UAE Rigid Plastic Packaging Market Trends

Market Trends of UAE Rigid Plastic Packaging Industry

This section covers the major market trends shaping the UAE Rigid Plastic Packaging Market according to our research experts:

The food industry is one of the largest consumers of packaging in the country. The country has a high packaged food and beverage consumption rate, owing to rapid urbanization and an increasing number of tourists and expatriates who often prefer safe processed foods. Also, the country has stringent packaging regulations for food and beverages.
The trend of economical, small packages and super-saver bulk packages is highly adopted in the food and beverage industry. For instance, Nutella launched its spreads in 750 g plastic packs in the UAE market. These packs proved to be increasingly popular, as they offer better value to consumers. Several other food brands also launched products in the market.
The shift pertaining to food consumption has its challenges, especially concerning food hygiene, transportation, and storage. The high temperatures often experienced in the UAE mean that food packaging must be contamination-free from the outset. Food packs must be properly sealed to maintain the freshness and moisture content. Plastic materials, such as PP, have a high heat tolerance, making them useful for packaging food in a hot climate.

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The standardization of the 'Made in UAE' initiative, which introduces the local manufacturers to the global market, is helping the country reduce its reliance on imports and strengthen its export potential. Such growth in the manufacturing sector has encouraged considerable investments in the packaging industry.
According to a joint study conducted by Dubai Economy and the global payments technology company, Visa, the UAE is making rapid strides as the fastest-growing e-commerce market in the Middle-East and North Africa (MENA). According to the study, UAE shoppers are among the top spenders online. In the broader Middle-East, North Africa, and South Asia (MENASA) region, the UAE represented the biggest annual spending per online shopper, at USD 1,648, and its growth is projected at 29.6% during 2020-2021.
At the beginning of the pandemic, more people began buying vitamin C and zinc as part of their efforts to boost immunity. When the number of COVID-19 cases peaked, the demand rose tremendously across Aster’s pharmacies.
Universal healthcare was rolled out in the UAE, creating a myriad of opportunities for pharmacies to cater to the country's growing population, and the proliferation of non-communicable lifestyle diseases means that the country's medical needs will continue to grow in the coming years. Most of the investments in the packaging sector are made toward adjusting companies’ packaging practices to the country's current economic situation and evolving standards.