Market Trends of United Arab Emirates Plastic Bottles Industry
Polyethylene (PE) Segment is Expected to Hold the Largest Market Share
- The plastics industry is growing in the United Arab Emirates, backed by the growing plastic consumption in various end-use industries, including pharmaceutical, food, beverage, personal care, and cosmetics. The growth in demand for plastic products in the country is attributable to the rising population, rapid urbanization, and fast-growing economy.
- Plastic bottles made from Polyethylene (PE) are widely replacing heavy and fragile glass bottles since they offer reusable packaging for mineral water and other beverages. This allows a more economical transportation process, propelling the market growth. Additionally, the growing tourism in the country boosts the demand for packaged water, significantly augmenting the market growth.
- Manufacturers in the country, such as Alpla Group, Al Amana Plastics, and Emirates Plastic Industry UAE, focus on providing HDPE and LDPE bottles for pharmaceuticals, chemicals, beverages, and household care applications using extrusion blow molding technology (EBM). Manufacturers offer a wide range of customized designs and colors for PE bottles to meet the specific needs of customers.
- The expanding beverage industry in the country presents a lucrative opportunity for global exporters. Plastic bottles, being lighter than their glass counterparts, have taken precedence in milk packaging, driving the market's growth. Data from the USDA reveals that in 2023, the UAE imported USD 13.6 billion worth of consumer-oriented products, with dairy products alone accounting for a value of USD 1.92 billion, up from USD 1.8 billion the previous year.
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The Beverage Segment Expected to Dominate the Market
- Ranked as the second-largest economy in the region, the United Arab Emirates (UAE) follows closely behind Saudi Arabia. The country's food processing sector is flourishing, fueled by strong economic growth and heightened domestic consumption. In the United Arab Emirates, evolving consumer preferences in the food and beverage sector have spurred notable growth in the packaging industry, particularly within the food and beverage domain, driving further market expansion.
- Urbanization, a growing population, and the embrace of Western culture have spurred the rising demand for carbonated soft drinks, energy drinks, and sports drinks in the country. Data from the Dubai Medical Journal highlights the UAE's prominence, ranking it among the top five countries globally for per capita juice and soft drink consumption. Reports show that UAE residents consume an average of 103 liters of soft drinks each year, increasing the demand for plastic bottles.
- Manufacturers such as Alpla Group are prioritizing sustainability and diversifying their product lines to align with the changing demands of consumers in the country. The company produces plastic bottles in various shapes and sizes, using PET, PP, and PE, specifically for beverage applications. Notably, these bottles incorporate post-consumer recycled PET, leading to reduced carbon emissions and bolstering sustainability efforts.
- The country's rising bottled water consumption further amplifies the demand for plastic bottles. Data from the Beverage Marketing Corporation (BMC) positions the UAE as the sixth-largest consumer of packaged water worldwide. In 2022, per capita bottled water consumption stood at 36.6 gallons (138.54 Liters), with projections for 2023 estimating a rise to 37.5 gallons (141.95 Liters).
