Market Trends of MEA Plastic Bottles And Containers Industry
The Beverages Segment is Expected to Witness Significant Growth
- The demand for health drinks is expected to increase, influenced by the campaigns led by the ministries of health in various countries in the region. Due to the ban on alcohol in many countries in the region, soft drinks, such as energy and health drinks, are considered substitutes. Also, according to the World Travel Market article published in March 2023, more than alcohol, Gen Z consumers prefer newer categories of drinks like mocktails, cannabis-infused drinks, kombucha, and new soda.
- The demand for bottled water increased significantly in the region. In addition, consumers are more conscious of the need for healthier diets. The increased demand for bottled water, in turn, is expected to augment the growth of the bottled water packaging market in the region. Moreover, there is a significant demand for PET bottles for water and other soft drinks packaging. For instance, Almarai developed its business through strategic investments.
- Moreover, the emergence of biodegradable plastics is also expected to impact the growing consumer markets. According to Sidel, the demand for healthier products and sustainability are the two biggest trends impacting the PET packaging industry in Middle East and Africa. Since consumers are becoming more health conscious, moving toward nutritional products and away from sugary soft drinks, etc. These trends can impact the growth of the studied market in the long term.
- According to packaging equipment manufacturer Krones, the consumption of packed beverages in Middle East and Africa is expected to increase from 118.4 billion liters in 2021 to 127.1 billion liters in 2024. This consistent growth of packaged beverages is expected to bolster the demand for plastic bottles in the region during the forecast period.
- Stringent regulations for the use of plastic are imposed in the country. This forces manufacturers to opt for new packaging alternatives, such as oxo-degradable plastics. Companies are increasingly focusing on the urgency of recycling PET into food-grade products, such as beverage containers. For instance, The Coca-Cola Company intends to use 50% recycled PET in its containers by 2030.
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South Africa is Anticipated to Hold a Substantial Market
- South Africa is a major contributor to Middle East and Africa. The market is expanding due to rising disposable income and the acceptability of occasional drinking. The profitable prospect for developing the South African beverage market is being provided by increasing urbanization and manufacturers' growing launch of new products.
- According to InterGest South Africa, the e-commerce sector of the food and beverage industry is rising. In 2021, the e-commerce sector grew by approximately 12.2%, resulting in a market volume of approximately EUR 95.25 million (USD 104.44 million). From 2021 to 2025, the food and beverage e-commerce sector is expected to grow at an average annual rate of 7.66%.
- Moreover, in South Africa, bottled water is witnessing an increase in demand for high-end goods and experiences. Bottled water in South Africa is in high demand due to the need for clean drinking water. The rise of water sommeliers and restaurants serving only the best-bottled water are clear signs of this premiumization. A prime example is the KL Izakhaya restaurant in Hyde Park, Johannesburg, which offers a special menu of luxury bottled water with items starting at ZAR 650 (USD 35.42) a bottle.
- The market for alcoholic beverages in South Africa is anticipated to expand during the forecast period due to the country's premiumization of beer, wine, and other light alcoholic beverages and the rising number of affluent young adults becoming interested in alcohol consumption. The plastic bottle is becoming increasingly popular as an alternative packaging format for beer and other alcoholic beverages.
- South Africa boasts the continent's largest market for cosmetics and personal care products. While cosmetics hold significant value, they are also highly perishable. Therefore, the quality of packaging materials and the right conditions for packaging, transport, storage, and distribution are vital to preserving the product's integrity. Polyethylene (PE), a highly durable plastic, stands out for its chemical resistance and cost-effectiveness. Derived from petroleum polymers, PE is resilient against environmental hazards and is mainly categorized into high-density polyethylene (HDPE) and low-density polyethylene (LDPE).
- According to the Department of Trade and Industry, South Africa, the cosmetics and personal care sector has been increasing in the past few years, and it was forecasted to be valued at USD 3.4 billion by the end of 2023, up from USD 3.1 billion in 2018. Plastic bottles lead the cosmetics packaging market. The rising demand for products aimed at enhancing conditions like skin and hair care is projected to drive the growth of bottle usage during the forecast period.
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