UAE Plastic Packaging Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 702.01 Million |
| Market Size (2029) | USD 864.98 Million |
| CAGR (2024 - 2029) | 5.02 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
UAE Plastic Packaging Market Analysis
The United Arab Emirates Plastic Packaging Market size is estimated at USD 702.01 million in 2024, and is expected to reach USD 864.98 million by 2029, growing at a CAGR of 5.02% during the forecast period (2024-2029).
- The country's shifting regulations, consumer trends toward healthier products, and commitment to sustainability significantly impact the plastic packaging industry's ability to develop new products, designs, and technologies for its clients. The trends may drive the market's growth during the forecast period.
- Approximately 40% of the plastic used in the United Arab Emirates is single-use, and the country consumes 4 billion plastic bottles per year, according to Euronews. Plastic consumption per capita has shown an upward trend over the past decade in the United Arab Emirates, mainly due to the development of new products and material substitution in established markets. In many cases, plastics are still the material of choice, irrespective of metals, paper, etc., in a range of standard products. Also, plastics are the third most exported commodity in the United Arab Emirates.
- Moreover, the standardization of the 'Made in UAE' initiative, which introduces local manufacturers to the global market, is helping the country to reduce its reliance on imports and strengthen its export potential. The growth of this kind in the manufacturing sector encouraged considerable investments in the packaging industry. Most of the investments in the packaging sector are made toward adjusting their packaging practices to the country's current economic situation and evolving standards. With low purchasing power, the country's retail sector witnessed several consumer behavior changes.
- Further, the demand for plastic packaging continues to surge even though serious concerns are being raised about its environmental impact. However, the market faces challenges from government regulations and consumer demand, pushing manufacturers to look for biodegradable plastic packaging solutions derived from sustainable sources.
UAE Plastic Packaging Market Trends
Flexible Plastic is Expected to Witness Significant Growth
- The United Arab Emirates flexible plastic packaging market is rapidly expanding, driven by a surge in environmental consciousness, heightened demand for sustainable packaging, the necessity for tailored packaging in the booming e-commerce landscape, and an increased appetite for food, beverages, and household/personal care products, bolstered by economic growth and rising incomes.
- Agility Logistics, a Kuwait-based firm, reported that in 2023, the UAE ranked as the 28th largest online market globally. The country's e-commerce penetration rates are notably high, especially in categories like bags and pouches.
- The UAE's adoption of modern retail formats and an expanding array of frozen ready-to-eat foods has significantly boosted demand. This trend caters to time-pressed consumers seeking convenient grocery options. Furthermore, a shift toward Western eating habits among locals, bolstered by a rising immigrant, tourist, and young consumer base, is fueling the demand for packaged foods.
- Businesses are ramping up their investments and expertise to meet the escalating demand for top-tier flexible plastic packaging. For instance, in March 2023, Hexxa Flexible Packaging, based in Ras Al Khaimah, unveiled plans to acquire and install two new machines, aligning with the region's surging demand for efficient, flexible packaging solutions.
- The rise in food e-commerce creates a need for innovative packaging solutions that maintain food safety, prolong shelf life, and offer consumer convenience. Plastic packaging companies are expected to invest in developing advanced packaging technologies to address these requirements.
- According to the USDA Foreign Agricultural Service, the retail value of food e-commerce in the United Arab Emirates has continued to grow each year. In 2020, it reached USD 421 million, and by 2023, it had increased to USD 1,072 million.
The Food Segment is Expected to Hold a Significant Share in the Market
- The need for plastic packaging is anticipated to rise in the UAE due to the rising trend of consumer goods, including food, beverages, and medicines. Demand is growing due to the expanding need for portable, practical packaging options. As the country becomes more urbanized, there is a higher focus on sustainability and convenience in packaging. The general trend to move to flexible packaging is to take advantage of processed food packages and adapt to changing lifestyles.
- The need to provide more eco-friendly packaging grows as packaged food consumption rises. Fortunately, some companies are rising to the challenge of developing innovative and environmentally friendly food packaging to revolutionize the industry and promote environmental protection.
- The region's food industry is rapidly expanding, primarily fueled by a surge in the demand for packaged and processed foods. Millennials, known for their preference for on-the-go and single-serving foods, are propelling the need for flexible food packaging.
- UAE is witnessing a surge in the production of flexible plastic packaging, particularly stand-up pouches. These pouches are designed for a range of snack foods, from chips and cookies to bars and pretzels. The region's affinity for pouches and bags for snacked food packaging is further bolstered by a culture that embraces snacking at any time, contributing significantly to the market's growth.
- According to the Dubai Chamber of Commerce and Industry, organic food sales in the United Arab Emirates reached approximately USD 34 million in 2020 and are projected to increase to USD 52 million in 2025. The rising demand for organic food is expected to drive growth in the packaging industry, as these products often require specialized packaging solutions to maintain freshness and extend shelf life.
UAE Plastic Packaging Industry Overview
The UAE plastic packaging market is consolidated and expected to attain a higher degree of competitiveness owing to increasing investments, new players, and growing applications in end-user industries. Major players have adopted product launches, collaborations, and acquisitions to sustain intense market competition. Some of the key players in the market include Amber Packaging Industries, Huhtamaki Flexibles UAE, Mondi PLC, and Hotpack Packaging Industries LLC.
- May 2024: UFlex, a flexible packaging manufacturer operating in the United Arab Emirates, introduced new products for labels and flexible packaging. The company's packaging films division launched the 'B-UUB-M' Outstanding barrier-metalized BOPP Film. This new film is designed for various products, including dry fruits, beverages, chips, snacks, biscuits, cookies, confectionery, and chocolates.
- July 2023: Hotpack Global, a UAE-based manufacturer of sustainable packaging products, introduced post-consumer recycled (PCR) shopping bags for Spinneys. This launch underscores a pivotal advancement in the retail industry's push toward sustainability. Through its partnership with Spinneys, Hotpack produced shopping bags made entirely from 100% PCR resins.
UAE Plastic Packaging Market Leaders
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Amber Packaging Industries LLC
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Huhtamaki Flexibles UAE
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Mondi plc
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Integrated Plastics Packaging LLC
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Al Amana Plastic Bottles & Containers Manufacturing LLC
*Disclaimer: Major Players sorted in no particular order
UAE Plastic Packaging Market News
- June 2024: Versalis, operating in the United Arab Emirates, and Crocco, a prominent player in flexible packaging, formed a strategic partnership. Their collaboration aims to produce food packaging films using chemical recycling techniques. These films are partially manufactured from post-consumer plastic waste, demonstrating the companies' commitment to sustainability. The partners are expanding production to meet the increasing demands of the retail sector.
- December 2023: Dubai Municipality unveiled a novel social initiative designed to elevate recycling efforts and mitigate the environmental repercussions of waste materials. The initiative targets a dual objective: urging public and private entities to champion waste management and elevate the quantity and caliber of recycled materials.
UAE Plastic 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 Industry Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Rising Per Capita Income is Positively Impacting Purchase Power
5.1.2 Product Innovation, Differentiation, and Branding may Drive the Market's Growth
5.2 Market Challenges
5.2.1 Fluctuating Raw Material Prices
5.2.2 Challenges in Recycling Flexible Packaging Products
6. MARKET SEGMENTATION
6.1 By Plastic Form
6.1.1 Rigid Plastic
6.1.2 Flexible Plastic
6.2 By Products
6.2.1 Bottles
6.2.2 Cans
6.2.3 Jars
6.2.4 Pouches
6.3 By End-user Industry
6.3.1 Food
6.3.2 Beverage
6.3.3 Healthcare
6.3.4 Retail
6.3.5 Manufacturing
6.3.6 Other End-user Industries
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles*
7.1.1 Amber Packaging Industries LLC
7.1.2 Huhtamaki Flexibles UAE
7.1.3 Mondi PLC
7.1.4 Aptargroup Inc.
7.1.5 Integrated Plastics Packaging LLC
7.1.6 Al Amana Plastic Bottles & Containers Manufacturing LLC
7.1.7 Fujairah Plastics Factory
7.1.8 Hotpack Packaging Industries LLC
7.1.9 Uflex Limited
7.1.10 Falcon Pack
7.1.11 ENPI Group
8. INVESTMENT ANALYSIS
9. FUTURE OUTLOOK OF THE MARKET
UAE Plastic Packaging Industry Segmentation
The market for the study is defined as the revenue incurred from the sales of plastic packaging products in the United Arab Emirates. The market tracks the consumption trends of plastic packaging products in terms of value and volume. The analysis is based on the market insights captured through secondary research and the primaries. The market also covers the major factors impacting the growth of the glass packaging market in terms of drivers and restraints.
The UAE plastic packaging market is segmented by plastic form (rigid plastic and flexible plastic), products (bottles, cans, jars, pouches), and end-user industry (food, beverage, healthcare, retail, manufacturing, and other end-user industries). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Plastic Form | |
| Rigid Plastic | |
| Flexible Plastic |
| By Products | |
| Bottles | |
| Cans | |
| Jars | |
| Pouches |
| By End-user Industry | |
| Food | |
| Beverage | |
| Healthcare | |
| Retail | |
| Manufacturing | |
| Other End-user Industries |
UAE Plastic Packaging Market Research FAQs
How big is the United Arab Emirates Plastic Packaging Market?
The United Arab Emirates Plastic Packaging Market size is expected to reach USD 702.01 million in 2024 and grow at a CAGR of 5.02% to reach USD 864.98 million by 2029.
What is the current United Arab Emirates Plastic Packaging Market size?
In 2024, the United Arab Emirates Plastic Packaging Market size is expected to reach USD 702.01 million.
Who are the key players in United Arab Emirates Plastic Packaging Market?
Amber Packaging Industries LLC, Huhtamaki Flexibles UAE, Mondi plc, Integrated Plastics Packaging LLC and Al Amana Plastic Bottles & Containers Manufacturing LLC are the major companies operating in the United Arab Emirates Plastic Packaging Market.
What years does this United Arab Emirates Plastic Packaging Market cover, and what was the market size in 2023?
In 2023, the United Arab Emirates Plastic Packaging Market size was estimated at USD 666.77 million. The report covers the United Arab Emirates Plastic Packaging Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the United Arab Emirates Plastic Packaging Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
UAE Plastic Packaging Industry Report
Statistics for the 2023 UAE Plastic Packaging market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. UAE Plastic 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.
