Market Trends of United Arab Emirates Glass Packaging Industry
This section covers the major market trends shaping the UAE Glass Packaging Market according to our research experts:
Glass Bottles and Containers Expected to Witness Significant Growth
- The United Arab Emirates imports medicine from 72+ countries. Large research-based pharmaceutical companies have long existed in the country through various contract manufacturing or local distribution channels, creating market opportunities for glass bottle and container manufacturers.
- Over the last few years, the United Arab Emirates government has announced two major plans, Dubai Industrial Strategy 2030 and Abu Dhabi Vision 2030. It aims to strengthen the domestic high-growth sector. The economic strategies of both of the country's two largest cities identify the pharmaceutical industry as a development priority. These development plans leverage glass bottle packaging for the pharmaceutical industry. Furthermore, the government announced plans to establish itself as a global hub for various international pharmaceutical companies to double the number of manufacturing sites by 2021.
- According to ITC calculations based on the Federal Bureau of Competitiveness Statistics and the United Nations, the value of glass imports is that domestic consumers store food and beverages for hygienic reasons and use glass to protect the environment from PET bottles, and this trend has been increasing recently in the region.
- The Crown Prince of Dubai encourages individuals and businesses to take small, influential steps to reduce disposable plastics. Recently, the Dubai Executive Council has approved a policy of imposing a 25 fils obligation on disposable plastic bags from July 2022. Due to consumer and employee concerns, many of the UAE's leading companies are offering eco-friendly alternatives such as reusable glass bottles, metal bottles, glass containers, bamboo straws and paper packages.
- Further, in January 2021, the UAE-based perfumer, Salva,revealed a new fragrance Hope dedicated to seafarers. Through this initiative, the brand wants to raise awareness of the plight of seafarers around the world and support them. Such initiatives are aimed at boosting the domestic glass bottle and containers market.
Understand The Key Trends Shaping This Market
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Personal Care Expected to Witness Significant Growth
- Due to the increasing influence of lifestyles and cosmetic products, this country has a great demand for beauty and personal care products across the United Arab Emirates. The Messe Frankfurt estimated retail prices for cosmetology products in 2020 to be USD 2.71 billion. Personal care products will lead to a boost in demand for glass packaging across the United Arab Emirates.
- The region's consumers are becoming more health-conscious and are seeking natural, chemical-free goods. The demand for organic personal care products may also rise due to strict regulations designed to promote the use of organic ingredients in the skincare sector. It is anticipated that market growth will result from innovations that increase production effectiveness and shelf life. Therefore, perfect glass packaging is necessary to protect personal care products for a longer period of time.
- Various brands from different parts of the world are investing in and launching their personal care products in glass packaging in the United Arab Emirates as part of business expansion. For instance, in February 2022, London-based skincare brand Saltee finally landed at GCC and launched exclusively at Powder, offering various products focused solely on skin protection, nutrition, and recovery. Saltee also provides vegan, paraben-free, and ocean-friendly sun protection products in recycled packaging using glass as primary material.
- Additionally, key players are focsued on expanding their business by opening new faciltiies in the country. For instance, SGS SA opened a brand-new testing facility in Dubai in March 2022. The lab at the new facility specializes in the analytical testing of cosmetic and personal care goods. SGS SA covers wide range of packaging solutions that includes glass packaging and more materials. Such expansions will leverage glass packaging in the the country.
- The country is also seeing significant investment in the cosmetics industry to inspire innovative and sustainable packaging solutions including recycle and glass packaging. For example, Unilever has launched a personal care product, Beauty and Planet, to promote and support a sustainable beauty movement in the Middle East. The product range aimed to reduce annual carbon dioxide emissions by 20% in 2020.
- Additionally, there is a large selection of cosmetics and fragrances available to consumers in the United Arab Emirates. In order to capture the largest market and strengthen their position on the market, cosmetic and fragrance companies are upgrading their packaging with a range of sustainable materials specifically glass packaging.
