Morocco Flexible Packaging Market - Growth, Trends, Covid-19 Impact, and Forecast - (2023 - 2028)

Morocco Flexible Packaging Market - Growth, Trends, Covid-19 Impact, and Forecast - (2023 - 2028)

The Moroccan flexible packaging market is expected to register a CAGR of 10.4% during the forecast period. With online shopping on the rise, the market is expected to rebound in the long run. Flexible packaging in Morocco is rising faster than other forms. It includes trends like e-commerce, and sustainability, which can be used to drive market development and growth. Customers in the region are eager to pay more for specific product attributes boosted by flexible packaging.

• Products with flexible packaging are widely used in the local food and beverage sector. Flexible packaging formats best meet the requirement for light and transparent packaging as single-serve and smaller meals receive more attention. The industry also employs opaque printing with improved visuals to maximize sales in the area.
• Morocco is undergoing a dietary change that affects both urban and rural environments. Food habits are changing due to urbanization, economic instability, and globalization. The convenience of ready-to-eat foods, whether locally produced or imported, attracts large population segments, especially in urban areas. These foods are becoming increasingly available and popular.
• The trade agreements between Morocco and other countries will improve the market for packaging in the cosmetics and food sectors. For example, in May 2022, Bulgaria's Deputy Minister of Economy and Industry, Dimitar Danchev, outlined plans to develop trade between Bulgaria and Morocco. The ministry stated significant export potential from Bulgaria to Morocco, especially cosmetics and food. With the presence of its geographical location, it continues to expand into Africa.
• However, the fluctuating price of raw materials can hinder the market's growth. The demand for flexible packaging products is driven by millennial customers who are enthusiastic about single-serve and takeout food and beverages. These products tend to be durable, highly portable, and lightweight, so flexible packaging is a popular option for packaging such products. This is expected to regulate demand for flexible packaging from the food and beverage industry.
• Due to the COVID-19 pandemic and growing public awareness that food supply chains, although typically highly efficient and unfocused, are fragile, consumers' grocery shopping behaviors have changed significantly. Due to supply chain disruptions, strict social distance regulations in several states, a decrease in supply from grocery stores, and other such factors, consumers were forced to think about food storage and using packaged food. This change is expected to drive the flexible packaging market in the country.
• Morocco's experience addressing the economic fallout from the COVID-19 pandemic illustrates many of the financial challenges that middle-income countries face and their fiscal limitations. Also, the war between Russia and United Kingdomraine has impacted the sector by raising raw materials prices and affecting business operations.

• The market for flexible packaging is expected to rise due to the trend toward cost-effective packaging in consumer and retail products like food, beverages, and pharmaceuticals. The demand is increasing due to the expanding requirement for portable and practical packaging solutions.
• With increasing urbanization, unstable economies, and globalization, Morocco's food habits are rapidly changing, impacting both urban and rural areas. . Large population segments are drawn to ready-to-eat foods because of their convenience, whether imported or locally manufactured, especially in urban regions. These foods are more widely available and well-liked.
• The most sought-after parameter is that consumers are becoming more cautious about various factors, such as food quality, nutritional value, ingredients, and packaging. For instance, in Morocco, food hygiene and safety are often discussed. Moroccan manufacturers must control their products' quality besides providing evidence of that control.
• In May 2022, Elopak welcomed new locations and team members in Casablanca, Morocco, and Saudi Arabia, in the official celebration of Naturepak Beverage's recent acquisition. Elopak has local manufacturing facilities in Morocco and Saudi Arabia and has expanded its extensive global network to include customers in 70 countries. The acquisition of Naturepak Beverage is part of Elopak's growth strategy and strengthens its position in the highly potential MENA region. The company looks to leverage its strong track record, expanding its geographic footprint and investment in sustainability-focused innovation.
• With robust port access and an ideal road network, Morocco has excellent e-commerce logistics capabilities to leverage to drive flexible packaging growth in the market. An example of a company using Moroccan infrastructure is Jumia. Jumia Morocco owns over 10,000 vendors offering over 8 million products. Jumia has a sizeable Moroccan network with over 500 consumer pickup locations.
• According to the Interbank Electronic Banking Center, in 2020, Moroccan e-commerce websites witnessed a 46% increase in transaction volume and a 25% increase in spending. E-commerce in Morocco continued to grow in 2021, with a 48% increase in transactions and a 30% increase. The rise of online sales channels helps the country to gain momentum toward flexible packaging innovations, mainly in food, beverage, and more applications.

• The food processing industry in Morocco contributes to nearly 6% of the country's GDP. It benefits from first-rate manufacturing facilities, good quality infrastructure, and easy access to markets in the neighboring African nations. Over the medium-term forecast period, Fitch Solutions has indicated a favorable outlook for Morocco's food service market. It anticipated that between 2022 and 2026, nominal household spending on restaurants and hotels (as a stand-in for food services) would increase at a compound annual growth rate of 3.9%.
• Morocco has been working to produce local plastic, metallic, and paperboard packages because the packaging is an integral part of agrifood production and distribution. In June 2022, Morocco's federations in the agrifood and packaging industries agreed to reduce its reliance on imports. Moroccan players in the agrifood and packaging industries banded together to lessen the MAD 8 billion (USD 0.76 billion) burden of imports after being adversely affected by the economic crisis and the rise in raw material prices.
• The increase in prices has prompted Moroccan agrifood federations to increase the sector's integration rate to 39%, up from the current rate of 26%, as stated by the Federation of Forest Industries, Graphic Arts, and Packaging (FIFAGE).
• Market players are increasing their investment, partially supported by the government's initiatives to become a self-sustained food economy. Packaging organizations are poised to witness growth owing to this development. For instance, in May 2022, the largest retailer in Morocco, Retail Holding, and the UAE-based packaging manufacturer HotpackGlobal announced plans to jointly take 80% of the country's packaging market.

The Moroccan flexible packaging market is fragmented and consists of several major players. The players with a prominent market share are focusing on expanding their customer base across the country.

In June 2022, Austrian injection molding machine manufacturer and system solutions provider ENGEL aimed to strengthen its market presence in North Africa by establishing its sales and service branch in Morocco. The company is focusing on Morocco as it is trying to establish itself as a production base for the packaging of medical technology and industries.

In May 2022, Hotpack Global, the world’s leading manufacturer of disposable food packaging products, announced a regional expansion in Morocco, joining hands with the retail leader of the African nation, Retail Holding, through its investment arm, Best Financiers.

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