Middle East & Africa Paper Bags Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 478.5 Million |
| Market Size (2029) | USD 617.40 Million |
| CAGR (2024 - 2029) | 5.20 % |
| Market Concentration | High |
Major Players.webp)
*Disclaimer: Major Players sorted in no particular order |
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Middle East & Africa Paper Bags Market Analysis
The Middle East & Africa Paper Bags Market size is estimated at USD 478.5 million in 2024, and is expected to reach USD 617.40 million by 2029, growing at a CAGR of 5.20% during the forecast period (2024-2029).
- Restaurants, hotels, cafes, and catering establishments are witnessing a surge in the adoption of paper bags. This trend is further fueled by the rising preference for on-the-go dining and the rise in online grocery deliveries. The changing lifestyle dynamics in Middle Eastern countries are notably amplifying the demand for paper-based packaging in the food service sector. Today's consumers prefer convenient, on-the-go food options, looking for a fast energy boost. Additionally, the environmental benefits of paper bags, such as biodegradability and recyclability, are driving their popularity among eco-conscious consumers.
- Further, urbanization has led to a significant shift in consumer behavior. Modern consumers spend more time away from home at social gatherings, outdoor events, or sports activities. Consequently, the demand for on-the-go food options is on the rise. This trend is also supported by the increasing availability of diverse and healthy food choices that cater to the fast-paced lifestyle of urban dwellers.
- Government regulations aimed at curbing plastic usage are propelling the paper bag market in the region. In line with its sustainability goals, the United Arab Emirates planned to ban single-use plastic bags starting in January 2024. This initiative is driven by Ministerial Resolution No. 380 of 2022, which regulates and mandates the phasing out of single-use plastic products, including plastic bags. The United Arab Emirates is also eyeing a ban on Styrofoam containers, commonly found in takeaway food packaging, slated for 2026.
- The momentum is further evident as the Ajman Municipality and Planning Department have already taken steps to announce a ban on plastic bags. Additionally, the Emirates observes an annual 'Plastic Bag Free Day' on May 16, emphasizing its commitment to reducing plastic waste. These measures reflect a broader regional trend toward sustainable packaging solutions, driving demand for paper bags and other eco-friendly alternatives.
- Also, the paper bags market in Saudi Arabia is poised for growth, as several companies are ramping up their operations in the region. LuLu hypermarkets made a significant move by unveiling a range of reusable and paper bags in all its Saudi stores. This initiative aligns with a larger strategy to combat plastic usage and champion environmental conservation. LuLu's proactive stance coincides with Saudi National Day, positioning it as a pioneer among the Kingdom's hypermarkets and setting the stage for increased adoption of eco-friendly paper bags.
- While reliable and easily transportable paper products have existed for some years, their longevity has brought challenges. Paper bags, primarily crafted from cellulose fibers, can be sourced from either virgin materials or recycled from trees. The paper industry grapples with escalating raw material costs and supply bottlenecks. Fluctuations in raw material availability and costs in the region have significantly disrupted and delayed the growth of the packaging market. Intense price competition has compelled vendors to slash prices, aiming to stay competitive and affordable.
Middle East & Africa Paper Bags Market Trends
The Retail Segment is Expected to Address a Major Demand
- The retail industry is witnessing significant growth, with quick-service restaurants (QSRs) increasingly turning to disposable packaging, particularly paper bags, to mitigate environmental risks. Paper bags are favored for their biodegradability, reusability, and recyclability. Moreover, the rising trend of social gatherings during special occasions further fuels the demand for paper bags in the country.
- The recyclable nature of paper stands out as a pivotal factor propelling the market's expansion, enabling vendors to align with sustainability objectives. Additionally, the government's stringent regulations on plastic usage and the increasing consumer awareness regarding environmental conservation are further driving the adoption of paper bags. The market also benefits from technological advancements in paper bag manufacturing, which enhance durability and functionality, making them a viable alternative to plastic bags.
- The Abu Dhabi Environment Agency has also banned single-use plastic bags. At the same time, the Dubai government is set to introduce new charges aimed at curbing the use of single-use plastics in the Emirates. These bans and government initiatives are poised to expand the paper bag market in the region. Moreover, with a rising influx of tourists and developing economic activities in the retail sector, the demand for paper bags will surge in the coming years.
- The rise of e-commerce has profoundly reshaped the retail landscape. This transformative trend, altering consumer habits and retail frameworks, is gaining momentum, particularly in the Middle East. The sector holds immense promise for industry players, buoyed by robust per capita income, advanced logistics, expanding internet access, and tech-savvy consumers. Retail sales in Saudi Arabia have shown an upward trend from USD 126.10 billion in 2021. They are projected to reach USD 155.60 billion by 2024, creating an opportunity for the paper bag market with a focus on the ban on alternative packaging options.
The United Arab Emirates is Expected to Hold Significant Share in the Market
- The United Arab Emirates (UAE) emerges as a frontrunner in the Middle East's online market, propelled by a tech-savvy populace and a proactive government keen on nurturing a digital economy. With robust infrastructure, streamlined logistics, and business-friendly laws, coupled with Dubai's rising prominence as a regional e-commerce hub, the UAE's e-commerce landscape is thriving. This surge in online commerce draws local startups and global enterprises to establish their presence, cementing Dubai's status as a premier e-commerce destination. This attracts global paper bag companies that are also spreading their presence in the region and collaborating with domestic manufacturers and delivery partners, which boosts the need for packaging in various end-user segments.
- Further, policy and compliance significantly influence the trajectory of the paper bag manufacturing industry. With tightening regulations on single-use plastics, manufacturers are compelled to adhere to the region's stringent environmental and waste management standards. Shifting consumer preferences and the surge in e-commerce and home deliveries fuel a rising appetite for paper bags. This trend reflects evolving consumer behavior and presents a lucrative avenue for businesses to explore. The increased demand for sustainable packaging solutions allows manufacturers to innovate and expand their product lines to meet market needs.
- Deliveroo UAE reports robust growth in its on-demand grocery segment, marked by a substantial surge in grocery orders nationwide. In 2023, the platform witnessed a twofold increase in on-demand grocery sites, with orders spiking by 62% in Dubai and 135% in Abu Dhabi, underscoring a dedicated response to shifting consumer demands. This growth reflects Deliveroo UAE's strategic expansion and creates opportunities for paper bag manufacturers in the region.
- Further, as per the USDA Foreign Agricultural Service, the retail value of food e-commerce in the United Arab Emirates grew in 2020; it was USD 421 million, which increased to USD 1,072 million. This has also created a market for the use of paper bags in food delivery.
- E-commerce companies have different innovations and collaborations to promote sustainability and create market opportunities. For instance, Deliveroo UAE, a prominent player in the online food delivery sector, has unveiled a new web-based packaging store, aligning with its Environmental, Social, and Governance (ESG) strategy. In collaboration with eco-conscious Sineo Packaging, a player in recyclable and biodegradable solutions, the initiative brings expertise to this partnership. Through the platform, Deliveroo's restaurant partners gain access to a selection of 20 eco-friendly items, ranging from paper bags and bottles to food containers, napkins, and cutlery.
Middle East & Africa Paper Bags Industry Overview
The Middle East and African paper bags market is consolidated. However, owing to several established players with a global presence, the vendors are focusing on expanding their market presence in the Middle East, especially in the developing regions, to maximize their market presence. Gulf East Paper and Plastic Industries LLC, Hotpack Packaging LLC, Shuaiba Industrial Company (KPSC), Green Bags UAE, and others are key players.
In June 2023, Spinneys, a retail player, and Hotpack Global, a UAE-based sustainable packaging provider, joined forces to pioneer a groundbreaking initiative. Together, they have unveiled a line of shopping bags crafted exclusively from 100% post-consumer recycled (PCR) resins. This milestone underscores Spinneys' commitment to sustainability, positioning them as the trailblazer in the UAE's retail landscape with this eco-friendly packaging solution.
In June 2023, Mondi, a global player in sustainable packaging and paper, unveils SolmixBag, a revolutionary water-soluble bag tailored for the construction sector.SolmixBag, a single-ply paper innovation, is engineered to house and convey dry construction essentials like cement and mortar mixes. Upon contact with water during the mixing phase, the bag dissolves seamlessly, intertwining its fibers with the product. This not only curbs waste but also slashes paper management expenses. Moreover, directly placing the bag into the mixer without prior opening significantly reduces dust on construction sites.
Middle East & Africa Paper Bags Market Leaders
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Gulf East Paper and Plastic Industries LLC
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Hotpack Packaging LLC,
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Shuaiba Industrial Company ( K.P.S.C )
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Green Bags UAE
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Huhtamaki Oyj
*Disclaimer: Major Players sorted in no particular order
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Middle East & Africa Paper Bags Market News
- January 2024: The Public Investment Fund (PIF) finalized an investment deal with the Middle East Paper Company (MEPCO), a prominent manufacturer specializing in paper-based products in the Middle East and North Africa. PIF holds a 23.08% stake in MEPCO, achieved through a capital increase and subscription to new shares. With this investment, PIF aims to increase MEPCO's production capacity, enhance operational efficiency, and champion environmental sustainability, particularly by producing recyclable paper goods, aligning with Saudi Arabia and PIF's sustainability objectives.
- January 2024: The Arab Banking Corporation (ABC) and the Saudi Paper Manufacturing Company inked a significant banking facility agreement valued at EUR 24.9 million (USD 26.9 million). The Saudi Paper Manufacturing Company has specifically earmarked this financing for pivotal growth initiatives. The primary focus lies on acquiring new projects, a move set to broaden the company's operational horizons. This strategic step perfectly aligns with the company's vision of bolstering its market presence through diversification. Beyond expansion, the funding is poised to strengthen the company's liquidity, ensuring a robust working capital to meet its operational difficulties. Such financial fortification is not only about sustaining seamless business operations but also about adeptly meeting market dynamics.
Middle East & Africa Paper Bags Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitutes
4.2.5 Intensity of Competitive Rivalry
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increased Growth of Paper Bags Packaging in the E-commerce Sector
5.2 Market Challenges
5.2.1 Concerns Regarding the Availability of Material
6. MARKET SEGMENTATION
6.1 By Type
6.1.1 White Kraft
6.1.2 Brown Kraft
6.2 End-user Type
6.2.1 Retail
6.2.2 Food
6.2.3 Construction
6.2.4 Agriculture & Chemical
6.2.5 Other End-user Types
6.3 By Country
6.3.1 United Arab Emirates
6.3.2 Saudi Arabia
6.3.3 South Africa
6.3.4 Nigeria
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 ENPI Group
7.1.2 Huhtamaki Group
7.1.3 Gulf East Paper and Plastic Industries LLC
7.1.4 Hotpack Packaging LLC
7.1.5 Shuaiba Industrial Company ( KPSC )
7.1.6 Green Bags UAE
7.1.7 Maimoon Papers Industry
7.1.8 Bag The Future(Pinnacle Enterprises General Trading LLC)
7.1.9 Western Modern PAC
7.1.10 W A K S Paper Bags Manufacturing LLC
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
Middle East & Africa Paper Bags Industry Segmentation
Paper bags, crafted from renewable and biodegradable wood pulp, primarily sourced from trees, are a staple in the packaging industry. The most prevalent types of paper used in their production are Kraft paper and initiation Kraft paper. These bags find widespread applications as shopping carriers, packaging solutions, and even as sacks. To enhance their durability, paper bags are increasingly manufactured with multiple walls, making them ideal for storing and transporting various goods, ranging from food and beverages to animal feed. These bags are often equipped with twisted or flat handles for easy handling. Notably, the retail sector heavily relies on paper bags for customers' shopping needs.
The Middle East and African paper bags market is segmented by type (white kraft and brown kraft), end-user type (retail, food, construction, agriculture & chemical, and other end-user types), and country (United Arab Emirates, Saudi Arabia, South Africa Nigeria, and Rest of Middle East & Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Type | |
| White Kraft | |
| Brown Kraft |
| End-user Type | |
| Retail | |
| Food | |
| Construction | |
| Agriculture & Chemical | |
| Other End-user Types |
| By Country | |
| United Arab Emirates | |
| Saudi Arabia | |
| South Africa | |
| Nigeria |
Middle East & Africa Paper Bags Market Research FAQs
How big is the Middle East & Africa Paper Bags Market?
The Middle East & Africa Paper Bags Market size is expected to reach USD 478.5 million in 2024 and grow at a CAGR of 5.20% to reach USD 617.40 million by 2029.
What is the current Middle East & Africa Paper Bags Market size?
In 2024, the Middle East & Africa Paper Bags Market size is expected to reach USD 478.5 million.
Who are the key players in Middle East & Africa Paper Bags Market?
Gulf East Paper and Plastic Industries LLC, Hotpack Packaging LLC,, Shuaiba Industrial Company ( K.P.S.C ), Green Bags UAE and Huhtamaki Oyj are the major companies operating in the Middle East & Africa Paper Bags Market.
What years does this Middle East & Africa Paper Bags Market cover, and what was the market size in 2023?
In 2023, the Middle East & Africa Paper Bags Market size was estimated at USD 453.62 million. The report covers the Middle East & Africa Paper Bags Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Middle East & Africa Paper Bags Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Middle East & Africa Paper Bags Industry Report
Statistics for the 2024 Middle East & Africa Paper Bags market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Middle East & Africa Paper Bags analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
