United Arab Emirates Plastic Caps and Closures Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 0.86 Billion |
| Market Size (2029) | USD 1.14 Billion |
| CAGR (2024 - 2029) | 5.80 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
United Arab Emirates Plastic Caps and Closures Market Analysis
The United Arab Emirates Plastic Caps And Closures Market size is estimated at USD 0.86 billion in 2024, and is expected to reach USD 1.14 billion by 2029, growing at a CAGR of 5.80% during the forecast period (2024-2029). In terms of shipment volume, the market is expected to grow from 16.16 billion units in 2024 to 19.49 billion units by 2029, at a CAGR of 3.82% during the forecast period (2024-2029).
Various packaging vendors in the United Arab Emirates sell a diverse array of caps and closure products of plastic. These materials cater to needs in food, beverages, personal care and cosmetics, household chemicals, and others.
- The United Arab Emirates stands out in the Middle East's food and beverage industry owing to its robust economic growth and diversification. This has propelled the UAE's food and beverage sector to the forefront in the GCC. Consequently, there is a rising appetite for convenient and portable packaging solutions.
- The UAE food processing industry has witnessed constant growth in the past few years. According to the US Department of Agriculture, there are more than 568 food and beverage manufacturers and processes in the country. This trend is set to continue as international investment, and the government's efforts to boost domestic food output and self-reliance lead to the emergence and diversification of production facilities.
- Plastic caps and closures retain shape, providing sturdy support for stored products. Its robust structure enhances product safety by minimizing movement, reducing the impact of collisions, and ensuring secure transportation. Plastic jars paired with caps and closures find extensive use in supermarkets and shops, facilitating the transportation of diverse items, ranging from foods to pharmaceuticals.
- The UAE packaging industry is expanding, driven by the region's exploding need for packaging products and the expansion of e-commerce. As per the Meltwater report, as of October 2023, the United Arab Emirates had one of the highest internet penetration rates of 99%. This strength in the country's internet penetration rate would create a facilitative business and tech atmosphere that drives the sale of food, beverages, and groceries. Therefore, the demand for caps and closures would also increase.
- Energy, transport, and logistics fluctuations have significantly impacted raw material prices. Packaging, closely tied to raw material imports and exports, is susceptible to various factors, including geopolitical tensions, trade regulations, tariffs, and shifting environmental priorities. Global conflicts and geopolitical tensions further exacerbate supply chain uncertainties, influencing demand-supply dynamics and potentially leading to economic downturns. While the United Arab Emirates traditionally relies heavily on oil, these broader economic uncertainties could spill over, affecting the region's non-oil sectors and raw material pricing.
United Arab Emirates Plastic Caps and Closures Market Trends
Polyethylene Terephthalate (PET) To Witness Growth
- PET's popularity in food and beverage packaging stems from its high resistance to water vapor, gases, oils, and alcohol. Its recyclability and enduring resistance further bolster its appeal. Given its durability and steadfastness, PET is a favored choice for food-grade items, especially in single-serve drink containers and closures.
- PET bottles are the go-to choice for packaging soft drinks, given PET's ability to retain CO2. Beyond CSDs, PET packaging is prevalent in other beverage categories, from fruit juices and sports drinks to oils. The demand for plastic caps and closures is set to rise. The widespread adoption of 100% PET bottles, including caps and closures, is anticipated to invigorate the market further.
- According to SIPA SpA, in 2023, over the past decade, the Arab country witnessed a robust expansion in its tourism sector, propelled by governmental investments and incentives. The United Arab Emirates emerged as a premier global destination for tourists and leisure seekers. This surge in tourism is pivotal for bottled water consumption, especially with the escalating presence of sales channels like cafes, pubs, hotels, and restaurants across the nation.
- PET plastic bottles are increasingly supplanting their glass counterparts, given their reusability and cost-effective transportation benefits. With its inherent clarity and CO2 barrier, PET boasts versatile applications, quickly taking on various shapes. It may be enhanced with colorants, UV blockers, and other additives to tailor bottles to specific brand requirements.
- According to the Government of Canada, the per capita expenditure on non-alcoholic beverages in the United Arab Emirates in 2021 was USD 207.8. It is expected to reach USD 228.3 in 2024. Consumers favor non-alcoholic beverages over their traditional counterparts, leading to a surge in non-alcoholic beverage brands. This shift is evident in the United Arab Emirates, where supermarkets, restaurants, bars, and liquor stores prominently feature non-alcoholic spirits, wines, and beers. A senior executive at Emirates Leisure Retail highlighted that the UAE's non-alcoholic adult beverage sector is witnessing rapid growth.
Beverage Segment to Witness Robust Growth
- The study focuses on the rising demand for plastic caps and closures within the beverage sector. The bottled water sector has witnessed a remarkable surge in demand in recent years, emerging as a dominant category within the broader beverage landscape. This surge is attributed mainly to a growing health consciousness among consumers. The bottled water packaging market in the region has directly benefited from this trend.
- Major retail players in bottled water sales span supermarkets, convenience stores, vending machines, and online platforms. However, supermarkets' and hypermarkets' expansive reach and diverse offerings position them as the leading sales channels for bottled water. With businesses expanding and the retail landscape witnessing a surge in hypermarkets and supermarkets, these formats are poised to drive significant growth in the bottled water market.
- In 2023, the United Arab Emirates inaugurated a recycling plant with an annual capacity of 12,000 tons dedicated to rPET production. This move positions the United Arab Emirates to recycle more than a quarter of its PET consumption. In 2023, the Al Ain Water Company initiated a production line specifically for rPET-based water bottles, although these bottles are common in the market.
- The region witnessed several partnerships, recognizing the rising demand for carbonated soft drinks in the area, thereby creating opportunities for various rigid plastic packaging vendors across the region. For instance, in February 2023, Star Soda, a prominent soda brand based in the United Arab Emirates and produced by International Beverage and Filling Industries (IBFI), made significant strides in selecting Binzagr Company as the sole distributor in the Kingdom to reach consumers and increasing its market share.
- According to Agriculture and Agri-Food Canada, the value of annual per-capita expenditure on non-alcoholic beverages in the United Arab Emirates in 2020 was 222.9. It is expected to reach USD 247.7 in 2023. Overall, the market is expected to have significant growth rates in the coming years owing to the ongoing developments toward plastic caps and closures packaging products and the rising consumption of beverages in the region.
United Arab Emirates Plastic Caps and Closures Industry Overview
The UAE plastic caps and closures market is fragmented, with many domestic and major players, such as Amcor PLC, Aptar Group, Bericap Middle East FZE (BERICAP Holding GmbH), Emirates Plastic Industries Factory, and Modern Plastic Industry. Companies operating in the region are focused on expanding their business through innovations, collaborations, acquisitions, mergers, etc.
- In July 2024, Emirates Plastic Industries Factory, a plastic bottle and caps manufacturer in Dubai, positioned itself at the forefront of this dynamic industry by embracing innovation, sustainability, and quality. Staying ahead of technological trends is key to delivering top-notch products. The company leverages state-of-the-art machinery and cutting-edge production techniques to manufacture plastic bottles that meet the highest standards of quality and precision. By investing in advanced manufacturing technologies, Emirates Plastic Industries ensures efficiency, consistency, and cost-effectiveness in its production processes.
United Arab Emirates Plastic Caps and Closures Market Leaders
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Amcor Plc
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Aptar Group
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Bericap Middle East FZE (BERICAP Holding GmbH)
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Emirates Plastic Industries Factory
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Modern Plastic Industry
*Disclaimer: Major Players sorted in no particular order
United Arab Emirates Plastic Caps and Closures Market News
- December 2023: Aptar Closures marked a significant moment with the inauguration of Gulf Closures, a Bahrain-based beverage closures manufacturer. This move followed Aptar's acquisition of a majority stake in Gulf Closures in March 2023. The acquisition merged Aptar's worldwide business strengths and integrated Gulf Closures' specialized manufacturing, regional reach, and seasoned workforce. This strategic alignment aimed to enhance service for Aptar's current Middle Eastern clientele, explore fresh market avenues, and solidify Aptar's foothold in the region.
- October 2023: Borouge, a collaboration between the United Arab Emirates's Adnoc and Austria's Borealis, inked an MOU with Tadweer, Abu Dhabi's waste management center. This aimed to delve into waste management, sorting, and mechanical recycling of polymers, emphasizing best practices. Boasting an annual polyolefin capacity of 5 million tons, Borouge eyes a 2025 expansion to 6.4 million tons. This shift is primarily propelled by consumer demand and the sustainability targets of multinational firms in the Middle East. This might push the region's need for recyclable plastic caps and closures.
United Arab Emirates Plastic Caps and Closures 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 Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Demand For Recyclable Caps and Closures, and Increase in Shelf Life of the Products
5.2 Market Restraints
5.2.1 Stringent Regulations and Raw Material Price Fluctuations
6. INDUSTRY REGULATION, POLICY AND STANDARDS
7. MARKET SEGMENTATION
7.1 By Resin
7.1.1 Polyethylene (PE)
7.1.2 Polyethylene Terephthalate (PET)
7.1.3 Polypropylene (PP)
7.1.4 Other Plastic Materials (Polystyrene, PVC, Polycarbonate, etc.)
7.2 By Product Type
7.2.1 Threaded
7.2.2 Dispensing
7.2.3 Unthreaded
7.2.4 Child-resistant
7.3 By End-user Industry
7.3.1 Food
7.3.2 Beverage
7.3.2.1 Bottled Water
7.3.2.2 Carbonated Soft Drinks
7.3.2.3 Alcoholic Beverages
7.3.2.4 Juices and Energy Drinks
7.3.2.5 Other Beverages
7.3.3 Personal Care and Cosmetics
7.3.4 Household Chemicals
7.3.5 Other End-user Industries
8. COMPETITIVE LANDSCAPE
8.1 Company Profiles*
8.1.1 Aptar Group
8.1.2 ALPLA PLASTIC MIDDLE EAST INDUSTRIES LLC
8.1.3 Modern Plastic Industry
8.1.4 Amcor PLC
8.1.5 ENPI Group
8.1.6 Polycos Plastic Industries
8.1.7 Bericap Middle East FZE (BERICAP Holding GmbH)
8.1.8 Alamir Plastic Industries
8.1.9 Emirates Plastic Industries Factory
9. INVESTMENT ANALYSIS
10. MARKET FUTURE OUTLOOK
United Arab Emirates Plastic Caps and Closures Industry Segmentation
The scope of the study characterizes the plastic caps and closures market based on the product's raw materials, including PP, PE, PET, and other raw materials used across various end-user industries, such as food, pharmaceuticals, beverages, cosmetics, toiletries, and more across the country. The research also examines underlying growth influencers and significant industry vendors, all of which help to support market estimates and growth rates throughout the anticipated period. The market estimates and projections are based on the base year factors and arrived at top-down and bottom-up approaches.
The UAE plastic caps and closures market is segmented by resin (polyethylene (PE), polyethylene terephthalate (PET), polypropylene (PP), and other plastic materials), product type (threaded, dispensing, unthreaded, and child-resistant), end-user industry (food, beverage (bottled water, carbonated soft drinks, alcoholic beverages, juices and energy drinks, and other beverages), personal care and cosmetics, household chemicals, and other end-user industries). The report offers the market size in value terms in USD for all the abovementioned segments.
| By Resin | |
| Polyethylene (PE) | |
| Polyethylene Terephthalate (PET) | |
| Polypropylene (PP) | |
| Other Plastic Materials (Polystyrene, PVC, Polycarbonate, etc.) |
| By Product Type | |
| Threaded | |
| Dispensing | |
| Unthreaded | |
| Child-resistant |
| By End-user Industry | |||||||
| Food | |||||||
| |||||||
| Personal Care and Cosmetics | |||||||
| Household Chemicals | |||||||
| Other End-user Industries |
United Arab Emirates Plastic Caps and Closures Market Research FAQs
How big is the United Arab Emirates Plastic Caps And Closures Market?
The United Arab Emirates Plastic Caps And Closures Market size is expected to reach USD 0.86 billion in 2024 and grow at a CAGR of 5.80% to reach USD 1.14 billion by 2029.
What is the current United Arab Emirates Plastic Caps And Closures Market size?
In 2024, the United Arab Emirates Plastic Caps And Closures Market size is expected to reach USD 0.86 billion.
Who are the key players in United Arab Emirates Plastic Caps And Closures Market?
Amcor Plc, Aptar Group, Bericap Middle East FZE (BERICAP Holding GmbH), Emirates Plastic Industries Factory and Modern Plastic Industry are the major companies operating in the United Arab Emirates Plastic Caps And Closures Market.
What years does this United Arab Emirates Plastic Caps And Closures Market cover, and what was the market size in 2023?
In 2023, the United Arab Emirates Plastic Caps And Closures Market size was estimated at USD 0.81 billion. The report covers the United Arab Emirates Plastic Caps And Closures Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the United Arab Emirates Plastic Caps And Closures Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
United Arab Emirates Plastic Caps and Closures Industry Report
Statistics for the 2024 United Arab Emirates Plastic Caps And Closures market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. United Arab Emirates Plastic Caps And Closures analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
