Market Trends of Middle East And Africa Single-use Plastic Packaging
Quick Service Restaurants to Hold Significant Market Share
- As technology reshapes the food industry and garners investments, the appetite for single-use plastic packaging is set to surge. The rise of online delivery platforms, mobile apps, and QSRs fuels this growth. In the Gulf region, many diners are turning to smartphone apps for meal orders, a trend poised to escalate alongside the surge in online food services. This shift broadens the reach of many small, standalone eateries. It amplifies the need for single-use plastic packaging, especially with the expanding presence of QSRs like food trucks venturing into online deliveries. Also, these technologies' convenience and efficiency drive consumer preference toward online food ordering, creating a robust market for single-use plastic packaging.
- Quick service restaurants (QSRs) prioritize fast service and affordability, often with minimal table service and a strong focus on self-service. Customers typically pay for their food and beverages before consumption. In recent years, the regional foodservice sector, particularly in these countries, has seen a surge in international QSR chains and local brands, catering to evolving consumer tastes with diverse cuisines. This growth is driven by urbanization, increasing disposable incomes, and a rising consumer preference for convenience. Additionally, technological advancements in food delivery services and digital ordering platforms have further fueled the expansion of the QSR sector.
- Single-use foodservice packaging has become a cornerstone of the region's fast-paced lifestyle, particularly in quick service restaurants (QSRs). As home meal preparation time dwindles, many turn to fast food. These single-use packages enable food establishments to efficiently and safely package meals, offering customers a convenient way to transport their food.
- Further, the franchise model is set to play a pivotal role in propelling the growth of QSR chains, thereby driving market expansion in the region. Regional authorities actively offer incentives to franchisees and franchisors, aiming to entice international brands and investors. These incentives are designed to facilitate their entry into the market, often in collaboration with seasoned local players. For instance, McDonald's, a prominent global fast-food chain, has steadily increased its store count annually. Starting at 1,650 stores in 2021, the company's footprint reached 1,880 by 2023.
- Several online food delivery companies are eyeing the Middle East to broaden their regional footprint. In April 2023, Deliveroo, a prominent food delivery app, expanded its operations to encompass the UAE, Kuwait, and Qatar. Having initially entered the Middle East through the UAE, Deliveroo aims to bolster its growth by amplifying its network of cloud kitchens.
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Saudi Arabia is Expected to Witness Significant Growth
- The Saudi Arabian tourism sector is witnessing a notable shift as both public and private entities collaborate to broaden the Kingdom's tourist demographics and redefine the focus of tourism, moving beyond its traditional emphasis on business and religious travel. Projections from the World Travel and Tourism Council suggest that Saudi Arabia's travel and tourism industry is set to expand at an average annual rate of 11% over the next decade, positioning it as the Middle East's most rapidly growing market. This growth trajectory is poised to reshape the region's food and beverage landscape and align with Saudi Arabia's broader modernization and economic diversification strategies.
- The country’s changing social landscape indicates a solid long-term growth opportunity for the QSR industry. People are eating out more as many new entertainment options open. The nation’s leaders are aggressively pursuing strategies promoting greater inclusion of women in the workplace. Moreover, the trend of using more miniature packs to reduce packaging volumes is rising due to a simultaneous move toward single-serve packs in many end-user sectors, particularly the food and beverage sectors. This shift is driven by consumer demand for convenience and portion control, reshaping packaging strategies across the industry.
- The foodservice industry in Saudi Arabia prominently features a blend of local cuisine and well-known global brands. Notably, the fast-food domain, dominated by industry giants such as McDonald's, Subway, and KFC, epitomizes this fusion. As a result, there is a surging requirement for disposable packaging. This surge is primarily fueled by the convenience and practicality that disposable packaging provides, aligning with the swift pace of consumer lifestyles. Moreover, the rise of online food delivery services has heightened the urgency for dependable and eco-friendly packaging options.
- As the food and beverage industry expands, the growing number of food outlets in Saudi Arabia, rising from 77,431 in 2017 to 84,596 in 2023 and projected to hit 90,791 by 2025, highlights the pressing need for food service packaging that meets consumer preferences and regulatory standards. This outlet surge directly correlates with heightened consumption demands, driving the demand for various disposable food packaging solutions. The expansion of food outlets underscores the urgency for innovative and sustainable packaging solutions to cater to the evolving market dynamics.
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