MEA Soft Drinks Packaging Market Size

MEA Soft Drinks Packaging Market Analysis

The Middle East and Africa (MEA) region is one of the significant markets for soft drinks packaging, owing to the massive demand for soft drinks and other beverage products. This factor is augmenting the growth of the market. It is estimated to be growing at a CAGR of 4%, to reach USD 18.01 billion by 2026.

• According to a study by Tetra Pack, the GCC consumed 3,733 million liters of dairy, 2,646 million liters of juice, nectars, and still drinks, 6,909 million liters of coffee and tea, 11,310 million liters of packaged water, and 2,981 million liters of carbonated soft drinks in 2018 for a total of 27,857 million liters.
• The beverage industry plays an essential role in the region. According to the Eighth Arab Beverages Conference, the beverage industry caters to about 300 million consumers in the region, with a production volume of about 10 billion liters per year. The beverage industry continues to play a significant role in shaping the region's economy.
• The demand for health drinks is expected to increase, influenced by the campaigns led by the ministries of health in various countries in the region. Due to the ban on alcohol in many countries in the region, soft drinks, such as energy and health drinks, are considered substitutes. According to Agriculture and Agri-Food Canada, the retail sales of fortified and functional energy drinks in the United Arab Emirates are expected to account for USD 344.8 million in 2020.
• The demand for bottled water increased significantly in the region. In addition, consumers are more conscious of the need for healthier diets. The increased demand for bottled water, in turn, is expected to augment the growth of the bottled water packaging market in the MEA region.
• Moreover, there is a significant demand for PET bottles for water and other soft drinks packaging. For instance, Almarai developed its business through strategic investments. It is the largest producer and distributor of soft drinks in the Middle East. As the leader in the juice market, Almarai installed two new Sidel PET complete lines, each one handling 54,000 bottles/hr, in its Al Kharj central processing plant (CPP).
• With the recent outbreak of COVID -19, the production of many manufacturers of soft drink packaging solutions decreased (due to lockdown situations in the region and the disruption in the supply chain). This factor impacted the manufacturing of packaging products among various companies. For example, on March 27, 2020, the UAE government closed the fresh food market for two weeks. The other countries in the region, such as Saudi Arabia and Qatar, also implemented the same. The Asir municipality ordered safe and secure packaging for food and beverage light of the pandemic situation.
• The African region is facing a decline in GDP due to the pandemic. This is expected to impact its supply chain, as it is heavily dependent on importing raw materials and goods. This, in turn, is expected to affect the manufacturing of packaging products in the region.