Market Trends of Middle East & Africa Glass Bottles And Containers Industry
Pharmaceuticals Segment is Expected to Register the Highest Market Share
- The healthcare industry has implemented stringent regulations for drug delivery products in the MENA region, underscoring the rising significance of biotech and price-sensitive medications. Many businesses in the pharmaceutical glass manufacturing sector are channeling investments into pharmaceuticals, emphasizing packaging solutions designed to prolong product shelf life.
- Regional governments are fostering public-private collaborations to bolster healthcare infrastructure and services. Major pharmaceutical players are deepening their presence in the Middle East, with Saudi Arabia (KSA), the United Arab Emirates (UAE), and South Africa spearheading these initiatives, thereby propelling market growth.
- Moreover, several firms are eyeing expansions to boost local production of essential medications in Middle Eastern nations, which is driving the demand for container glass. In September 2024, AstraZeneca Egypt unveiled a USD 50 million investment plan for pharmaceutical production in Egypt. Currently churning out 900 million tablets annually, AstraZeneca aims to ramp up production to 1.29 billion, fueling the demand for glass containers in the region.
- Data from the International Trade Administration highlights that Saudi Arabia represents 60 percent of the healthcare expenditure among Gulf Cooperation Council (GCC) nations. With the Saudi government eyeing privatization in the healthcare sector, a surge in product demand is anticipated. In 2023, the government allocated a substantial USD 50.4 billion to healthcare, aiming to drive innovation.
- Furthermore, insights from the Saudi Food & Drug Authority (SFDA) point to advancements in clinical trials and the integration of artificial intelligence in manufacturing as pivotal drivers of Saudi Arabia's burgeoning pharmaceutical market, thus bolstering market growth. The pharmaceutical market’s value surged from USD 5.4 billion in 2021 to USD 8.5 billion in 2023, fueled by population growth and an escalating demand for chronic disease treatments in the country.
Understand The Key Trends Shaping This Market
Download PDF
South Africa is Expected to Experience Significant Growth
- According to the US Department of Agriculture (USDA), South Africa stands out as one of Africa's most developed and diverse economies. It boasts a robust business sector and sophisticated distribution networks that cater to its major urban centers and the broader Southern African region. With its skilled market economy and established food and beverage distribution channels, South Africa sees a heightened demand for glass packaging.
- Moreover, the surging consumption of alcoholic beverages in South Africa plays a pivotal role in driving this demand. Data from IWSR, a London-based information services firm, revealed that in 2023, beer consumption in South Africa surged by 9%. This uptick was attributed to the rapid urban expansion and the migration of younger populations to major cities, making alcoholic beverages more accessible.
- South African glass packaging manufacturers such as Ardagh Group SA actively showcase their products at trade shows and expos to bolster their market presence. In November 2023, Ardagh Group SA participated in the "Made in Africa" exhibition in Johannesburg, aiming to stimulate further investments in the region. The company has already expanded two of its glass packaging production facilities in Africa and is keen on further investments to bolster the South African glass industry.
- Rising consumer spending in South African restaurants and cafes has led to a heightened demand for container glass products such as bottles and bowls, propelling market growth. Statistics South Africa reports that food sales from restaurants and coffee shops jumped from USD 143.87 million in January 2024 to USD 156.04 million in March 2024.
Get Analysis on Important Geographic Markets
Download PDF
