Market Trends of Egypt Rigid Plastic Packaging Industry
Polyethylene Terepthalate (PET) Segment is Estimated to Have the Largest Market Share
- PET is crucial in the rigid packaging industry, especially for producing microwavable food trays and plastic bottles. These bottles serve a range of products, from soft drinks and water to ketchup and salad dressings. Industries such as home care, beverages, and personal care are increasingly turning toward the usage of PET bottles. This trend is driven by shifting consumer preferences and the benefits of PET, notably its lightweight nature and high recycling rate.
- In Egypt, manufacturers such as Alpla Group, Bericap Holding GmbH, and Amcor GmbH prioritize developing sustainable and innovative rigid plastic packaging solutions. For example, in May 2024, Alpla Group, an Austrian company with a presence in Egypt, unveiled a recyclable PET wine bottle. This 0.75-litre bottle, weighing only 50 grams, is about eight times lighter than its glass counterpart.
- As Egypt's food service industry expands, so does the demand for PET-made packaging solutions such as jars, bottles, and containers. The rise of online food and beverage retail platforms and rapid delivery services further fuels this demand. The entry of international food chains such as KFC, Pizza Hut, and Starbucks amplifies the need for takeaway services, which predominantly use PET packaging.
- Egypt's diverse industries, from food and beverages to personal care, heavily utilize plastic, positioning the country as a significant exporter of plastic products. Data from UN Comtrade highlighted this trend, showing Egypt's plastic product exports rose from USD 127.35 million in 2021 to USD 140.37 million in 2023.
Understand The Key Trends Shaping This Market
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Food Segment Expected to Hold High Market Share
- Despite facing economic challenges, Egypt welcomed 14.9 million tourists in 2023, as the US Department of Agriculture (USDA) reported. This influx set a new record for the nation and represented a 33% increase in Egypt's share of global tourism compared to 2019. By the close of 2023, Egypt had approximately 1,400 tourist restaurants. Egypt’s Minister of Tourism highlighted that this surge in tourism led to a notable uptick in food consumption across the country's hotels, restaurants, and various food service chains.
- Shifting consumer preferences fuel Egypt's rising appetite for convenience and ready-to-eat food products. The uptick in both local and imported consumer goods can be linked to the country's time-constrained middle class. For many, instant noodles and ready-to-eat frozen meals, often packaged in rigid plastic, serve as convenient dinner solutions. As packaged food products gain traction in Egypt, there is a corresponding surge in demand for plastic trays and containers.
- Changing consumer inclinations towards premium chocolate products, especially those utilizing rigid packaging such as trays and containers, make Egypt a prime market for confectionery manufacturers. Furthermore, the nation's booming e-commerce sector plays a pivotal role in driving confectionery sales, further fueling market expansion.
- Egypt's food exports, responding to rising consumer demand, are a significant catalyst for market growth. As reported by Ahram Online, an Egyptian newspaper, food exports surged from USD 43 billion in 2022 to USD 51 billion in 2023, marking an impressive 18.60% increase. This growth in exports amplifies the demand for rigid packaging solutions within the country.
