Market Trends of Middle East and Africa Pulp and Paper Industry
Increase in Consumer Demand for Packaged and Fresh Food to Drive the Market
- Food and beverage manufacturers are making significant efforts to provide sustainable materials and packaging, functional and convenient displays, and healthier and fresh food options to meet consumer demand. Paper bags are becoming increasingly popular in restaurants, hotels, cafes, and other catering establishments. Similarly, the growing popularity of on-the-go dining and online grocery delivery services has increased the demand for paper bags in the hospitality industry. Consumer expectations are changing owing to sustainability, customization, and e-commerce, which drive innovation in packaging.
- According to Boston Survey Group August 2021, as food demand changes, African countries plan to invest strategically in creating agro and food-related industries, especially downstream ones. Africa's green and diverse primary sectors have the potential to support almost all types of businesses involved in the production, distribution, handling, storage, processing, packaging, and retailing of processed food. Growing agribusiness will help shift subsistence farmers into related industrial and service occupations, allowing them to earn higher incomes, increase their purchasing power, and increase food demand.
- Similarly, according to the International Food Policy Research Institute (IFPRI) in March 2021, the growing demand for packaged food is due to the rapid expansion of food processing and modern distribution and packaging systems in the food supply chain, with the growth of small and medium enterprises (SMEs) and extensive domestic and international food companies. They have also stimulated the demand for processed foods through aggressive marketing campaigns and the low cost of such foods achieved through investments in economies of scale. Many of the major players in the African food market have expanded their operations through foreign direct investment.
- With the evolving lifestyle, Middle Eastern countries have seen an increased demand for paper-based packaging products in the foodservice sector. Consumers frequently grab convenient and functional drinks, such as RTD coffee and tea, energy drinks, and other beverages that can be consumed whenever and wherever they need a boost. As such, non-alcoholic drinks that offer functional and practical benefits that are relatively healthy and natural can appeal to busy consumers. Leveraging the natural, energy-boosting characteristics of electrolytes, vitamins, minerals, and other natural ingredients in new product formulations can help brands target tired consumers.
- With the rise of urbanization, many modern consumers spend much time out of their homes, traveling to and from social venues, enjoying the weather, and attending sporting events. Consequently, consumers are increasingly drinking while on the move. Recently, in November 2022, more than 1.4 million fans from across the world visited Qatar for the FIFA World Cup 2022. Qatar rolled out the red carpet for over 1 million visitors for the FIFA World Cup and aims to attract up to six million a year by 2030. Consumption of packaged food is expected to grow based on different perspectives of regulations by the country and industry over the forecast period.
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South Africa to Hold Major Share in the Industry
- The growth of the food ingredients market in South Africa is fueled by the expansion of the food and beverage industry, increasing consumption of dairy and frozen dairy products, increased focus on innovation in the food and beverage sector, and increasing demand for processed and packaged foods.
- The South African pulp industry is characterized by heavy use in the food industry. Consumers tend to seek low-cost, sustainable, lightweight, reusable, recyclable, convenient, and heat-resistant products, which help increase demand for food packaging. The growing demand for portable and suitable forms of food packaging helped drive the use of packaging products in various industries.
- Pulp-based packaging is more sustainable than other materials due to its recyclability and degradability. In addition, convenience, low cost, and light weight have made flexible packaging the most desirable packaging material driving the market's growth.
- The Paper Manufacturers Association of South Africa (PAMSA), in February 2023, conducted a study focusing on paper and print in modern society. The study found that 82% of South African consumers recognize that paper and pulp are still part of their daily lives. PAMSA shares insights from a recent paper and print survey. However, many individuals need to be made aware of the benefits of the materials. This has led a large portion of the population to underestimate the contribution of the pulp and paper industry to South African society. Therefore, the Paper Manufacturers Association of South Africa (PAMSA) partnered with GM Television to raise awareness. Such initiatives would drive the market for the pulp industry in the country.
- The country anticipates an increasing demand for food and beverage packaging during the forecast period. Rising household expenditure in the country drives the demand for convenient food products, further propelling the market for sustainable and eco-friendly materials such as pulp in the coming years.
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