Market Trends of MEA Soft Drinks Packaging Industry
This section covers the major market trends shaping the MEA Soft Drinks Packaging Market according to our research experts:
Saudi Arabia to hold the highest market
- Saudi Arabia is one of the most extensive soft drinks packaging industries in the Middle Eastern region. The country has a vast consumer base, adding to the rapid growth in the demand for soft drinks packaging from the country every year.
- The factors, such as high disposable income, ease of availability, improvement in living standards wide variety, increasing tourism, presence of domestic, and the presence of the international players in the market, are fueling the growth of the beverages industry in the country.
- In addition, Saudi Arabia is one of the largest consumers of plastic products in the GCC region. According to the recent estimates of the GPCA, the country has about 95 kg per capita consumption of plastics, making it the largest consumer of plastic products in the entire GCC region.
- Despite the high demand and consumption, plastic packaging also has considerable drawbacks. The local manufacturers who source polymer or other plastic raw material from the country are often exposed to uncertainty caused by fluctuating crude oil prices and security incidents, affecting the cost of polymers and resins.
- Currently, Saudi Arabia recycles about 10% of its PET (polyethylene terephthalate) bottles. The recycling rate is expected to increase, with the increasing focus of the government on recycling. This, in turn, is expected to drive the demand for PET in the country.
- Companies are increasingly focusing on the urgency of recycling PET into food-grade products, such as beverage containers. For instance, The Coca-Cola Company intends to use 50% recycled PET in its containers by 2030.
- The Saudi Arabian-based SABIC developed new Flowpact PP impact copolymers to assist in manufacturing injection-molded rigid packaging. Flowpact PP was designed to produce rigid packaging, with volumes ranging between 200 ml and around 10 L. It can be used to manufacture closures and caps used for packaging soft drinks. The new Flowpact PP offers rigid packaging with enhanced stacking capabilities and makes transport and storage more economical.
- Stringent regulations for the use of plastic are imposed in the country. This is forcing the manufacturers to opt for new packaging alternatives, such as oxo-degradable plastics. According to the Larbi El-Attari of the Swiss Business Hub Middle East in Saudi Arabia, these regulations are equally applicable to the plastic produced in Saudi Arabia or imported to the country. As a result of this development, non-compliant products can no longer be brought through import channels.
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Glass Jars in Egypt are expected to Register a Significant Growth
- Glass Jar is among the most preferred packaging material for soft drinks as it preserves for the long term and avoids contamination. The ability of glass jars to preserve the aroma and flavor of the drink is driving the demand.
- Therefore, most restaurants use mason glass jars to serve as they are attractive, easy to wash, and reusable. The rise in environmental awareness among customers is also forcing manufactures to reconsider their packaging.
- Many vendors in the market are modernizing their manufacturing plants by switching to advanced tools and production infrastructure to meet the needs of their quality-conscious customers.
- For instance, Arab Pharmaceutical Glass Co. has upgraded its manufacturing plants by switching to electronically controlled glass melting furnaces, six automated production lines, electronically controlled state-of-the-art forming machines, and inspection machines. It offers glass jars to pharmaceutical companies such as Gsk, Aventis Pharma, MEPACO, Novartis Pharmaceuticals, etc.
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