Middle East & Africa Paper Bags Market Size (2024 - 2029)

Middle East & Africa Paper Bags Market Analysis

The Middle East & Africa Paper Bags Market size is estimated at USD 478.5 million in 2024, and is expected to reach USD 617.40 million by 2029, growing at a CAGR of 5.20% during the forecast period (2024-2029).

• Restaurants, hotels, cafes, and catering establishments are witnessing a surge in the adoption of paper bags. This trend is further fueled by the rising preference for on-the-go dining and the rise in online grocery deliveries. The changing lifestyle dynamics in Middle Eastern countries are notably amplifying the demand for paper-based packaging in the food service sector. Today's consumers prefer convenient, on-the-go food options, looking for a fast energy boost. Additionally, the environmental benefits of paper bags, such as biodegradability and recyclability, are driving their popularity among eco-conscious consumers.
• Further, urbanization has led to a significant shift in consumer behavior. Modern consumers spend more time away from home at social gatherings, outdoor events, or sports activities. Consequently, the demand for on-the-go food options is on the rise. This trend is also supported by the increasing availability of diverse and healthy food choices that cater to the fast-paced lifestyle of urban dwellers.
• Government regulations aimed at curbing plastic usage are propelling the paper bag market in the region. In line with its sustainability goals, the United Arab Emirates planned to ban single-use plastic bags starting in January 2024. This initiative is driven by Ministerial Resolution No. 380 of 2022, which regulates and mandates the phasing out of single-use plastic products, including plastic bags. The United Arab Emirates is also eyeing a ban on Styrofoam containers, commonly found in takeaway food packaging, slated for 2026.
• The momentum is further evident as the Ajman Municipality and Planning Department have already taken steps to announce a ban on plastic bags. Additionally, the Emirates observes an annual 'Plastic Bag Free Day' on May 16, emphasizing its commitment to reducing plastic waste. These measures reflect a broader regional trend toward sustainable packaging solutions, driving demand for paper bags and other eco-friendly alternatives.
• Also, the paper bags market in Saudi Arabia is poised for growth, as several companies are ramping up their operations in the region. LuLu hypermarkets made a significant move by unveiling a range of reusable and paper bags in all its Saudi stores. This initiative aligns with a larger strategy to combat plastic usage and champion environmental conservation. LuLu's proactive stance coincides with Saudi National Day, positioning it as a pioneer among the Kingdom's hypermarkets and setting the stage for increased adoption of eco-friendly paper bags.
• While reliable and easily transportable paper products have existed for some years, their longevity has brought challenges. Paper bags, primarily crafted from cellulose fibers, can be sourced from either virgin materials or recycled from trees. The paper industry grapples with escalating raw material costs and supply bottlenecks. Fluctuations in raw material availability and costs in the region have significantly disrupted and delayed the growth of the packaging market. Intense price competition has compelled vendors to slash prices, aiming to stay competitive and affordable.

Middle East & Africa Paper Bags Industry Segmentation

Paper bags, crafted from renewable and biodegradable wood pulp, primarily sourced from trees, are a staple in the packaging industry. The most prevalent types of paper used in their production are Kraft paper and initiation Kraft paper. These bags find widespread applications as shopping carriers, packaging solutions, and even as sacks. To enhance their durability, paper bags are increasingly manufactured with multiple walls, making them ideal for storing and transporting various goods, ranging from food and beverages to animal feed. These bags are often equipped with twisted or flat handles for easy handling. Notably, the retail sector heavily relies on paper bags for customers' shopping needs.

The Middle East and African paper bags market is segmented by type (white kraft and brown kraft), end-user type (retail, food, construction, agriculture & chemical, and other end-user types), and country (United Arab Emirates, Saudi Arabia, South Africa Nigeria, and Rest of Middle East & Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.