UAE Packaging - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)

The UAE packaging market is expected to grow from USD 10.8 billion in 2025 to USD 11.38 billion in 2026 and is forecast to reach USD 14.75 billion by 2031 at 5.34% CAGR over 2026-2031.

E-commerce expansion, Operation 300bn industrial incentives, and food-security programs are sustaining double-digit demand for compliant pack formats even as regulators tighten material rules. Plastic still anchors volumes, but paper, metal, and bio-based substrates are gaining share as the 30% single-use plastic excise tax and a nationwide ban on non-biodegradable packs by 2026 reshape material choices. Brand owners are paying premiums for traceable solutions that satisfy the Tatmeen serialization mandate in pharmaceuticals and the Federal EPR pilot in fast-moving consumer goods. Parallel upstream investments-most notably ADNOC’s USD 60 billion polyolefins merger with OMV-are redesigning raw-material supply chains, tilting the UAE packaging market toward value-added, compliance-focused growth.

UAE Packaging Market Trends and Insights

E-commerce Boom Fueling Corrugated and Last-Mile Packaging

Surging digital retail orders in Dubai and Abu Dhabi have intensified demand for corrugated shippers, void-fill, and tamper-evident seals that safeguard products in last-mile transit. Large platforms mandate pack designs that withstand temperature swings while complying with Dubai Municipality restrictions on styrene and Oxo-degradable films. Major delivery players now reward vendors that adopt recyclable liners and source-verified inks, a shift that creates premium pricing tiers within the UAE packaging market. Regional board mills are operating near full capacity, spurring investments in high-speed flexo lines and automated palletization. Brand owners migrating to omni-channel sales prefer modular pack footprints to optimize fulfillment center throughput, further lifting corrugated demand. Concurrently, importers of flat-packed boxes target duty-free Jebel Ali zones to tap rising consumption across the wider GCC.

Vision 2030 Incentives Boosting Local FMCG Packaging Demand

The Operation 300bn strategy channels public procurement toward domestic manufacturers, pushing ICV-certified converters to scale output and upgrade to food-grade lines. Priority products include folding cartons, pre-form bottles, and aluminum beverage ends-materials essential for food and beverage producers expanding under “Made in the Emirates” accreditation. SMEs gain subsidized financing and fast-track licensing, accelerating plant commissioning timelines. As upstream polymer capacity from Borouge and Taziz ramps, local converters lock in multi-year resin offtake contracts, anchoring supply security and dampening import reliance. These incentives collectively steer buyer preference toward UAE-made packs, underpinning volume growth and deeper regional integration for the UAE packaging market.

30% Excise Tax on Single-Use Plastics

The Federal Tax Authority now levies a 30% duty on carry bags, cutlery, and selected wrappers, lifting the cost for brand owners by as much as 25% when shifting to compliant substrates.Retailers scramble to source certified compostable alternatives that clear customs without surcharge, yet regional production of bio-resins remains limited. Dubai Municipality enforces spot-checks along Jebel Ali and Al Quoz corridors, seizing non-compliant stock and issuing penalties. The abrupt margin squeeze accelerates adoption of downgauged films and reusable containers, but small food outlets report working-capital strain as inventory write-offs mount. Large supermarket chains negotiate volume rebates with global suppliers, softening the immediate impact yet amplifying competitive disparity within the UAE packaging market.

Other drivers and restraints analyzed in the detailed report include:

• National Food Security Strategy 2051 Driving High-Barrier Food Packs
• Rapid Rise of Cloud Kitchens and Ready-Meal Services
• Volatile Resin Costs from Gas-to-Chemicals Projects

Segment Analysis

Plastic maintained a 44.38% foothold in 2025 as converters capitalized on existing extrusion lines and ADNOC’s resin output. Yet excise taxes and the impending 2026 non-biodegradable ban propel brand owners toward fiber-based alternatives, lifting paper’s 6.91% CAGR. Corrugated mills in Abu Dhabi and Sharjah run three-shift schedules to meet e-commerce and produce-box orders, aided by duty exemptions on recovered fiber imports. Aluminum and steel cans preserve niche strength in energy drinks and industrial lubricants, buoyed by their infinite recyclability narrative that resonates with municipal climate targets. Biopolymers gain momentum: a forthcoming PLA megaplant promises regional volume, signaling a future where bio-resin blends augment paper laminates in the UAE packaging market.

Developers of molded fiber foodware court quick-service outlets eager to phase out expanded polystyrene, yet supply remains capacity-constrained. Multilayer barrier paper, coated with aqueous or bio-polymer films, is being tested in dairy and snack categories that formerly relied on BOPP. However, the fragmented local fiber-recycling ecosystem complicates closed-loop ambitions; converters therefore secure post-consumer material from Europe to hit recycled-content targets. The UAE packaging industry is lobbying for harmonized collection schemes to accelerate domestic fiber recovery.

Cartons and corrugated boxes delivered 47.12% of 2025 revenues as retailers shifted to shelf-ready packs conducive to conveyor automation. Inline digital printers enable micro-runs, lowering artwork changeover cost for regional promotions and thereby anchoring paper’s grip on the UAE packaging market. Energy drink brands and craft brewers fuel the 6.45% CAGR in metal; canmakers install neck-making lines in KIZAD to localize supply, slashing lead times for exporters to Africa. Rigid PET jars in condiments hold volume but surrender growth to aluminum tins and glass jars in premium spreads, where sustainability messaging carries weight.

Plastic drums and IBCs still dominate chemicals but face scrutiny under the Federal EPR pilot, compelling producers to guarantee recollection and remanufacturing. Converters thus test HDPE-regrind blends, although food-grade rPET scarcity persists due to delayed GCC standards adoption. Integrated players offering both folding cartons and metal ends hedge material risk, balancing revenue streams as clients diversify specs across portfolios in the UAE packaging market.

The UAE Packaging Market Report is Segmented by Material Type (Paper and Paperboard, Plastic, and More), Product Type (Paper and Paperboard Product Type, Plastic Product Type, and More), Packaging Format (Rigid Packaging Format, and Flexible Packaging Format), End-User (Food, Beverage, Pharmaceutical and Medical, Agriculture, Automotive, Industrial and Chemical, and More). The Market Forecasts are Provided in Terms of Value (USD).

List of companies covered in this report:

• Tetra Pak International SA
• Mondi PLC
• Amcor PLC
• International Paper Company
• Arabian Packaging Co. LLC
• Hotpack Packaging Industries LLC
• Gulf East Paper and Plastic Industries LLC
• Corys Packaging LLC
• Amber Packaging Industries LLC
• Diamond Packaging Holdings LLC
• Al Bayader International LLC
• Universal Carton Industries LLC
• Rotopak LLC
• Falcon Pack Industries LLC
• Future Pack Plastic Products LLC
• Multiplex Packaging LLC
• Al Huraiz Packaging Industry LLC
• Express Pack Print LLC

Additional benefits of purchasing this report:

• Access to the market estimate sheet (Excel format)
• 3 months of analyst support