Market Trends of UAE Plastic Packaging Films Industry
Polyethylene Terephthalate (PET) is Expected to Witness Significant Growth
- PET (polyethylene terephthalate) plastic films are known for their mechanical properties, clarity, and versatility. They have high tensile strength, good dimensional stability, and resistance to tearing, making them durable and reliable. PET films provide an excellent barrier against gases, moisture, and odors, which is crucial for food packaging.
- rPET has several advantages over substitute materials, including lighter weight, greater durability, and greater adaptability. This makes it a polymer that is frequently utilized in packaging films. The lifespan of this class of polyester is brief. As a result, practically every product sold ends up as garbage. As a result, it has become a high-priority recycling target. It is more suitable as a recovered and recycled material because of its low diffusion coefficient.
- Manufacturers' introduction of recycled PET is set to significantly increase the plastic packaging film market. Using recycled PET aligns with global and regional sustainability goals, addressing environmental concerns related to plastic waste. Manufacturers can reduce their carbon footprint by incorporating recycled materials and supporting circular economy initiatives.
- Higher food expenditure is likely to boost online food shopping, which requires robust packaging solutions to ensure product safety and integrity during delivery. Plastic packaging films are essential for protecting food items during transit, preventing contamination, and maintaining freshness.
- As per the government of Canada, the United Arab Emirates' annual per capita food expenditure was estimated at around USD 1,826 in 2021, with projections indicating a steady rise, as spending per person is expected to climb to roughly USD 2,059 by 2025.
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Food to Register Significant Growth
- With increasing visitors, the United Arab Emirates continues to dominate the Middle East’s food and beverage industry. Due to its large-scale economic development and diversification, the food industry in the United Arab Emirates is one of the largest sectors across the region.
- As the food and beverage industry grows, the need for plastic packaging films rises. Plastic packaging films are indispensable in the sector, preserving the quality and extending the shelf life of food products.
- Furthermore, in the past few years, the UAE food processing industry has witnessed constant growth.
- According to the United States Department of Agriculture, more than 568 food and beverage manufacturers and processes exist in the United Arab Emirates. This trend is set to continue as international investments and the government’s efforts to boost domestic food output and self-reliance lead to the emergence and diversification of production facilities. Therefore, the demand for plastic packaging films for food is expected to continue in the coming years.
- The government's efforts to boost domestic food output and self-reliance will lead to a more diverse range of food products being manufactured locally. This diversification requires different types of packaging solutions, thereby increasing the demand for various plastic packaging films tailored to specific product needs.
- Online food retail requires specialized packaging to ensure products are protected during transit. This includes features like moisture barriers, tamper-evident seals, and temperature control, which plastic packaging films can provide effectively.
- According to the USDA Foreign Agricultural Service, in 2020, the retail value of food e-commerce in the United Arab Emirates was around USD 421 million, and it reached USD 1,072 million in 2023.
