United Arab Emirates Plastic Packaging Market Size

UAE Plastic Packaging Market Analysis

The United Arab Emirates Plastic Packaging Market is anticipated to grow at a CAGR of 5.02% during the forecast period. The country's shifting regulations, consumer trends toward healthier products, and commitment to sustainability significantly impact the plastic packaging industry's ability to develop new products, designs, and technologies for its clients. The trends may drive the market growth during the forecast period. The Russia-Ukraine war has slightly created an indirect impact on the overall ecosystem of the United Arab Emirates plastic packaging market.

• Approximately 40% of the plastic used in the United Arab Emirates is single-use, and the country consumes 4 billion plastic bottles per year, according to Euronews. Plastic consumption per capita has shown an upward trend over the past decade in the United Arab Emirates, mainly due to the development of new products and material substitution in established markets. In many cases, plastics are still the material of choice, irrespective of metals, paper, etc., in a range of standard products. Also, plastics are the third most exported commodity in the United Arab Emirates.
• Moreover, the standardization of the 'Made in UAE' initiative, which introduces local manufacturers to the global market, is helping the country to reduce its reliance on imports and strengthen its export potential. The growth of this kind in the manufacturing sector encouraged considerable investments in the packaging industry. Most of the investments in the packaging sector are made toward adjusting their packaging practices to the country's current economic situation and evolving standards. With low purchasing power, the country's retail sector witnessed several consumer behavior changes.
• Packaging solutions that are lightweight, durable, and comfortable are some factors that have augmented the use of plastics as a packaging material across the country.
• Further, the demand for plastic packaging continues to surge even though serious concerns are being raised about its environmental impact. However, the market will face challenges from government regulations and consumer demand, pushing manufacturers to look for biodegradable plastic packaging solutions derived from sustainable sources.
• However, Government bodies are imposing regulations on the usage of single-use plastics in the country. For instance, in August 2022, according to the Emirates News Agency (WAM), the Sharjah Executive Council (SEC) decided that the city of Sharjah in the United Arab Emirates (UAE) will outlaw single-use plastic bags and materials as of January 1, 2024. As of July 1, 2022, Dubai has restricted single-use bags for carrying items. The stringent regulations on plastic products may restrain market growth.
• The COVID-19 epidemic has allowed it to impose regional regulations on plastic items and bans or restrictions on single-use plastics. Additionally, as businesses had to close due to the lockout and customers started to reduce spending, the demand for luxury products and packaging for non-food items has been negatively impacted. The nation's consumers have increased their online purchases of food goods. According to the Dubai-based Choueiri Group, the primary groceries being purchased were those with limited shelf life. It was primarily motivated by the need for freshness and the high nutritional value of boosting immunity. Dairy goods, fruits & vegetables, and bread were the most popular grocery items for online shopping.
• Further, the Russia-Ukraine war slightly affected the country's packaging since it does not rely much on Russia or Ukraine for the trade of plastic products.