Market Trends of UAE Corrugated Board Packaging Industry
This section covers the major market trends shaping the UAE Corrugated Board Packaging Market according to our research experts:
Strong Demand from the E-commerce Sector
- To ensure quality, e-commerce packaging is becoming more confidential and efficient. Smaller packaging allows postal and delivery personnel to load more products onto their trucks, enabling low carbon emissions and time savings. Now that more corrugated boxes are arriving on doorsteps rather than in stores, the sector is counting on more people to keep up with recycling.
- According to PMMI, the Association for Packaging and Processing Technologies, the global packaging industry for e-commerce may reach USD 55 billion by this year, registering a CAGR of 14.3%. There are numerous chances to fulfill the requirements of upcoming cutting-edge package designs, especially for corrugated packaging, which might account for more than 80% of e-commerce packaging.
- Corrugated packaging will profit immensely if e-commerce becomes a more significant retail component. Owing to the popularity of e-commerce packaging, corrugated boards are often the preferred material.
- Since online shopping platforms have been overgrown across the region, the demand for tertiary and secondary paper packaging products and corrugated boxes has increased dramatically.
- Post COVID-19 pandemic, the e-commerce industry in the United Arab Emirates is witnessing a significant transformation in consumer behavior. Consumers have increased their usage of e-commerce platforms. This has increased the demand for corrugated boards from e-commerce companies. The growing e-commerce industry will positively impact the corrugated board packaging market.
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Food Industry to Witness Significant Growth
- The food industry is one of the country's largest packaging consumers. The country has a high rate of packaged food and beverage consumption, owing to rapid urbanization and an increasing number of tourists and expiates that often prefer safer processed foods. Also, the country has stringent packaging regulations regarding food and beverages.
- Moreover, the increasing demand for packaged food in the country is augmenting the demand for corrugated board packaging. With the growing number of single households requiring more takeaway and delivery food services, the market requirement food service sector has been reshaped, driving the growth of the market studied in the country. For instance, according to Bayt.com, around 26% of consumers in the United Arab Emirates opt for home delivery of food during Ramadan.
- Many companies offer retail-ready packaging of foods, such as snacks, confectionery, and dairy products, aiding the market study's growth. The retail-ready packaging is a significant cost saver for retailers. It is estimated that these secondary packaging formats could reduce shelf restocking and handling costs by up to 50%.
- Furthermore, corrugated cases ship goods to an online retailer warehouse or fulfillment center. There is an emerging trend of weekly or monthly subscription boxes and meal kit services that offer direct-to-consumer delivery of specialist food. This trend has provided a new opportunity for corrugated board suppliers with delivery-friendly formats containing goods within a die-cut interior.
