Market Trends of MEA Plastic Bottles and Containers Industry
This section covers the major market trends shaping the MEA Plastic Bottles & Containers Market according to our research experts:
Food and Beverage Industry is Expected to Witness Significant Growth
- According to the Saudi Arabia Ministry of Commerce and Industry, the beverage and soft drink industries are now among the most mature sectors in the country, constituting a vast majority of the food and beverage sectors' exports. The beverage industry in the region is growing rapidly and its largely driven by bottled water, carbonated drinks, dairy products. PET as a packaging material for food and beverage is growing throught out the region.
- According to InterGest South Africa, the eCommerce sector of the food and beverage industry is on the rise. It had a market volume of approximately EUR 84.89 million in 2020. In 2021, the eCommerce sector is expected to grow by approximately 12.2%, which would result in a market volume of approximately EUR 95.25 million. Over the next few years from 2021 to 2025, the food and beverage eCommerce sector is expected to grow at an average annual rate of 7.66%.
- In February 2020, Agthia (UAE) announced a partnership with Veolia to launch several sustainability initiatives, which is likely to establish a circular ecosystem to make way toward more PET recycling in the region. Both the companies are aiming to structure the local PET ecosystem by developing innovative and digital collection solutions in order to address the challenges of post-consumed plastic bottles and encouraging the creation of a more sustainable and circular economy for plastics.
- According to Sidel, the demand for healthier products and sustainability are the two biggest trends impacting the PET packaging industry in the Middle East and Africa region. Since consumers are becoming more health conscious, moving towards more nutirional products and away from sugary soft drinks etc. These trends can impact the growth of the studied market in long term.
- Moreover, the emergence of biodegradable plastics is also expected to have an impact on the growing consumer markets. The adoption of materials, such as polypropylene, polyanhydrides, polyvinyl alcohol, and polylactic acid by packaging companies is expected to reduce the market share of conventional plastic packaging materials over the next few years.
Understand The Key Trends Shaping This Market
Download PDF
Saudi Arabia is Expected to Hold Significant Market Share
- Presently, particularly PP and PE can only be imported into Saudi Arabia if the products incorporate the permitted oxo-degradable masterbatches. According to the applicable rules introduced by the Saudi Standards, Metrology and Quality Organization (SASO, Riyadh), a total of 16 product groups are designated to display the label for products, ranging from closures, clamshells, agricultural mulch films, landfill covers, lids, milk pouches, pallet and shrink wraps, and plastic containers and trays.
- Saudi Arabia is one of the significant consumers of soft drinks, especially sugary drinks, which is also a significant consumer for plastic bottles. Due to the growing obesity concerns among the population, owing to the high soft drink consumption, the government imposed an increased tax on beverages, which resulted in over 67% increase in soft drink prices.
- The government's attempt to diversify its economic dependence on the oil and gas industry led to its support for real estate developments and resulted in the increased opening of the retail markets. Due to the increasing penetration of organized retail formats, such as hypermarkets, supermarkets, and e-commerce, the processed and packaged food market in the region is currently exhibiting a strong growth rate.
- In Saudi Arabia, due to the several regulations passed by the government over the use of plastic, the market growth might slow down. Recently, according to the Saudi organization, SASO, plastic products must be made of an approved oxo-biodegradable material, which may restrict the import of plastics in the country. Hence, several factors are expected to change the adoption trends of plastic bottles and containers in the country.
Get Analysis on Important Geographic Markets
Download PDF
