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United Arab Emirates (UAE) Metal Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

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  • 109 Pages
  • April 2023
  • Region: United Arab Emirates
  • Mordor Intelligence
  • ID: 5764489
The UAE metal packaging market is anticipated to register a CAGR of 4.62% during the forecast period. The market is anticipated to increase significantly during the forecast period, owing to increasing urbanization and rising disposable income. A rapid trend toward healthier lifestyles and growing standards of hygiene and wellness is further anticipated to drive the market in the United Arab Emirates.

Key Highlights

  • Metal packaging options, like aluminum and steel cans, provide superior strength, are durable, and are rigid compared to other materials like glass or steel. The key characteristics of these metal containers are rather significant in packing and distributing various edible and non-edible commodities. Producers of several products always strive to provide clients with the ideal experience possible when handling completed items. Metal packaging solutions help clients accomplish their objectives since they can endure even the roughest handling, jerks, and jolts without endangering their safety.
  • Further, recycling metals generally result in minimal unnecessary waste. This benefits the environment. Metal packaging solutions have shown to be an ideally acceptable material on this front, as several organizations around the nation are emphasizing the use of recyclable materials in the packaging business. For instance, Sharjah-based Pan Gulf International Metals Industry LLC is one of Asia's prominent ferrous and non-ferrous metal scrap processors, with operations in many other nations. PGI Group recycles any volume and recyclable metal waste. According to the business, more than 200,000 MT of volume is recycled annually.
  • Metal packaging is significantly more resistant to wear and tear, time, damage, bumps, or friction the product may experience during usage or shipping. Additionally, it has long been considered an ideal method for preserving food in emergencies. In addition to oil, UAE exports mainly dates and food products to other countries, where premium and food-preservable packaging is preferable, for which metal containers would be the ideal choice.
  • The market for metal packaging is quickly shifting due to growing environmental concerns. Government initiatives like the plastic ban also assist the market's expansion. The market's growth has increased the need for metal packaging due to the expanding food and beverage industry. Further, the rising need for packaging in aerosol packaging in the paint and chemical industries drives metal packaging demand. However, the market's expansion is anticipated to be constrained by factors, including rising material costs and environmental problems associated with mining metals such as steel and aluminum.
  • Metal packaging sales declined due to the COVID-19 pandemic's negative market impact. The pandemic hampered supply chains and forced market participants to shut down their production facilities while under lockdown. However, the demand for effective eco-friendly packaging options for food and drink is driving market expansion. Further, the Russia-Ukraine war has an impact on the overall packaging ecosystem.

United Arab Emirates Metal Packaging Market Trends

Increasing Urbanization and Rising Disposable Income May Drive the Market Growth

  • Increased urbanization in the country is a driving factor for businesses to expand their capacity for producing metal cans and containers. Market participants are also being forced to increase their production capacity due to the spread of organized retail.
  • Increased economic activity, a growing population, and growth in different socioeconomic engagements all affect the urbanization process in the country. Therefore, the country's socio-ecological initiatives are motivated by the urge to explore green packaging solutions such as metal packaging.
  • Compared to the previous year (2020), which recorded 87.05%, the percentage of people living in the United Arab Emirates' urban areas increased slightly in 2021 to 87.3%. Nevertheless, the share rose to its maximum level throughout the year.
  • Further, significant population shifts from rural to urban regions have occurred, and foreign labor has also been brought into Dubai. Dubai has become a dream city for international investors, businesspeople, and employees across all economic sectors because of government policies that support free trade and globalization.
  • Furthermore, people in the UAE are spending more money due to the rising GDP and disposable income, driving the adoption of premium and eco-friendly packaging materials like metal packaging products. The convenience food and beverages market has shown remarkable growth as incomes and young consumers have grown due to rapid urbanization. Additionally, the buyer is encouraged to look for convenience in regular products like food due to working professionals' hectic schedules.

Beverages Segment to Hold Significant Market Share

  • Metal packing containers in the country are increasingly used in packaging due to their durability and portability. Nowadays, many beverage cans feature easy-open lids, which makes them more comfortable to use and better fits the fast-paced lifestyle of modern civilization. They are also commonly utilized in tourist locations. Beer, soda, and even wine are frequently packaged in aluminum cans.
  • Owing to the increasing consumption of both alcoholic and non-alcoholic beverages, such as energy drinks and carbonated drinks, in GCC, there is significant demand for metal cans in the region. According to a new Dubai Chamber of Commerce report, the UAE's food and beverage trade grew steadily to more than USD 20 billion in the first nine months of 2021.
  • Moreover, consumer trends, such as a preference for small-size and multi-pack packaging formats, are also supporting the volume growth of the metal cans market in the region. For instance, the Arab Beverages Conference stated that the beverage industry is one of the Arab world's rapidly growing industries. The vast majority of products offered at UAE marketplaces include juices, malt, non-alcoholic beverages, soft drinks, water, sports drinks, and cordials. Moreover, the beverage market was estimated significantly expand by June 2022, with the UAE markets reaching USD 1.2 billion.
  • According to ITC, in 2021, UAE exported beverages, spirits, and vinegar valued at around USD 678.52 million, a 13% increase in exports from the previous year (2020), valued at about USD 600 million. The significant rise in exports of beverages increases the demand for metal packaging companies to increase their production capacities in the country.
  • Further, the market for metal cans is expected to develop rapidly due to rising consumer awareness of using non-carcinogenic materials and increasing demand for lightweight packaging. However, the use of metal cans is being challenged by the prospect of replacing them with polymer-based packaging materials, such as polyethylene and polyethylene terephthalate.

United Arab Emirates Metal Packaging Market Competitor Analysis

The United Arab Emirates (UAE) metal packaging market is moderately fragmented owing to the presence of several market players in the region and the growing adoption of metal cans for packaging across the industries in the country. The market players are providing innovative solutions in the nation to gain maximum market traction. Some of the vendors operating in the market include SAPIN U.A.E., Middle East Cans Industry Ltd, Gulf Cans Industries - Canco LLC, Middle East Metal Can LLC (Trinity Holdings), Dayal Metal Containers Factory LLC, Emirates Metallic Industries Company Limited (EMIC), Al Fujairah Steel Barrels and Drums LLC, Balmer Lawrie (UAE) LLC, and Sadaf Tous Plastic Industrial Co., among others.
  • October 2022: Ball Corporation announced that their infinitely recyclable Ball Aluminum Cup will now come in two additional sizes, including the newly introduced 9-ounce and 12-ounce cup sizes. It would help the business fulfill the rising demand from customers for environmentally friendly items. Customers can offer drinks in various quantities, including beer, cocktails, wine, soda, and juice.

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  • The market estimate (ME) sheet in Excel format
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Table of Contents

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
4.1 Market Overview
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitutes
4.3.5 Intensity of Competitive Rivalry
4.4 Assessment of the Impact of COVID-19 on the Market
5.1 Market Drivers
5.1.1 Increasing Urbanization and Rising Disposable Income May Drive the Market Growth
5.1.2 High Recyclability Rates of Metal Packaging
5.2 Market Challenges
5.2.1 Health Issues Concerning Food Contact with Metallic Elements
5.2.2 Lower Cost of Substitute Products may Restrain the Market Growth
5.3 Overview of Global Metal Packaging Market
6.1 By Material Type
6.1.1 Aluminum
6.1.2 Steel
6.2 By Product Type
6.2.1 Cans Food Cans Beverage Cans Aerosol Cans
6.2.2 Bulk Containers
6.2.3 Shipping Barrels and Drums
6.2.4 Caps and Closures
6.2.5 Other Product Types
6.3 By End-User Vertical
6.3.1 Beverage
6.3.2 Food
6.3.3 Paints and Chemicals
6.3.4 Industrial
6.3.5 Other End-users
7.1 Company Profiles
7.1.1 Ball Corporation
7.1.2 Crown Holdings Inc.
7.1.3 Can-Pack SA
7.1.4 SAPIN U.A.E.
7.1.5 Middle East Cans Industry LTD
7.1.6 Gulf Cans Industries - Canco LLC
7.1.7 Middle East Metal Can LLC (Trinity Holdings)
7.1.8 Dayal Metal Containers Factory LLC
7.1.9 Emirates Metallic Industries Company Limited (EMIC)
7.1.10 Al Fujairah Steel Barrels and Drums L.L.C
7.1.11 Balmer Lawrie (UAE) LLC
7.1.12 Sadaf Tous Plastic Industrial Co.

Companies Mentioned (Partial List)

A selection of companies mentioned in this report includes, but is not limited to:

  • Ball Corporation
  • Crown Holdings Inc.
  • Can-Pack SA
  • SAPIN U.A.E.
  • Middle East Cans Industry LTD
  • Gulf Cans Industries - Canco LLC
  • Middle East Metal Can LLC (Trinity Holdings)
  • Dayal Metal Containers Factory LLC
  • Emirates Metallic Industries Company Limited (EMIC)
  • Al Fujairah Steel Barrels and Drums L.L.C
  • Balmer Lawrie (UAE) LLC
  • Sadaf Tous Plastic Industrial Co.