Middle-East and Africa Paper Cups Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Middle-East and Africa Paper Cups Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The Middle East and Africa paper cups market is expected to register a CAGR above 4.81% during the forecast period.

• Paper cups were developed from life-saving material and still deliver the same health and safety values today. Paper cups serve hot and cold beverages such as coffee or tea and hold food items such as ice creams and soups.
• The recyclability of paper cups is one of the key factors driving the growth of the paper cup market. These cups can be recycled indefinitely because they are made of paper. Manufactured per environmental regulations, users benefit from the cost advantages of packaging while eliminating disposal concerns. It helps the vendors to contribute to the sustainability goals through their products.
• The increasing adoption of disposable cups to serve hot and cold beverages in quick-service restaurants will likely drive their demand in the coming years. In addition, the rising usage of such cups for drinking water in several commercial and residential parties is expected to conduct their demand.
• Moreover, the growing popularity of on-the-go beverages and the number of food service outlets propel the Middle East and African paper cup market. The food and beverage industry is becoming increasingly dynamic. This transition provides packaging producers several options for meeting innovative packaging needs in the food & beverage industry.
• The manufacturing industry faces the challenge of adapting to an ever-changing business and operational environment. The fourth industrial revolution has brought a new set of challenges that requires a different approach to the problem.
• As the spread of COVID-19 decelerated, the shift in focus is now to encompass the market disruptions and their effects on the packaging markets.
• Some of the biggest packaging priorities and discussions revolved around sustainability. The highly debatable use of plastics, recycling, and development of bio-materials, to name a few, have been subject to intense discussion and consumer pressure.

• The fast food and quick service restaurant business in the Middle East is expected to expand significantly over the forecast period. The market's expansion is primarily fueled by shifting consumer preferences as well as an increase in the number of working populations. Eating out is a relatively common activity in the Gulf Cooperation Council (GCC), where there are often few entertainment options.
• More than a third of mall patrons come just for the food, not to shop. Most quick-service restaurants use disposable paper cups for hot and cold beverages. Therefore, there is a rapid demand for paper cups across the region. New roads and airports, malls, parks, and entertainment centers across the Middle East also allow numerous food and beverage chains to open. Also, frequent travel on the road spikes the demand for fast and ready-to-eat food and beverages.
• Notably, international companies with significant operating revenues in the area include Domino's Pizza Inc., McDonald's Corp., and KFC Inc. For instance, in December 2022, AlamarFoods, the franchisee for Domino's across the Middle East, North Africa, Pakistan, Egypt, and Morocco, successfully established its 600th location in Dubai. With the rising demand for quick-service restaurants, the proportional demand for beverages would increase the need for paper cups in the region.
• Numerous cafes and restaurants have focused more on curbside pickup or carryout only. Some stores reduced their in-store capacity and established inventive delivery options to ensure food delivery during the lockdowns. The food and beverage industry is anticipated to significantly increase demand for paper cup solutions. This is mainly because of the growing need for hygiene products that have made the paper a viable packaging material.
• The region's café and tea shop industry appears poised for expansion. Traditional tea shops have been around for a while, but young Middle Eastern urbanites and foreigners seek more cafés with a Western aesthetic. Cafés are places where one can hang out with friends or work on a computer while using free Wi-Fi, just like full-service restaurants and fast-food restaurants.

• The paper cup market in Saudi Arabia is expected to grow significantly due to increased travel. The rising use of social media has exposed a significant proportion of Saudi society to Western culture. Technology and increasingly relaxed social norms are leading to emerging freedom of choice. This benefits food service by expanding the consumer base, boosting sales, and driving transaction volume growth.
• The airline industry's increased demand for prepared foods and beverages, labor camps, the military, hospitals, universities, schools, Umrah/Hajj, and catering for weddings and other celebrations are key factors. Demand for packaged foods and beverages is growing, and more multinational companies are entering the market.
• Local consumers are becoming increasingly selective in their desire for more unique experiences. The increased focus on experience is shifting from Fast Food to Fast Casual formats as consumers attach increased weight to a quality experience rather than just convenience.
• The market is expected to grow due to the high demand for home delivery. It is increasingly common for food to be delivered to workplaces across Saudi Arabia. Also, as the range of entertainment and sporting venues increases in line with the aims of Vision 2030, so will the demand for food delivery to those attending events in public spaces.

The Middle-East and Africa paper cup market is fragmented market due to the presence of considerable regional and local vendors providing paper cups. Key players in the market are ENPI Group, Huhtamaki Group, Gulf East Paper & Plastic Group, and others.

In November 2022, HotpackGlobal opened a manufacturing facility in Qatar. The cutting-edge manufacturing facility is a specialized factory that will create a wide range of Hotpack'spaper products, including folding and corrugated cartons, paper bags, and cups. It is situated in Doha's new industrial region.

In October 2022, Detpak introduced its newest innovative product: the Detpak paper lid. The Detpak paper lid is constructed using the same paper that most coffee cups are generally made from and with a thin polymer lamination that enables the packaging to hold liquid securely. It is the most recent addition to a line of leading paper goods driven by the principle of "Responsible by Design." By using this lid, take-out coffees utilize 83% less single-use plastic.

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support