Market Trends of Egypt Paper Packaging Industry
This section covers the major market trends shaping the Egypt Paper Packaging Market according to our research experts:
Consumer Consciousness of Sustainable Packaging to Drive the Growth
- Packaging waste is considered a massive problem in Egypt. The problem is growing significantly over the past few years. According to World Wildlife Fund (WWF), Egypt produces 5.4 million metric tons of plastic annually, making it the most prominent plastic polluter in the Arab world.
- Furthermore, the pandemic significantly increased the use of single-use plastic, the main component in masks, gloves, hand sanitizer bottles, test kits, takeout containers, and delivery packaging.
- However, owing to the increasing level of packaging waste generated in the country every year, the need to develop a practical approach to handle it and increase awareness among consumers is felt.
- As a result, several initiatives have been taken by the Egyptian government and several organizations operating in the region to reduce plastic use for packaging. For instance, in March 2021, the Egyptian environment ministry announced a USD 3 million project to limit plastic bag use. The project will be funded by Japan and implemented by the United Nations Industrial Development Organization (UNIDO).
- Such initiatives and growing consumer awareness are anticipated to create significant opportunities in the Egyptian paper packaging market during the forecast period.
Understand The Key Trends Shaping This Market
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Retail Sector to Hold Significant Market Share
- The country's move to reduce plastic packaging consumption in line with the global movement is creating opportunities in the paper packaging market. Paper packaging development involves consideration of sustainability, environmental responsibility, and environmental and recycling regulations.
- As a result, they are moving away from single-use plastic bags and investing in eco-friendly packaging such as paper and fiber-board solutions. Furthermore, the rapid development in e-commerce also impacted the paper packaging industry's growth.
- Additionally, e-commerce volume reached about USD 4.8 billion in the previous year, compared to USD 3.6 billion in 2018, according to the latest statistics issued by the Federation of Egyptian Banks. The growing smartphone penetration, along with the increasing number of internet users in the country, is further driving the e-commerce sector growth in the country.
- The growth of the retail and e-commerce industry, along with the growing demand for sustainable packaging, is creating a favorable environment for the development of the paper packaging industry in the country, which is anticipated to grow further during the forecast period.
