GCC Labeling Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

GCC Labeling Market Analysis

The GCC Labeling Market size is estimated at USD 715.90 million in 2024, and is expected to reach USD 975.93 million by 2029, growing at a CAGR of 5.30% during the forecast period (2024-2029).

Technological advancements and the digital shift have strengthened the importance of labeling. As lifestyles evolve, the call for faster, automated labeling solutions intensifies. Driven by a growing appetite for convenient, high-quality food, consumers are turning to packaged options. These choices necessitate clear labeling, including nutritional information and expiry dates, fueling the demand for labels in the region.

GCC countries are diversifying their economies beyond oil and gas, leading to the growth of various industries such as retail, food and beverages, pharmaceuticals, and logistics. These industries require extensive labeling for product identification, branding, and compliance. As of March 2023, data from the National Committee of Dairy Producers in the Federation of Saudi Chambers (FSC) revealed a surge in dairy consumption during Ramadan. Saudi Arabia's milk production peaked at over 7 million liters daily, translating to more than 18 million bottles. The logistics were equally impressive, with over 10,000 trucks ferrying dairy products daily, servicing a network of 38,000 retail outlets. Such expansion in the food industry may further propel the growth of the market studied.

The development of digital printing technology is rapidly penetrating the labeling market due to its cost-effectiveness and high-quality printing on industrial-sized digital presses. Digital technologies, such as digital printing, UV inkjet, and water-based inkjet, are becoming increasingly sophisticated. Additionally, digital printing technology is witnessing demand across all consumer goods industries, including foods, beverages, and pharmaceuticals. The market is driven by continued increases in order volumes, lower supply-side inventory levels, shorter lead times to fulfill order volumes, and lower costs.

The rapid expansion of e-commerce platforms demands efficient and scalable labeling solutions for order fulfillment, inventory management, and logistics. Accurate labeling ensures smooth operations and enhances the customer experience. In addition, a Dubai Chamber of Commerce study revealed that the UAE e-commerce market is expected to be worth USD 9.2 billion in 2026. Growth momentum within the UAE e-commerce industry is supported by growing demand for online shopping and steady investment flows in the industry's infrastructure.

Furthermore, the increasing need for packaged perishable goods is expected to boost label sales in the coming years. The growth of the organized retail industry is a crucial driver for the label market. Retailers rely on labels to track product freshness, with smart labels proving particularly valuable for inventory management. These labels efficiently track inventory, especially as retailers adhere to stock-keeping unit protocols.

The UAE Telecommunications and Digital Government Regulatory Authority (TDRA) introduced a revised label format in January 2023. While all new certificates must feature this new label, businesses can retain the old label or adopt the new one for product renewals. These labels are to be prominently displayed on the packaging of approved products and in retail stores.

The label market encounters challenges due to evolving regulatory requirements, which mandate producers adjust labeling practices regularly. The complexity of the global supply chain makes flexible labeling solutions necessary. Moreover, rising consumer expectations for personalized, visually appealing labels necessitate innovative design approaches, amplifying design difficulties. Given the persistent threat of counterfeiting, stringent security measures are essential.

The Russia-Ukraine War has resulted in economic and supply chain disruptions, which have impacted the packaging industry and, in turn, the labeling market. Moreover, the conflict between Russia and Ukraine caused disruptions in trade dynamics. Furthermore, the war increased oil prices, leading to higher inflation and contracting economies worldwide. According to the Center for Strategic and International Studies, Russia's invasion of Ukraine left few new agricultural markets and threatened people's food security across the Middle East. The war restricted food exports from Ukraine and Russia, impacting the packaging industry. However, the GCC countries, which import up to 90% of their food, have so far weathered the influence of Russia's war with Ukraine.

GCC Labeling Market Trends

The Food Sector Significantly Driving the Market Growth

GCC Labeling Industry Segmentation

Labeling encompasses creating and applying labels on a product's outer packaging. They convey vital information and features of the product. 

The GCC labeling market is segmented by type (pressure sensitive labels, shrink labels, in-mold labels, and other types), print technology (offset printing, gravure printing, flexographic printing, and other print technologies), end users (food, beverage, healthcare, cosmetics and personal care, industrial), and country (the United Arab Emirates, Saudi Arabia, Qatar, and Rest of GCC). The disturbance of the factors affecting the market's evolution in the near future, as well as drivers and constraints, has been covered in the study. The market sizes and forecasts are provided in terms of value (USD) for all the above segments.