Market Trends of United Arab Emirates Flexible Plastic Packaging Industry
Polyethylene (PE) is Estimated to Have a Significant Market Share
- Polyethylene (PE), a petroleum-derived polymer, stands out for its durability and chemical resistance, making it a cost-effective choice. Its robustness enables it to withstand diverse environmental challenges. The rising adoption of PE in crafting flexible plastic packaging, from pouches and pillow bags to films and wraps across sectors like food, beverages, pharmaceuticals, and cosmetics, is a key driver fueling the country's market growth.
- According to the Gulf Petrochemicals and Chemicals Association (GPCA), a non-profit based in the United Arab Emirates, in 2023, packaging dominated the polymer landscape in the Middle East. It accounted for over half of the region's polymer consumption, totaling about 2.7 million tons, and 66.8% of the polymer supply to regional converters. This heightened the pivotal role of packaging materials, especially polyethylene (PE), across diverse industries.
- Leading players like ENPI Group and Huhtamaki Oyj are at the forefront, offering advanced flexible plastic packaging solutions. These solutions, crafted from PE and BOPP, feature multiple layers of barrier films, enhancing shelf-life. Their product range spans from stand-up pouches for snacks and confectionary items to specialized pouches for household care products.
- The United Arab Emirates heavily relies on plastic imports, sourcing primarily from China, Saudi Arabia, India, the United States, and South Korea. Notably, as per data from Geeks for Geeks, an Indian tech platform, plastics rank as the country’s sixth most imported product. This underscores their critical role across industries, from packaging to construction and automotive.
Understand The Key Trends Shaping This Market
Download PDF
Food Industry to Register Highest Market Share
- The burgeoning travel and tourism industry in the United Arab Emirates is driving the consumption of food and beverages, particularly snacks like chips, nuts, and pretzels. These snacks, often packaged in high-barrier vacuum shrink bags, spouted pouches, or pillow bags, are fueling market expansion.
- Key players, including Amber Packaging LLC, ENPI Group, and Huhtamaki Oyj, are focusing on offering diverse product portfolios. These portfolios cater to the country's increasing consumer demand, especially in applications like fresh, frozen, and cooked meats, poultry, and seafood, emphasizing freshness.
- There has been a noticeable shift toward sustainability in the UAE food packaging landscape. For example, in November 2023, Spinneys, a prominent UAE-based food retailer, partnered with AI Bayader International, a packaging manufacturer. Together, they introduced post-consumer recycled plastic (rPET) packaging across Spinneys' stores. This move not only underscores Spinneys' commitment to the environment but also highlights the benefits of rPET, which requires less water, energy, and fossil fuels in its production. Spinneys plans to implement this packaging in its bakery product line.
- The increasing food consumption in the country is driven by a growing population, rising per capita income, and an expanding base of working-class professionals. Alpen Capital, a UAE financial institute, projects that the country's food consumption will continue to rise, bolstered by economic growth, with estimates extending to 10.4 million metric tons by 2027.
