MEA Contract Packaging Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 9.38 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
MEA Contract Packaging Market Analysis
The Middle East and Africa contract packaging market are expected to register a CAGR of 9.38% over the forecast period. Lockdown and social norms that encourage distance have caused the contract packaging market in e-commerce to explode. In order to keep up with the growing demand, businesses outsource their packaging end-to-end or standalone services to consumers who prefer to shop online.
- Bottling and filling services have particularly experienced promising growth in the Middle East and Africa. Owing to the increased demand for food, beverage, and pharmaceutical needs during the COVID pandemic and the resulting demand for contract packaging, many businesses also outsourced their packaging for increased safety.
- Over the upcoming years, injectables are anticipated to gain a market share that surpasses that of other administration methods, such as oral. As a result, contract packaging demand for injectable solutions is expected to rise, and significant pharmaceutical vendors are anticipated to increase their regional capabilities.
- Many regional brands opt for co-packing instead of building their manufacturing operations, including food safety and the need for financial and business agility. Co-packers play an essential role for ample food and beverage companies in the region that may not be able to justify spending on new equipment or divert production from equipment to produce new and less profitable products.
- However, the growing demand for in-house packaging is anticipated to affect the market growth for contract packaging negatively. For instance, businesses that use outside contract packagers can extend their distribution cycle by up to seven days, during which their product is less visible. Companies looking to distribute their goods quickly and effectively may find this a barrier.
- The outbreak of the COVID-19 pandemic, the contract packaging market has seen tremendous growth, as the e-commerce market has exploded due to lockdown and social distancing norms, with the majority of consumers preferring online channels for shopping, and companies have been outsourcing their packaging end to end or standalone services to meet the growing demand.
MEA Contract Packaging Market Trends
This section covers the major market trends shaping the MEA Contract Packaging Market according to our research experts:
Increase in Demand in E-Commerce will Significantly Drive the Market
- E-commerce packaging companies are significant adopters and drivers of modern technology. The increasing number of e-commerce companies across the globe is also fueling the demand for packaging solutions by the industry to cater to the needs of customers in a better way.
- Additionally, with high variability requirements from Consumer packaged goods (CPGs) providers, customization along with speed in the supply chain creates a challenge for product offering companies via e-commerce, thus escalating the requirements from contract packaging companies for a customized e-commerce packaging solution, as they are built for flexibility, agility, and resourcefulness.
- Contract packers and fulfillment service providers operate on a smaller scale with limited volumes and fewer people involved in decision-making. As a result, they can implement e-commerce-ready packaging innovations more quickly. Furthermore, collaborating with e-commerce companies can shorten the path to optimized packaging for this rapidly growing channel.
- The contract packaging services market in the region will to grow due to the growth of the e-commerce and food and beverage industries. According to Visa Middle East, the United Arab Emirates is considered the most advanced e-commerce market in MENA, with a penetration rate of 4.2%. E-commerce sales in the United Arab Emirates are estimated to reach USd 27.08 billion in 2021 from USD 12.34 billion in 2018 . This increases the need for corrugated contract packaging services in the country and the rest of the world.
Beverage Industry to Witness Significant Growth
- The increasing demand for essential infrastructure to process, beverage, and juice manufacturers started focusing more on core activities. Manufacturers are looking forward to packaging vendors with a dedicated area to store the raw material by providing the right technical expertise and timely and cost-effective solutions while keeping in mind hygienic processing standards, which has given rise to the demand for contract beverage packaging services in the region.
- Many new-age beverages have widespread distribution but limited volume, necessitating multiple manufacturing locations for volumes far too small to justify plant involvement. Due to the high demand for hot-fill products, large corporations with well-known brands have turned to contract packers to meet their production requirements.
- Contract manufacturers also provide bundling services such as bottling and filling, pallet displays, promotional packaging, product displays, custom assembly, manual packaging, etc., for cans, bottles, jars, cartons, and others. The food, beverage, and pharmaceutical industries are some of the biggest adopters of primary packaging. Therefore, the growth in the overall production capacity of these industries is expected to drive the adoption of primary contract packaging services across the region.
MEA Contract Packaging Industry Overview
The Middle East and Africa Contract Packaging market are moderately fragmented. The development of regional markets and increasing shares of local players in foreign direct investments are the major factors promoting the fragmented nature of the market.
December 2021 - Paperboard packaging solutions provider Premier Packaging is expected to start operations at the new facility in February 2022.The step will more than double Premier Packaging's operating space to over 105,000ft^2 from approximately 42,000ft^2.
MEA Contract Packaging Market Leaders
Multipack
Sharp Packaging Services
Premier Packaging
TricorBraun
MJS Packaging
*Disclaimer: Major Players sorted in no particular order
MEA Contract Packaging Market News
- April 2022 - Matrix Adhesives Group, a Goldner Hawn portfolio company acquired Lohnpack Contract Filling, Inc. The acquisition of Lohnpack will expand Matrix's capabilities while strengthening its commitment to provide a broad suite of formulating, compounding, manufacturing, and contract packaging solutions to its customers.
MEA Contract Packaging Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industrial Value Chain Analysis
4.3 Industry Attractiveness - Porter's 5 Force Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat from new entrants
4.3.4 Threat of Substitute Products
4.3.5 Competitive rivalry within the industry
4.4 Industry Policies
5. MARKET DYNAMICS
5.1 Introduction
5.2 Market Drivers
5.2.1 Rapid Technology Advancements
5.2.2 Development in the Retail Chain
5.3 Market Restraints
5.3.1 Increasing cost of Raw material and Packaging products
6. MARKET SEGMENTATION
6.1 By Service
6.1.1 Primary Packaging
6.1.2 Secondary Packaging
6.1.3 Tertiary Packaging
6.2 By Vertical
6.2.1 Beverages
6.2.2 Food
6.2.3 Pharmaceuticals
6.2.4 Home and Fabric Care
6.2.5 Beauty Care
6.2.6 Others
6.3 By Country
6.3.1 United Arab Emirates
6.3.2 Saudi Arabia
6.3.3 South Africa
6.3.4 Others
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Berkeley Contract Packaging
7.1.2 Central Glass
7.1.3 Unicep
7.1.4 MJS Packaging
7.1.5 Stamar Packaging
7.1.6 TricorBraun
7.1.7 Premier Packaging
7.1.8 DHL
7.1.9 Sharp Packaging Services
7.1.10 Multipack
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OUTLOOK OF THE MARKET
MEA Contract Packaging Industry Segmentation
Contract packaging is the process of assembling a product or good into its final finished packaging. Depending on the product, the final packaging constitutes various forms, such as thermoformed/ plastic clamshell or blister packaging, a plastic bag, a standing corrugated retail point-of-sale display, or a transport tray. Sometimes, contract packagers are tasked with something as simple as adding a bar code sticker to a product or as complex as planning, designing, producing, and fulfilling the entire package.
The Middle East and Africa Contract Packaging market are segmented by Service ( Primary Packaging, Secondary Packaging, Tertiary packaging), by End-User Vertical ( Beverages, Food, Pharmaceuticals, Home and Fabric Care, Beauty Care), and by Country.
| By Service | |
| Primary Packaging | |
| Secondary Packaging | |
| Tertiary Packaging |
| By Vertical | |
| Beverages | |
| Food | |
| Pharmaceuticals | |
| Home and Fabric Care | |
| Beauty Care | |
| Others |
| By Country | |
| United Arab Emirates | |
| Saudi Arabia | |
| South Africa | |
| Others |
MEA Contract Packaging Market Research FAQs
What is the current Middle East and Africa Contract Packaging Market size?
The Middle East and Africa Contract Packaging Market is projected to register a CAGR of 9.38% during the forecast period (2024-2029)
Who are the key players in Middle East and Africa Contract Packaging Market?
Multipack, Sharp Packaging Services, Premier Packaging, TricorBraun and MJS Packaging are the major companies operating in the Middle East and Africa Contract Packaging Market.
What years does this Middle East and Africa Contract Packaging Market cover?
The report covers the Middle East and Africa Contract Packaging Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Middle East and Africa Contract Packaging Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Middle East and Africa Contract Packaging Industry Report
Statistics for the 2024 Middle East and Africa Contract Packaging market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Middle East and Africa Contract Packaging analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
