Market Size of UAE Rigid Plastic Packaging Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 5.01 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
UAE Rigid Plastic Packaging Market Analysis
The UAE rigid plastic packaging market is expected to record a CAGR of 5.01% during the forecast period (2021-2026).
With the outbreak of COVID-19, rigid plastic packaging has been witnessing growth, owing to the demand for essential services. According to Aster Retail, pharmaceutical groups in the UAE had registered an increase of up to a 200% in the sales of multivitamins and zinc supplements since March 2020, as residents started taking proactive steps to boost their immunity. Since April 2020, there has been a 220% increase in the sales of supplements, such as vitamin C and zinc, as compared to 2019. Moreover, the rate was up by 50% in the first five months of 2021 at over 30 pharmacies. Aster Retail has more than 200 pharmacies across the UAE.
- The plastic consumption level in the UAE exceeded 100 kg per person. In the UAE, the plastic consumption level per capita showed an upward trend over the past decade, mainly due to the development of new products and material substitution in the established markets. In many cases, plastics are still the material of choice in a range of standard products. Also, plastics are the third most exported commodity in the UAE.
- Further, the region is witnessing significant manufacturing developments pertaining to plastic materials, such as polyvinyl chloride (PVC), which are used considerably in the rigid plastic packaging landscape. In June 2021, Reliance Industries Limited and the UAE's state-run oil giant, Abu Dhabi National Oil Company (ADNOC), announced their plan to develop a new petrochemical joint venture to produce chloralkali, ethylene dichloride, and PVC at the Ta'ziz Industrial Complex in Ruwais. The new unit is designed to have an annual production capacity of 1.1 million metric ton of ethylene dichloride, 940 thousand metric ton of chloralkali, and 360 thousand metric ton of PVC.
- The EAD's new single-use plastic policy also targets plastic cups, lids, cutlery, straws, stirrers, and food containers. Plastic bottles will be targeted through the introduction of a plastic bottle return deposit scheme.
- Such policies are poised to negatively affect the usage of rigid plastic packaging in the UAE, as several entities are poised to follow steps against single-use plastic locally. However, the COVID-19 outbreak has created flexibility in implementing directives for banning/regulating single-use plastics and any non-essential regulatory initiatives on plastic products in the region. Also, the demand for premium goods and non-food packaging has been hit, as stores had to be closed due to the lockdown and consumers started to cut back on their spending.
