Egypt Flexible Packaging Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Egypt Flexible Packaging Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The Egyptian flexible packaging market is anticipated to register a CAGR of 4.82% over the forecast period. The market for flexible packaging in Egypt is expected to grow over the anticipated period, driven by increased consumer demand and rising consumption from the packaging sector. The Russia-United Kingdomraine war has slightly impacted Egypt's overall ecosystem of the flexible packaging market.

• Flexible packaging is gaining popularity as the future of packaging due to its convenient shape, ease of use, resealable properties, lightweight, and overall environmental impact compared to rigid counterparts.
• A rising number of consumer-packaged goods (CPG) companies find that using flexible packaging helps differentiate their product from the competition, resulting in increased consumer interest and, ultimately, purchases. A bonus is that brands that adopt flexibility into their line-ups find these products easier to store, display, ship, and handle.
• Brands are aggressively focused on implementing Flexible Packaging Solutions across their product line to demonstrate their strong commitment to keeping the earth greener since sustainability is quickly becoming the most crucial trend in packaging. Recycled packaging choices are favored by businesses and customers concerned about the environment due to limitations, tight compliance requirements, and other sorts of bans being implemented globally.
• Egypt is witnessing positive volume sales growth across packaged food as population growth continues to underpin rising sales across the country. All these factors are collectively expected to drive the consumption of consumer products that require flexible packaging products for packaging. Furthermore, expanding new retail stores and outlets is estimated to augment the demand for flexible plastic products in the next few years.
• However, the growing awareness of the environmental impact of single-use plastic and unsustainable business plastic solutions has increased demand for environmentally friendly products. The initiative by Egypt's local government has raised awareness about alternatives to single-use plastic packaging that significantly impacted plastic packaging consumption.
• The COVID-19 outbreak significantly impacted Egypt's SMEs that produce flexible packaging. The effects of COVID-19 on SMEs resulted in both operational and financial issues. Additionally, there was a noticeable disturbance in the supply chain regarding output. Financially, they have little cash on hand, but instead of applying for a loan to pay their bills, they temporarily choose to cut back on production.
• Further, the Russia-United Kingdomraine war slightly affected the country's packaging since it does not rely much on Russia or United Kingdomraine to trade flexible packaging products.

• A significant increase in demand for bottled milk, frozen semi-prepared foods, and portable snacks has been witnessed. Additionally, food sales in this nation have increased due to the pandemic's alteration of consumer tastes and the need for flexible packaging due to health concerns.
• The COVID-19 pandemic across the country has resulted in a new transformation in Cairo's and Egypt's e-commerce segment. As a result of the pandemic, the closure of malls has changed the logistics landscape in Egypt. Consumers have shifted their preferences toward e-commerce; therefore, the e-commerce sector is striving to keep up with the rising demand for online shopping.
• Moreover, owing to the rising export of food and agricultural products, the government focuses on capturing opportunities that benefit the agriculture sector. According to the Minister of Planning and Economic Development, Egypt aims to increase its agriculture sector's gross domestic product (GDP) contribution to 12% by 2024 and increase agricultural production by 30% by 2024.
• Egypt is one of the prominent exporters of fruits and vegetables. According to the Ministry of Agriculture and Land Reclamation, Egypt's agricultural exports amounted to about 5.2 million tonnes from January to November 2021, recording an increase of around 600 tonnes from the same period in 2020. This growth in export activities witnessed the demand for flexible packaging.
• Further, according to a USDA report, the top consumer goods imported in 2021 by Egypt were beef and beef products, dairy products, spices, fresh fruits, tea, chocolate and cocoa products, tree nuts, soups and other meal preparations, fresh vegetables, chicken meat and products, and tree nuts (ex. eggs). The top suppliers were India, which contributed USD 692 million (18% of total share), Brazil, which contributed USD 324 million (9%), United States, which contributed USD 243 million (6%); Kenya, which contributed USD 202 million (5%) the Netherlands, which contributed USD 163 million (4%) and Italy, which contributed USD 159 million (4%). The significant import of food products may create opportunities for several flexible packaging vendors.

• Consumers have shown more preference for retail products, such as general merchandise, fabrics, apparel, and other accessories, besides food and beverages. Food and beverage retail products are expected to have a positive outlook with the fast-paced lifestyle of the people. The food and beverage end-use sector expects high demand for paper bags.
• Egypt is witnessing positive volume sales growth across packaged food as population growth continues to underpin rising sales across the country. All these factors are collectively expected to drive the consumption of consumer products that require bags for packaging. Furthermore, expanding new retail stores and outlets is estimated to augment the demand for plastic bags in the next few years.
• In addition, retail stores and brands majorly print their brand name along with promotional and marketing messages on the plastic bags. Increasing the use of bags as a low-cost marketing tool is anticipated to fuel the demand for the bags in the market in the coming years.
• Several initiatives by the government in the country are expected to positively impact the demand for paper bags. For instance, in August 2022, the government of Egypt targeted the reduction of the annual consumption of single-use plastic bags to 100 bags per capita by 2025 and 50 by 2030.
• Further, according to ITC data, in 2021, the imports of plastics and articles in Egypt were recorded at around USD 4093.208 million, a 37.42% increase in the value from the previous year, 2020, which recorded about USD 2978.579 million. Such a rise in imports may increase the adoption of flexible packaging in the country.

The Egyptian flexible packaging market is consolidated and has a few major players with significant market shares. Some participants, such as Mondi Plc, Huhtamaki Group, etc., benefit from the enhanced market reputation and broader regional presence. The market players are concentrating on growing their customer base throughout the end-user sectors. The market witnessed firms collaborate to implement a circular economy model of recycling plastics.

• April 2022: The paper bag conversion lines were acquired by Mondi Paper Bags, a division of the Mondi Group, from National Bag and Egypt Sack, two divisions of Lafarge Cement Egypt, a significant cement manufacturer in the nation. The new manufacturing lines will help Mondi enhance its position in the Egyptian paper bag market and expand its capacity by around 150–180 million bags yearly.
• February 2022: Coveris, an Austria-based flexible packaging specializing in eco-friendly packaging, unveiled a thin stretch film line with 30% recycled content. According to the manufacturer, these recycled stretch films are now available in the thinnest thickness. Both hand and pre-stretch versions are being made available. In addition to being recyclable, the business claimed that the films offer the same packaging and transportation economies as virgin materials.

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