Uae Corrugated Board Packaging Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Uae Corrugated Board Packaging Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The UAE Corrugated Board Packaging market is expected to register a CAGR of 4.26% during the forecast period. Corrugated packaging is becoming more popular because of the country's growing e-commerce industry penetration, rising environmental consciousness among consumers, and the demand for sustainable packaging options.

• Government and regulatory bodies in the nation are becoming increasingly concerned about sustainable packaging and its financial advantages. This element is also fueling the studied market's expansion. As the government took significant steps to urge citizens to lessen their environmental impact, Abu Dhabi retailers started phasing out plastic packaging from June 2022.
• The population's growing environmental consciousness and demand for convenient, environmentally friendly packaging options (partially offset by new single-use packaging regulations in some countries) contribute to the market's accelerated growth. Other significant factors include the expanding e-commerce market, rising demand for electronic goods, home and personal care products, economic growth, and rising per capita income.
• The country also has a high rate of packaged food and beverage consumption, owing to urbanization and a rising number of tourists and expiates that often prefer safer processed foods. Also, the country has stringent packaging regulations regarding food and beverages. The increasing demand for packaged food in the country is augmenting the demand for corrugated board packaging.
• Sustainable packaging is often more expensive than conventional packaging. Many companies prefer paper packaging as a suitable alternative to plastic and metal as it is on the lighter side, eco-friendly, and recyclable. However, the corrugated packaging industry is facing challenges as the prices of its primary raw material, kraft paper, have started shooting up.
• The COVID-19 pandemic disrupted the supply of raw materials in manufacturing corrugated boxes across the country, consequently affecting prices. The rise in paper prices due to short supply and restriction in imports pushed the cost of corrugated boxes and packaging materials, worrying the industrialists.

• To ensure quality, e-commerce packaging is becoming more confidential and efficient. Smaller packaging allows postal and delivery personnel to load more products onto their trucks, enabling low carbon emissions and time savings. Now that more corrugated boxes are arriving on doorsteps rather than in stores, the sector is counting on more people to keep up with recycling.
• According to PMMI, the Association for Packaging and Processing Technologies, the global packaging industry for e-commerce may reach USD 55 billion by this year, registering a CAGR of 14.3%. There are numerous chances to fulfill the requirements of upcoming cutting-edge package designs, especially for corrugated packaging, which might account for more than 80% of e-commerce packaging.
• Corrugated packaging will profit immensely if e-commerce becomes a more significant retail component. Owing to the popularity of e-commerce packaging, corrugated boards are often the preferred material.
• Since online shopping platforms have been overgrown across the region, the demand for tertiary and secondary paper packaging products and corrugated boxes has increased dramatically.
• Post COVID-19 pandemic, the e-commerce industry in the United Arab Emirates is witnessing a significant transformation in consumer behavior. Consumers have increased their usage of e-commerce platforms. This has increased the demand for corrugated boards from e-commerce companies. The growing e-commerce industry will positively impact the corrugated board packaging market.

• The food industry is one of the country's largest packaging consumers. The country has a high rate of packaged food and beverage consumption, owing to rapid urbanization and an increasing number of tourists and expiates that often prefer safer processed foods. Also, the country has stringent packaging regulations regarding food and beverages.
• Moreover, the increasing demand for packaged food in the country is augmenting the demand for corrugated board packaging. With the growing number of single households requiring more takeaway and delivery food services, the market requirement food service sector has been reshaped, driving the growth of the market studied in the country. For instance, according to Bayt.com, around 26% of consumers in the United Arab Emirates opt for home delivery of food during Ramadan.
• Many companies offer retail-ready packaging of foods, such as snacks, confectionery, and dairy products, aiding the market study's growth. The retail-ready packaging is a significant cost saver for retailers. It is estimated that these secondary packaging formats could reduce shelf restocking and handling costs by up to 50%.
• Furthermore, corrugated cases ship goods to an online retailer warehouse or fulfillment center. There is an emerging trend of weekly or monthly subscription boxes and meal kit services that offer direct-to-consumer delivery of specialist food. This trend has provided a new opportunity for corrugated board suppliers with delivery-friendly formats containing goods within a die-cut interior.

The UAE Corrugated Board Packaging market is concentrated, as various players provide corrugated packaging products for end-users. Some of the key players in the market are Arabian Packaging Co. LLC, Queenex Corrugated Carton Factory, Falcon Pack, World Pack Industries LLC, and Universal Carton Industries LLC. The entry-level barrier is low for this market since the country is increasingly emerging as a startup hotspot in the Middle East. The country has considerable support from government initiatives as a part of its effort to reduce its dependence on the oil and gas industry.

In May 2022, Arabian Packaging Co. LLC, a corrugated packaging company with operations in Dubai's Jebel Ali Industrial Area, made considerable investments in cutting-edge technology and hardware as part of its overall plan. A scalable, fully integrated browser-based solution called ePS Corrugated Business System was created especially for the corrugated manufacturing and display sectors.

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