Market Trends of GCC Folding Carton Industry
Food Industry to Witness Growth in the Region
- The United Arab Emirates and Saudi Arabia are the primary food markets in the region. Saudi Arabia's food industry remains one of the most robust sectors in the overall economy. Saudi Arabian consumers are increasingly becoming savvy regarding food as their demand for new products with a strong focus on health is growing.
- The region is witnessing a rise in the consumption of processed food, fresh produce, and meat sectors. New food growth in the country continues to be fueled by health and wellness trends and the increase in consumers' ethical concerns.
- Additionally, population growth would be the key driver behind the demand for fresh food during the forecast period. A trend for organically produced foods would increase the presence of sustainable fresh food at premium price points in modern grocery retailers.
- Due to the surging demand for sustainable packaging in the processed food sector, regional players are opening new outlets to become one-stop shops for all packaging needs. For instance, in August 2022, Hotpack Global, the UAE-based leading food packaging manufacturer, opened an exclusive retail showroom in Riyadh as part of the company's aggressive growth strategy. The new showroom is Hotpack's 45th sales outlet in the (Middle East and North Africa) MENA region, and the company has more extensive plans to expand its operations across the region.
- Consumer lifestyles in the region are increasing demand for ready-to-eat (RTE) foods. According to Napco National, a Saudi packaging company, the rise of RTE and grab-and-go meals are shaping the future of the country's food packaging trends. Moreover, the preference for processed and packaged foods has boosted the food packaging market in Saudi Arabia due to rapidly-developing lifestyles and economic growth, coupled with the rising population.
Understand The Key Trends Shaping This Market
Download PDF
United Arab Emirates is Expected to be the Largest Market
- The food habits of the studied geographical expanse are changing owing to the increasing adult population. According to IMF, by 2029, approximately 10.15 million inhabitants would live in the UAE. Increasing ex-pats in the country and packaging or ready-to-eat food substitute three-course meals. This has given rise to more inclination toward packaging. Government and private packaging firms have been switching to paper-based bio-degradable solutions in recent years, increasing the demand for folding cartons.
- The players operating in the region are collaborating to increase the overall collection and recycling of used beverage cartons (U.B.C.). For instance, In November 2022, Tetra Pak, a food processing and packaging company, signed a Memorandum of Understanding (MoU) with Union Paper Mills (U.P.M.), the U.A.E.'s paper recycler and a subsidiary of M.A.H.Y KhooryGroup of Companies, at GulfoodManufacturing 2022, to increase the overall collection and recycling of used beverage cartons (U.B.C.). According to the M.O.U., Tetra Pak, a company in Switzerland, will assist U.P.M. by providing U.B.C. recycling capabilities and the required technologies to modify a pulping line that will be built and run at U.P.M. facilities in Dubai.
- Also, since the ban on single-use plastic, the players are focusing on finding products that can be recycled and reused for packaging. The demand for biodegradable packaging papers will support market growth. For instance, in December 2022, The development of a new plant to produce recycled Kraft Paper Jumbo reels was announced by Khalifa Economic Zones Abu Dhabi (KEZAD Group), broadening the company's product line to meet the UAE's rising need for biodegradable packaging materials.
- Moreover, rising retail focus on dairy products and government initiatives toward encouraging the consumption of dairy products would further drive folding cartons in the UAE dairy products market. According to the report issued by the Business Registration & Licensing (BRL) sector of Dubai's Economy, the Emirate of Dubai has about 583 local and international companies engaged in dairy production including yogurt, cheese, natural butter, and cream, the manufacture and packaging of milk and dairy products; as well as food and dairy counseling.
- UAE is one of the region's most important personal care products markets due to its large population. It is becoming the local hub for the beauty and skincare industry. Moreover, the rise of beauty encouragement is heightened by social media exposure that encourages word of mouth and is thus a valuable marketing tool.
Get Analysis on Important Geographic Markets
Download PDF
