Egypt Plastic Caps and Closures Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Market Size (2024) | USD 0.34 Billion |
| Market Size (2029) | USD 0.45 Billion |
| CAGR (2024 - 2029) | 5.77 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Egypt Plastic Caps and Closures Market Analysis
The Egypt Plastic Caps And Closures Market size is estimated at USD 0.34 billion in 2024, and is expected to reach USD 0.45 billion by 2029, growing at a CAGR of 5.77% during the forecast period (2024-2029). In terms of production volume, the market is expected to grow from 6.46 billion units in 2024 to 8.27 billion units by 2029, at a CAGR of 5.06% during the forecast period (2024-2029).
The Egyptian caps and closures market is growing due to convenience, ease of use, resealable properties, and lightweight. They are increasingly in the spotlight. Expanding economic activities and the rising prevalence of online retailing are poised to propel plastic packaging in the country.
- The plastic packaging market is set for significant growth, primarily fueled by escalating demands in vital end-use sectors like food, beverages, cosmetics, and personal care. This surge is further bolstered by the rise of modern retailing, a more affluent consumer base, and the swift expansion of e-commerce, especially in emerging regions.
- The health and wellness trend is steering consumers toward preventive healthcare, fueling a shift in the FMCG product market towards healthier lifestyle choices. Consequently, the demand for healthy beverages, including fruit and energy drinks, is rising, impacting the plastic caps and closures market. Two years ago, Egypt Otsuka Pharmaceutical, a subsidiary of Japan's Otsuka Holdings Co., is slated to construct a factory in Egypt, focusing on healthy beverages and supplements, with an investment of USD 30 million.
- In its 223 cities and urban centers, Egypt houses 43.1% of its population. Notably, 56% of these urban dwellers are concentrated in the Greater Cairo Region (GCR) and Alexandria Governorates. The GCR, home to over 19 million people, is Africa's most populous metropolitan area and serves as Egypt's economic powerhouse, hosting nearly 20% of the nation's residents. Food, beverage, and other industries are expected to witness growth in urban centers, which is anticipated to improve the market for caps and closures in the country.
- Manufacturers of plastic packaging products are pivoting toward inventing and refining materials, designs, and technologies, driven by evolving consumer preferences, regulatory mandates, and a broader sustainability agenda. Sustainability, a key concern for consumers, is prompting manufacturers to craft lighter containers and downsize packaging.
- The plastic packaging market is poised for further expansion, with a surge in innovative solutions like bioplastics, active packaging, and specialized packaging for perishables and dynamic environments. However, heightened awareness around sustainability and stringent regulations, especially concerning single-use plastics, pose challenges to the industry's growth trajectory.
Egypt Plastic Caps and Closures Market Trends
Polyethylene Segment is Expected to Push the Market Growth
- Polyethylene (PE), a highly durable plastic, stands out for its chemical resistance and cost-effectiveness. Derived from petroleum polymers, PE boasts resilience against environmental hazards. This versatile material is typically categorized into high-density polyethylene (HDPE) and low-density polyethylene (LDPE).
- In April 2023, Flex, an Indian company, initiated a USD 110 million polyethylene production project in Egypt's Ain Sokhna industrial zone under the aegis of Orascom Industrial Zones. Spanning 250,000 sq. m, the project, as detailed by the Suez Canal Economic Zone (SCZone), boasts a monthly production capacity of 30,000 tons. Flex, a major player in India's polyethylene sector, is strategically bolstering its presence in Egypt.
- Egypt's plastics industry is a vibrant segment within the broader chemical industry. Plastics have extensive applications in Egypt, from packaging to other end-user industries. Forecasts indicate a robust growth trajectory, with the Egyptian plastics market poised to expand by 10% annually over the next decade. This growth trajectory positions Egypt to lead as the continent's foremost consumer of plastics.
- Egypt's ETHYDCO shipped its first batch of recycled polyethylene products to Spain, building on its local market success and surging demand. ETHYDCO's marketing, sales, planning, production, and research departments emphasized the pivotal role each played in reaching the export milestone. The company underscored that this achievement reflected ETHYDCO's prowess and echoes the Ministry of Petroleum and Mineral Resources' emphasis on sustainability in the oil and gas sector, aligning with Egypt's 2030 vision for sustainable development. Such initiatives by companies to export polyethylene products might encourage the growth of caps and closures in the market.
- Demand for polyethylene caps and closures is expected to grow with the rising food and beverage industry in the country. According to CAPMAS (Egypt), the monthly consumer price index for food and non-alcoholic beverages in April 2023 was 204, which increased from 165 in January 2023. In April 2023, Egypt witnessed a notable uptick in its Consumer Price Index (CPI) for all items, primarily propelled by surging food prices.
The Beverage Sector is Expected to Drive Market Growth
- Household spending in Egypt is notably skewed toward the food and beverage sector. Families with one to two members allocate 29.9% of their budget to the sector, while larger families of five to six spend 31.8%. The trend peaks with families of nine or more dedicating a substantial 37% of their budget to food and beverages.
- Caps and closures maintain product freshness, enhance visual appeal, and comply with environmental regulations. This dual benefit makes them a favored choice for manufacturers, ensuring products are safer, more convenient for consumers, and cheaper to produce at scale.
- In the first quarter of 2024, Egypt's unemployment rate dropped to 6.7%, down from 6.9% in the previous quarter. The Central Agency for Public Mobilization and Statistics (CAPMAS) reported a 1% rise in Egypt's labor force, reaching 31.39 million, up from 31.1 million. Of this, 13.75 million were part of the urban labor force, with the remaining 17.63 million in rural areas. Busy lifestyles might improve the caps and closures market growth, driven by the rising popularity of single-serving beverage containers.
- While alcohol is widely available, its sale is restricted in certain regions like the Western Desert oases and Middle Egypt. Hotels and restaurants have become the go-to spots for a drink in areas without bars. According to the International Monetary Fund (IMF), the total consumer spending on alcohol and tobacco in Egypt in 2020 was USD 5,572.12 million, and it is expected to reach USD 6.558.94 million by 2024. A rise in consumer spending on alcohol might leverage the market for caps and closures in the country.
- The beverage industry is witnessing a shift toward category convergence. Players embrace a more unified strategy to cater to a broader spectrum of consumer tastes and occasions. The cost-efficiency and logistical convenience of plastic caps and closures have enticed several beverage companies to make the switch. This shift is anticipated to have a favorable impact on the market.
Egypt Plastic Caps and Closures Industry Overview
The Egyptian plastic caps and closures market is fragmented, with many domestic and significant players, such as Amcor PLC, Aptar Group, Bericap Holding GmbH, NatPack, El Safa Plast Mold and Plastic Factory, and Tetra Pak International SA. Companies operating in the region are focused on expanding their business through innovations, collaborations, acquisitions, mergers, etc.
- June 2024: Bericap Holding GmbH, operating across multiple regions globally, including Egypt, strategically expanded its footprint. The company inaugurated new production facilities in Africa, South America, and South East Asia. Specifically, Bericap established fresh plants in Nairobi, Kenya, and Ho Chi Minh City, Vietnam. Additionally, it acquired production facilities in Lima, Peru, and Durban, South Africa. With these additions, Bericap boasts an impressive network of 30 production sites spanning 25 countries. This move underscores the company's commitment to providing enhanced project support, logistics, and services near its global clientele.
Egypt Plastic Caps and Closures Market Leaders
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Amcor Plc
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Tetra Pak International S.A.
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Bericap Egypt
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NatPack
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El Safa Plast Mold and Plastic Factory
*Disclaimer: Major Players sorted in no particular order
Egypt Plastic Caps and Closures Market News
- May 2024: Otsuka Pharmaceutical Co. Ltd and Egyptian affiliate Arab Otsuka Nutraceuticals Co. SAE (AON) announced the launch of ORONAMIN C drink (ORONAMIN C) sales in Egypt. Over recent years, with the growth in the Egyptian population, health awareness has become more prevalent in the country. The company established AON as a new company in May 2023 to market ORONAMIN C in Egypt to meet these demands. By introducing this nutritional drink to the market, the company aims to support the Egyptian people's healthy lifestyles.
- January 2024: Cairo-based beauty and wellness startup Mira secured a USD 200,000 investment from Wingoo Investment and Technology. The funding aims to propel Mira beyond the continent and bolster its customer base. This investment closely follows Mira's debut of its first locally-produced beauty product in late 2023, set for a later release this year. By the year's end, Mira aims to solidify its position as a prominent Egyptian brand with a loyal following. After that milestone, the startup plans to explore further investments to expand. Such investments are expected to push the cosmetics market, leveraging the caps and closures market.
Egypt Plastic Caps and Closures 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 Buyers
4.2.2 Bargaining Power of Suppliers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Rise in Demand For Plastic Products From the Food and Beverage Industries
5.2 Market Restraints
5.2.1 Rising Government Regulations and Environmental Concerns
6. INDUSTRY REGULATION, POLICY AND STANDARDS
7. MARKET SEGMENTATION
7.1 By Resin
7.1.1 Polyethylene (PE)
7.1.2 Polyethylene Terephthalate (PET)
7.1.3 Polypropylene (PP)
7.1.4 Other Plastic Materials (Polystyrene, PVC, Polycarbonate, etc.)
7.2 By Product Type
7.2.1 Threaded
7.2.2 Dispensing
7.2.3 Unthreaded
7.2.4 Child-resistant
7.3 By End-user Industry
7.3.1 Food
7.3.2 Bevrage
7.3.2.1 Bottled Water
7.3.2.2 Carbonated Soft Drinks
7.3.2.3 Alcoholic Beverages
7.3.2.4 Juices & Energy Drinks
7.3.2.5 Other Beverages
7.3.3 Personal Care & Cosmetics
7.3.4 Household Chemicals
7.3.5 Other End-user Industries
8. COMPETITIVE LANDSCAPE
8.1 Company Profiles*
8.1.1 NatPack
8.1.2 El Safa Plast Mold and Plastic Factory
8.1.3 Bericap Egypt
8.1.4 Tetra Pak International SA
8.1.5 Amcor Plc
8.1.6 Delta Egypt Plastic - Delpack SAE
9. RECYCLING & SUSTAINABILITY LANDSCAPE
10. MARKET FUTURE OUTLOOK
Egypt Plastic Caps and Closures Industry Segmentation
The scope of the study characterizes the plastic caps and closures market based on the product's raw materials, including PP, PE, PET, and other raw materials used across various end-user industries, such as food, pharmaceuticals, beverages, cosmetics, toiletries, and more across the country. The research also examines underlying growth influencers and significant industry vendors, all of which help to support market estimates and growth rates throughout the anticipated period. The market estimates and projections are based on the base year factors and arrived at top-down and bottom-up approaches.
The Egyptian plastic caps and closures market is segmented by resin (polyethylene (PE), polyethylene terephthalate (PET), polypropylene (PP), and other plastic materials), product type (threaded, dispensing, unthreaded, and child-resistant), end-user industry (food, beverage [bottled water, carbonated soft drinks, alcoholic beverages, juices & energy drinks, and other beverages], personal care and cosmetics, household chemicals, and other end-user industries). The report offers market forecasts and size in volume in units and value in USD for all the above segments.
| By Resin | |
| Polyethylene (PE) | |
| Polyethylene Terephthalate (PET) | |
| Polypropylene (PP) | |
| Other Plastic Materials (Polystyrene, PVC, Polycarbonate, etc.) |
| By Product Type | |
| Threaded | |
| Dispensing | |
| Unthreaded | |
| Child-resistant |
| By End-user Industry | |||||||
| Food | |||||||
| |||||||
| Personal Care & Cosmetics | |||||||
| Household Chemicals | |||||||
| Other End-user Industries |
Egypt Plastic Caps and Closures Market Research FAQs
How big is the Egypt Plastic Caps And Closures Market?
The Egypt Plastic Caps And Closures Market size is expected to reach USD 0.34 billion in 2024 and grow at a CAGR of 5.77% to reach USD 0.45 billion by 2029.
What is the current Egypt Plastic Caps And Closures Market size?
In 2024, the Egypt Plastic Caps And Closures Market size is expected to reach USD 0.34 billion.
Who are the key players in Egypt Plastic Caps And Closures Market?
Amcor Plc, Tetra Pak International S.A., Bericap Egypt, NatPack and El Safa Plast Mold and Plastic Factory are the major companies operating in the Egypt Plastic Caps And Closures Market.
What years does this Egypt Plastic Caps And Closures Market cover, and what was the market size in 2023?
In 2023, the Egypt Plastic Caps And Closures Market size was estimated at USD 0.32 billion. The report covers the Egypt Plastic Caps And Closures Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Egypt Plastic Caps And Closures Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Egypt Plastic Caps and Closures Industry Report
Statistics for the 2024 Egypt Plastic Caps And Closures market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. Egypt Plastic Caps And Closures analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Egypt Plastic Caps and Closures Market Report Snapshots
