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

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

The UAE flexible packaging market is expected to register a CAGR of 4.2% over the forecast period. There has been an impact on the overall packaging ecosystem owing to Russia- United Kingdomraine war. Regulatory reforms in the Emirates are the major factors driving investments and changes in the packaging industry. The country has changed its policies and regulations to attract foreign investment and enhance its local manufacturing. The trend is anticipated to boost the demand for flexible packaging in the forecast period.

• The market for flexible packaging in the United Arab Emirates is anticipated to rise in response to the rising trend of consumer goods, including food, drinks, and medicines. Demand for practical, portable packaging solutions is growing as a result. Packaging now places a greater emphasis on convenience and sustainability as the nation becomes more urbanized. The general trend toward flexible packaging is to capitalize on processed food packaging and adjust to rapidly evolving consumer preferences.
• There has been a considerable growth in demand due to the emergence of modern retail formats in UAE, along with the accessibility of a larger range of frozen ready-to-eat foods, luring shoppers who value convenience over time. Furthermore, the popularity of packaged food has grown due to the rising impact of western eating patterns among local customers. Additionally, a sizable share of immigrants, tourists, and young consumers are fueling demand for prepared, processed, and frozen goods. All this is expected to impact the demand for flexible packaging.
• Agthia Group PJSC, one of the top food and beverage businesses in the UAE, announced the completion of its strategic purchase of BMB Group in December 2021. BMB Group is a regional provider of healthy snacks and meals with a rising global presence. The acquisition strengthens Agthia's position in the quickly expanding snacking and healthy food sectors. With more than 2,000 SKUs available in more than 23 countries worldwide, BMB has been a pioneer in confectionery and health food for almost 15 years. The list also includes United States, Saudi Arabia, and the United Arab Emirates, home to significant shops like Walmart, Sam's Club, and Costco, supplied by BMB. Such purchases will boost the flexible packaging business in the food sector.
• However, packaging is one of the primary sources of plastic waste. The plastic waste problem in the United Arab Emirates is a major environmental issue related to pollution and safe disposal. Despite efforts to use alternative materials and recent developments in biodegradable plastics, the situation still needs improvement. Also, the rising sustainability concern the consumers are opting for paper-based, propelling the demand for paper-based flexible packaging.
• The economy of the United Arab Emirates had a slump during the COVID-19 epidemic. According to International Monetary Fund (IMF), the nation's GDP decreased by 6.14% in 2020 compared to 2019. It was primarily caused by the closure of several organizations and the scaling back of their operations. The COVID-19 epidemic forced the UAE to postpone or cancel several important events, including Expo 2020, and key activities, including meetings, conferences, and exhibits, which affected the country's food services business. Malls across the nation, where the bulk of retail stores is situated, were shut down entirely for an extended period, which significantly impacted the industry.

• The United Arab Emirates is experiencing substantial development due to the rapidly changing technological landscape, rising smartphone and social media usage, and modifications to the nation's conventional online purchasing through e-commerce. Setting up social media stores to trade and sell through social media platforms is a growing trend among small company owners and entrepreneurs.
• Due to the increasing demand, several companies are joining the market through various internet platforms. Food and beverage vendors use a technological strategy to stand out from the competition by launching different food apps for customers. For instance, Agthia Group PJSC, an Abu Dhabi-based food and beverage maker, is shifting to online sales and home deliveries to help offset the COVID-19 pandemic's impact on its business. The company has introduced its e-commerce channel, and sales through retailers' online platforms are growing.
• According to The Department of Economy & Tourism in Dubai, The United Arab Emirates (UAE) is projected to experience e-commerce revenues of around USD 27.08 billion in 2022. E-commerce sales value is estimated to grow by an average of 23 % per year between 2018 and 2022 in the UAE.
• The growing internet penetration rates majorly drive the rise of the e-commerce sector in the region. This has supported market expansion over the past two years, increasing income, high smartphone device ownership rate, the growing presence of international players, and improved supply chain solutions. For instance, according to Telecommunications Regulatory Authority (UAE), internet subscriptions in the United Arab Emirates were around 3.68 million in 2022. Compared to December 2020, this number reflects an increase of about 700 thousand subscriptions.

• Flexible packaging is commonly used for food products, such as smoothies, snacks, dairy, and others. The packaged food market has been witnessing growth in UAE due to innovations in food processing techniques and changes in consumer lifestyles which is expected to fuel the product demand during the forecast period.
• The packaging is resistant to heat and moisture, is spill-proof, and provides excellent barrier properties, which are essential in any food packaging solution. A flexible packaging solution caters to all of this, adding to the extended shelf life compared to rigid packaging. The excellent barrier properties also keep the harmful toxins and UV rays away and provide a protective shield to the inner food product.
• Additionally, numerous companies are investing in the sector in response to the nation's demand for sustainable food packaging. In October 2021, Talabat, an online meal delivery service, announced a sustainable packaging initiative at its two branches in Qatar and the United Arab Emirates to cut carbon emissions and plastic waste. The program is a component of Berlin-based Delivery Hero, the parent business of Talabat, which intends to introduce it initially in eight different international regions.
• According to Network International, the top enabler of digital commerce in the Middle East and Africa, standalone restaurants in the UAE experienced a significant increase in online meal delivery spending as e-commerce payments soared in 2020 as a result of the coronavirus outbreak. Additionally, food delivery restaurants chose to invest in Zoondia, one of the leading app development companies in the UAE, to stay competitive and meet the constantly shifting needs of their customers. The expansion was made possible by the rising internet penetration and increasing sales value of the food service restaurant subsector in the United Arab Emirates.
• This is evident from the fact that, according to the Government of Canada, the fast food restaurants in the United Arab Emirates (UAE) are projected to generate the highest sales value in the restaurant subsector in 2022, which is estimated to reach USD 4.51 billion, compared to USD 3.66 billion in 2018, while full-service restaurants generate sales worth around USD 2.34 billion in 2022, compared to USD 1.94 billion in 2018.

The UAE flexible packaging market is fragmented due to the presence of numerous local and global vendors in the market and the maturity status of the industry in the country. The market players are finding new ways, such as strategic partnerships or launching new products, to accelerate the development of flexible packaging in the United Arab Emirates.

• February 2022: Al Bayader International, a manufacturer and provider of packaging and cleaning solutions in the UAE, announced a new business division created especially for the food industry. These solutions are a part of a more extensive portfolio of inventive food solutions that the new F&B division of the corporation has developed via intensive research and development. Al BayaderInternational's food section expands its present F&B packaging business to offer a one-stop shop for the industry.
• February 2022: Hotpack, a prominent UAE-based player in the food packaging business, announced that the company would present its sustainable packaging solutions at the GulfoodSummit 2022. The firm altered its packaging specifications so that its products would still be functional, convenient, and affordable while incorporating sustainability and cleanliness.

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