Market Trends of United Arab Emirates Plastic Caps And Closures Industry
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.
Understand The Key Trends Shaping This Market
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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.
