Market Trends of GCC Shrink Sleeves Industry
This section covers the major market trends shaping the GCC Shrink Sleeves Market according to our research experts:
Polyethylene Terephthalate (PET) Material to Drive the Market Growth
- The advantages offered by PET material include print that is protected from discoloration and damage from liquid spills due to the reverse printing on the sleeve, scuff-resistant cover for the print, which contributes to the growth of the PET shrink sleeves market in the region.
- Saudi Arabia currently recycles about 10% of its PET (polyethylene terephthalate) bottles. The recycling percentage is expected to grow with the increasing focus of the government toward recycling, which is likely to drive the demand for PET in the country.
- On the other hand, the United Arab Emirates is home to more than 100 different nationalities and a mix of various cultures and cuisines. These differences are strongly reflected by the food available in the country, especially in relation to sauces, dressings, and condiments, and with the growth of the food industry, the shrink sleeves labels industry also witnesses growth.
- 2018 saw the introduction of 5% VAT across a wide range of products and services and declining consumer confidence, while currency exchange rates made it more expensive for tourists to purchase beauty and personal care products. Thus, this decreased the growth of PET shrinks sleeves labels in the United Arab Emirates.
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Saudi Arabia is Expected to Witness a Significant Growth
- Increased beauty and personal care awareness in Saudi Arabia due to the growing number of Saudis joining the workforce, higher disposable incomes per household, ongoing social gatherings, and participation in physical activities (due to government efforts to combat illness and promote healthy lifestyles) have resulted in increased sales of such products to some consumers. Thus, this supports shrink sleeves labels demand, despite a slight fall in overall volumes in 2018.
- Additionally, the increasing applications of shrink and sleeves in various end-use industries, such as paper and textile, food and dairy, and electronics, for labeling are expected to drive the market growth further.
- Changing consumer lifestyles and government efforts to diversify the economy and create jobs for locals influence the development of packaging in Saudi Arabia. The end of the review period saw Saudi Arabia suffer an economic slowdown due to its heavy reliance on revenues from oil exports, which saw prices fall globally.
- In FY 2019, the Saudi government introduced a 17% increase, an estimated USD 45.86 billion, in the funds allocated for healthcare and social development. Out of these allocated funds, approximately USD 12.72 billion has been earmarked for being spent on healthcare projects directly linked to Saudi Arabia’s Vision 2030. The developments in the markets for healthcare, pharmaceuticals, and cosmetics are expected to remain the primary drivers of the demand for plastic packaging products.
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