-economy roadmap, accelerating investments in coaters for grease-resistant wraps. Local mills capitalize on faster artwork changeovers and shorter delivery cycles than Asian exporters.
Surge in GCC investment into integrated pulp and paper capacity
The Public Investment Fund and free-zone authorities offer subsidized utilities and tax incentives for integrated complexes. The strategy locks in fiber streams, stabilizes cash margins against imported pulp swings, and positions regional champions for export to Africa and Southern Europe.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Volatile wood-chip import prices | -0.7% | Mills reliant on imports | Short term (≤ 2 years) |
| Chronic water stress in MENA | -0.4% | Arid zones | Long term (≥ 4 years) |
| Port congestion and Red Sea security surcharges | -0.3% | Import-dependent markets | Short term (≤ 2 years) |
| Currency depreciation in key African markets | -0.2% | Sub-Saharan Africa, Egypt | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
Volatile wood-chip import prices
Hardwood chip costs increased by 24% over two years, squeezing mills that lack captive forestry. United States exports to the region totaled USD 34.93 million in H1 2024, underscoring dependency. Companies hedge with multi-origin supply but hold thicker inventories, tying up working capital. Parallel efforts to boost recycled furnish and agro-fiber blends are rising.
Chronic water stress in MENA limiting mill permitting
Average pulping draws 15–20 m³ of water per tonne. Gulf regulators now demand closed-loop circuits before granting expansions, making reverse-osmosis and zero-liquid-discharge plants standard capex. Mills with superior reuse ratios secure faster approvals, creating barriers for late entrants.
Segment Analysis
By Grade: Chemical pulp supports integration strategy
Bleached Chemical Pulp captured 41.43% of the Middle East and Africa pulp and paper market share in 2024, anchored by wide acceptance across tissue, cartonboard, and fine paper. The grade aligns with export standards required by European buyers, allowing regional mills to fill supply gaps during high freight seasons. Dissolving Wood Pulp is growing at 7.21% CAGR as viscose producers in Egypt and Turkey secure closer cellulose sources to hedge against Asian logistics risks.
Commodity unbleached kraft meets corrugated board needs but contends with recycled liners when OCC prices dip. Mechanical pulp’s footprint stays narrow due to higher power tariffs and limited newsprint demand. Trials with palm residue show promise but require adjustments in cooking and bleaching to manage silica and ash. Chemical pulp thus remains the anchor for integrated complexes positioning for regional self-sufficiency.
Note: Segment shares of all individual segments available upon report purchase
By Application: Tissue drives consumer shift
The tissue segment accounted for 28.53% of the Middle East and Africa pulp and paper market size in 2024. Premium embossed kitchen towel varieties attract higher retail margins, encouraging mills to install wider hoods and higher operating speeds, such as Valmet’s Advantage DCT 200 line for Crown Paper Mill.[2]Valmet Corporation, “Valmet to deliver dewatering elements…,” valmet.com Specialty papers, ranging from release liners to thermal labels, are expected to grow at an 8.44% CAGR, driven by demand from electronics and food packaging suppliers seeking traceability features.
Printing and writing grades decline as governments digitize services, yet textbook volumes in North Africa buffer the drop. Newsprint machines are being rebuilt into fluting assets, mirroring global conversions. Cartonboard growth is driven by the penetration of frozen food, leading to the installation of high-stiffness multilayer formers.
By End-User Industry: Food packaging anchors volumes
Food and Beverage Packaging held a 34.22% share in 2024, as restaurant chains, hypermarkets, and rising chilled ready-meal sales lifted board demand. Mills invests in fluorochemical-free barriers and water-resistant coatings to comply with EU import regulations. Industrial and Specialty Applications are expected to top growth at a 7.15% CAGR, supported by filtration media and insulation wrap for expanding construction pipelines.
Consumer goods packaging leverages branding to differentiate in cluttered retail aisles, favoring high-gloss and tactile finishes. Hygiene product substrates in Nigeria and Kenya align with population growth curves, although currency fluctuations can impact input costs.
By Product Type: Packaging papers dominate
Packaging Papers delivered a 43.81% share in 2024, energized by online retail and plastic substitution laws. MEPCO’s recycled linerboard investment marks a shift towards circular loops, with OCC collection rates now exceeding 70% in the UAE free zones. Specialty Papers achieves a 6.64% CAGR by leveraging security documents, conductive substrates, and moldable fiber trays that align with sustainability pledges.
Graphic papers keep a niche for catalog and luxury inserts in affluent malls, while tissue builds private-label momentum in supermarket chains. Product diversification thus balances cyclical exposure in the commodity kraft sector.
Note: Segment shares of all individual segments available upon report purchase
By Process Technology: Chemical pulping retains edge
Chemical pulping held a 46.72% share in 2024, chosen for its strength properties and compatibility with chlorine-free bleaching sequences. Integrated mills with on-site recovery boilers reduce caustic purchases and lower their energy footprints. Recycled fiber processing registers 5.65% CAGR as OCC trade lanes normalize and governments subsidize curbside collection.
Mechanical pulping is limited to niche boards where bulk and opacity are more important than strength. Continuous digester upgrades focus on oxygen delignification to meet increasingly stringent effluent standards.
Geography Analysis
Saudi Arabia contributed 18.52% of regional revenue in 2024, aided by Vision 2030 incentives that offset land and utility costs. Its Red Sea location eases the import of eucalyptus chips from Mozambique and the export of kraft liner to Mediterranean buyers. Expansion announcements such as Crown Paper Mill’s Jubail complex further cement the Kingdom’s leadership.
The United Arab Emirates posts the fastest climb at an 8.70% CAGR through 2030. Free-zone rules waive customs on OCC, spurring converters to back-integrate into recycled papers. Dubai’s role as an air-cargo pivot drives demand for lightweight but high-crush corrugated grades, while Abu Dhabi’s industrial strategy bundles utilities and permitting to lure foreign machinery suppliers.
South Africa anchors Sub-Saharan output with forestry reserves and deep-sea ports. Investments like Bellmer’s TurboPress XL at Mpact Felixton enhance fluting dryness and reduce steam load. Nigeria and Kenya still rely on imports but fast-growing consumer populations make them prime export targets for GCC mills, especially in tissue and food-grade board.
Competitive Landscape
The Middle East and Africa pulp and paper market features a mid-tier concentration where global majors coexist with domestic champions. International Paper’s pending DS Smith acquisition widens its box portfolio, while Sappi upgrades dissolving pulp baling at Saiccor to lift export throughput.
Regional actors, such as MEPCO, Al Dhafra Paper, and Crown Paper Mill, integrate upstream into the pulping process to control fiber volatility. Financial muscle from sovereign funds compresses payback periods, allowing them to adopt the latest web-based presses and water-reuse systems.
White space encompasses specialty papers, molded fiber trays, and palm-based pulps, where technology patents are increasing, as demonstrated by ANDRITZ’s dry-molded fiber pilot line.[3]Sustainable Packaging MEA, “ANDRITZ expands capabilities…,” sustainabilitymea.com Environmental compliance, particularly in water recycling, is a key differentiator that shapes investment decisions.
Middle East And Africa Pulp And Paper Market Leaders
-
Smurfit WestRock
-
International Paper Company
-
Lions Gate Paper & Pulp LLC
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Sappi Limited
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Billerud AB
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- September 2025: Paper Middle East 17th International Exhibition convened at Egypt International Exhibition Center in New Cairo, positioning as the premier exhibition in Africa and MENA for pulp, paper, tissue, paperboard and converting industries with support from Egyptian governmental departments and nationwide trade associations Egypt Business.
- May 2025: Al Nakheel Hygienic Paper Manufacturing Company signed a Dh335 million (USD 91 million) agreement with Abu Dhabi's ZonesCorp to build a new tissue production facility in Industrial City Abu Dhabi 2, featuring 144,000 square meters with initial Phase 1 capacity of 60,000 tonnes per year and potential Phase 2 expansion to 120,000 tonnes per year TradeArabia.
- May 2025: Valmet secured an order to supply a complete fifth Advantage DCT 200 tissue production line to Lila Group's new mill in Erzurum, eastern Turkey, adding 70,000 tonnes of tissue capacity with 5.6-meter width and 2,200 m/min design speed for domestic and export markets Valmet.
- May 2025: Hayat Egypt inaugurated its new tissue factory "TM11" in the Suez Canal Economic Zone with USD 60 million investment, expanding the company's regional production capabilities and strengthening its position in the Middle East and North Africa tissue market Almotawwer.
Middle East And Africa Pulp And Paper Industry Report Scope
Pulp and paper are used by various industries as raw materials to produce pulp, paper, paperboard, and other cellulose-based products. Pulp is widely used as a raw material across various end-user industries to produce paper-based products and packaging. The report covers a detailed country-level analysis of various pulp grades used for different applications across industries in the Middle East and Africa.
The pulp and paper industry in the Middle East and Africa is segmented by grade (bleached chemical pulp (BCP), dissolving wood pulp (DWP), unbleached kraft pulp (UKP), and mechanical pulp), application (printing and writing, newsprint, tissue, carton board, containerboard, and other applications), country (United Arab Emirates, Saudi Arabia, Iran, Israel, Jordan, Syria, Bahrain, Kuwait, Lebanon, Egypt, Tunisia, Morocco, Algeria, South Africa, and Rest of Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| Bleached Chemical Pulp (BCP) |
| Dissolving Wood Pulp (DWP) |
| Unbleached Kraft Pulp |
| Mechanical Pulp |
| Recycled Pulp |
| Printing and Writing |
| Newsprint |
| Tissue |
| Cartonboard |
| Containerboard |
| Specialty Papers |
| Food and Beverage Packaging |
| Consumer Goods Packaging |
| Hygiene Products |
| Publishing and Education |
| Industrial and Specialty Applications |
| Graphic Papers |
| Packaging Papers |
| Tissue Papers |
| Specialty Papers |
| Chemical Pulping |
| Mechanical Pulping |
| Recycled Fibre Processing |
| Integrated Pulp and Paper Mills |
| Middle East | Saudi Arabia |
| United Arab Emirates | |
| Turkey | |
| Rest of Middle East | |
| Africa | South Africa |
| Kenya | |
| Rest of Africa |
| By Grade | Bleached Chemical Pulp (BCP) | |
| Dissolving Wood Pulp (DWP) | ||
| Unbleached Kraft Pulp | ||
| Mechanical Pulp | ||
| Recycled Pulp | ||
| By Application | Printing and Writing | |
| Newsprint | ||
| Tissue | ||
| Cartonboard | ||
| Containerboard | ||
| Specialty Papers | ||
| By End-user Industry | Food and Beverage Packaging | |
| Consumer Goods Packaging | ||
| Hygiene Products | ||
| Publishing and Education | ||
| Industrial and Specialty Applications | ||
| By Product Type | Graphic Papers | |
| Packaging Papers | ||
| Tissue Papers | ||
| Specialty Papers | ||
| By Process Technology | Chemical Pulping | |
| Mechanical Pulping | ||
| Recycled Fibre Processing | ||
| Integrated Pulp and Paper Mills | ||
| By Geography | Middle East | Saudi Arabia |
| United Arab Emirates | ||
| Turkey | ||
| Rest of Middle East | ||
| Africa | South Africa | |
| Kenya | ||
| Rest of Africa | ||
Key Questions Answered in the Report
How large is the Middle East and Africa pulp and paper market in 2025?
The market is valued at USD 17.41 billion in 2025 with a 3.54% CAGR outlook to 2030.
Which country leads demand in the region?
Saudi Arabia holds 18.52% share thanks to Vision 2030-backed capacity expansion.
What segment shows the fastest growth?
Specialty Papers rise at a 6.64% CAGR fueled by industrial and sustainable packaging uses.
How are single-use plastic bans influencing demand?
Regulations in UAE and Saudi Arabia are shifting volumes toward food-service board and carrier bags made from paper.
What is the main supply challenge for mills?
Volatile imported wood-chip prices and chronic water stress raise operating risks.
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