UAE Flexible Packaging Market Size

UAE Flexible Packaging Market Analysis

The UAE flexible packaging market is expected to register a CAGR of 4.2% over the forecast period. There has been an impact on the overall packaging ecosystem owing to Russia- Ukraine war. Regulatory reforms in the Emirates are the major factors driving investments and changes in the packaging industry. The country has changed its policies and regulations to attract foreign investment and enhance its local manufacturing. The trend is anticipated to boost the demand for flexible packaging in the forecast period.

• The market for flexible packaging in the United Arab Emirates is anticipated to rise in response to the rising trend of consumer goods, including food, drinks, and medicines. Demand for practical, portable packaging solutions is growing as a result. Packaging now places a greater emphasis on convenience and sustainability as the nation becomes more urbanized. The general trend toward flexible packaging is to capitalize on processed food packaging and adjust to rapidly evolving consumer preferences.
• There has been a considerable growth in demand due to the emergence of modern retail formats in UAE, along with the accessibility of a larger range of frozen ready-to-eat foods, luring shoppers who value convenience over time. Furthermore, the popularity of packaged food has grown due to the rising impact of western eating patterns among local customers. Additionally, a sizable share of immigrants, tourists, and young consumers are fueling demand for prepared, processed, and frozen goods. All this is expected to impact the demand for flexible packaging.
• Agthia Group PJSC, one of the top food and beverage businesses in the UAE, announced the completion of its strategic purchase of BMB Group in December 2021. BMB Group is a regional provider of healthy snacks and meals with a rising global presence. The acquisition strengthens Agthia's position in the quickly expanding snacking and healthy food sectors. With more than 2,000 SKUs available in more than 23 countries worldwide, BMB has been a pioneer in confectionery and health food for almost 15 years. The list also includes the United States, Saudi Arabia, and the United Arab Emirates, home to significant shops like Walmart, Sam's Club, and Costco, supplied by BMB. Such purchases will boost the flexible packaging business in the food sector.
• However, packaging is one of the primary sources of plastic waste. The plastic waste problem in the United Arab Emirates is a major environmental issue related to pollution and safe disposal. Despite efforts to use alternative materials and recent developments in biodegradable plastics, the situation still needs improvement. Also, the rising sustainability concern the consumers are opting for paper-based, propelling the demand for paper-based flexible packaging.
• The economy of the United Arab Emirates had a slump during the COVID-19 epidemic. According to International Monetary Fund (IMF), the nation's GDP decreased by 6.14% in 2020 compared to 2019. It was primarily caused by the closure of several organizations and the scaling back of their operations. The COVID-19 epidemic forced the UAE to postpone or cancel several important events, including Expo 2020, and key activities, including meetings, conferences, and exhibits, which affected the country's food services business. Malls across the nation, where the bulk of retail stores is situated, were shut down entirely for an extended period, which significantly impacted the industry.