Market Trends of Egypt Paperboard Packaging Industry
Folding Cartons Expected to Register a High Growth Rate
- In the Egyptian paperboard packaging market, folding cartons are a predominant choice for consumer packaging. These cartons are primarily used in retail to secure individual products. Additionally, they serve as an effective promotional tool, encouraging impulse purchases and enhancing product visibility on shelves.
- The rapid expansion of the pharmaceutical industry, along with growing investments, is further anticipated to accelerate demand for folding cartons as it is the most widely used secondary packaging solution to numerous pharmaceutical products. For instance, in December 2023, APEX Pharma, an Egyptian pharmaceutical company, announced its plans to establish two pharmaceutical factories, one in Egypt and another in Saudi Arabia. The company will invest a total of EGP 4 billion over the next year. The initial investment for the new plant in Egypt will exceed EGP 1 billion, with projections estimating its value to reach between EGP 2 and 3 billion within three years.
- Furthermore, in response to the growing demand for cartons in the beverage industry, global players are engaging in strategic initiatives. For instance, recently, Tetra Pak, a global food processing and packaging solutions company, signed an agreement with Uniboard, a paperboard producer in Egypt, to cooperate with the objective to recycle used beverage cartons (UBC) in Egypt, with a total joint project value of over EUR 2.5 million (USD 2.79 million).
- The growing export of cartons, boxes, cases, and other paper and paperboard packaging is projected to fuel demand for paperboard packaging in Egypt, further supporting market growth. For instance, according to UN Comtrade, the export of cartons, boxes, cases, and other packaging of paper and paperboard from Egypt to Sierra Leone rose to USD 16.56 thousand in 2023 from USD 1.01 thousand in 2022.
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The Food Industry Segment Expected to Hold a Significant Share
- As the country experiences rapid urbanization and rising disposable incomes, consumers are increasingly shifting toward packaged food products for convenience and safety. This trend has led to a surge in demand for diverse packaging solutions, including cartons, boxes, and trays. Paperboard’s versatility, recyclability, and cost-effectiveness make it an ideal choice for packaging various food items, from dairy products and snacks to ready-to-eat meals.
- Food and beverage companies are increasing investments in Egypt to enhance production volumes, thereby creating opportunities in the folding cartons segment. For instance, during the Food Africa 2023 expo in December 2023, held at the Egypt International Exhibition Center, Food Trip Egypt, an emerging Egyptian snack manufacturer, announced a new investment of EGP 150 million (USD 3.07 million). The expo is under the esteemed patronage of the Egyptian Ministry of Trade and Industry, along with the Ministry of Supply and Internal Trade.
- The rising consumer price index (CPI) for food and non-alcoholic beverages could drive the growth of the paperboard packaging market. As inflation makes consumers more price-sensitive, they may seek more affordable packaging options. Paperboard packaging offers a cost-effective alternative to materials like glass or metal. Additionally, if consumers opt for larger package sizes or bulk purchases to reduce per-unit costs, the demand for paperboard cartons and boxes may increase. However, the overall impact on demand depends on factors such as consumer preferences, material availability, and competitive pricing.
- In addition to this, a rise in the disposable income of consumers, increased investments by international ready-to-eat food brands in the local market to boost the product's sales, and a strong consumer base are driving demand in the Egyptian paperboard packaging market.
