Middle East and Africa Flexible Packaging Market - Growth, Trends, COVID-19 Impact, And Forecasts(2022 - 2027)

The Middle East and Africa Flexible Packaging Market are expected to register a CAGR of 3.92% over the forecast period (2022 - 2027). Flexible packaging refers to using non-rigid materials to package items, entitling to more cost-effective and adaptable solutions. It is a relatively recent packaging method that has increased in popularity due to its superior efficiency and low cost.

Key Highlights

• The flexible packaging business sets major packaging trends by boosting safety, design flexibility, convenience, and sustainability. Technical advancements and innovative design have resulted in a multitude of advantages. Regenerative Gasification, for instance, is a science-based solution to the intractable recycling issues faced by modern multi-layered, multi-material products and packaging.
• The boost comes when Gulf countries are rushing to promote environmentally friendly lifestyles. As part of a more comprehensive goal to reduce plastic consumption, Abu Dhabi has already banned single-use plastic bags. The United Arab Emirates, which will host the COP28 meeting in 2023, has also released a Circular Economy Policy that promises to assist businesses in adopting environmentally friendly production practices. Moreover, Saudi Arabia recently pledged to achieve net-zero emissions by 2060.
• In addition, according to the Flexible Packaging Association, food and beverages account for over 2/3 of all packaging, and flexible packaging accounts for roughly 90% of this. Flexible packaging's benefits are also propelling it into new product categories. Therefore the significant demand from the food and beverage sector is analyzed to boost the flexible packaging market.
• With the breakout of COVID-19, flexible packaging makers have been inundated with several challenges. Supply chain interruptions, a lack of raw materials utilized in the manufacturing process, workforce shortages, fluctuating pricing that could cause the final product's production to inflate and go over budget, shipping issues, and so on are the implications of lockdown.
• Flexible packaging's perceived value is hampered by the premise that its composite materials are complex for consumers and recycling centers to recycle. It functions well at all other points in the product life cycle except for end-of-life. This is analyzed to pose a challenge for the market during the forecast period.

Key Market Trends

Food and Beverage Industry is Expected to Hold Major Share

• Flexible packaging reduces waste at every stage of its life cycle. It uses less energy and material to manufacture, costs less to transport due to its reduced weight, and contributes less waste to landfills. Food waste reduction is one of its most important contributions.
• Food waste also contributes significantly to greenhouse gas and methane gas emissions at landfills. Food waste can be reduced by general packaging and flexible packaging. Resealable, cook-and-serve packaging, prolonged shelf life, portion control, and mobility are a few benefits of flexible packaging that contribute directly to waste reduction.
• Flexible packaging is being enhanced with new processing technologies that claim to prolong the shelf life and freshness even further without the need for preservatives. The options include vacuum packing, extreme high-pressure processing (HPP), or even replacing oxygen in packaging with another inert gas (modified atmosphere packaging - MAP). These methods are well-suited to flexible packaging.
• Further, In January 2022, Kerry Group announced Middle East expansion continues with the opening of a new facility at its Jeddah location in Saudi Arabia. Kerry, the taste and nutrition firm, has built a new 21,500-square-foot plant in the Kingdom of Saudi Arabia's Jeddah.
• Over the last four years, Kerry invested more than EUR 80 million in the region, and this new facility, which is the company's largest in the Middle East, North Africa, and Turkey (MENAT) region, is one of the most modern and efficient in the world, producing great-tasting, nutritious, and sustainable food ingredients that will be distributed throughout the Middle East.
• Kerry will use its global innovation technologies, which have been adapted to local tastes, to assist food and beverage companies in meeting the growing consumer demand in the region for healthier, tastier, and more sustainable food and beverages, particularly in the snack, meat, and bakery sectors, through the new facility.
• In April 2022, Cargill Foods announced that it is broadening its reach to META(Middle East, Turkey, and Africa). META is a priority for Cargill Turkey to assist dairy manufacturers in better responding to changing consumer demands. Cargill Turkey has invested USD 5 million to enhance its INFUSE by Cargill service by opening a technological application center and a high-tech ingredient blending production unit in Bursa, Orhangazi, Turkey.

UAE is Expected to Hold Significant Share During the Forecast Period

• Middle Eastern manufacturers of plastic bags and pouches are expected to access lower-cost feedstock and raw materials, such as crude oil and polypropylene, promoting local manufacturing of plastic pouches. As a result, flexible plastic packaging is becoming more prominent in the e-commerce business.
• As governments and businesses set ambitious targets to combat climate change, eco-friendly packaging solutions are rising. PepsiCo added "Reinvent" to the renowned tagline "Reduce, Reuse, and Recycle" to reflect this. In November 2021, the food and beverage giant established its Greenhouse Accelerator in the Middle East to promote environmental sustainability in the region.
• Many diverse stakeholders are required to achieve a circular economy. PepsiCo is exploring the region's booming startup environment for new ideas. PepsiCo has already begun seeking public-sector support for the accelerator. The UAE Ministry of Climate Change and Environment has partnered with PepsiCo and provides mentors to Greenhouse Accelerator startups.
• Further, the growing government initiatives in the region are bolstering the market growth rate. For instance, in February 2022, The UAE Food & Beverage Business Group and the Ministry of Industry and Advanced Technology (MoIAT) collaborated to develop the Nationals Development Pathway (NDP), a series of initiatives aimed at boosting the local food production ecosystem and promoting food security.
• In February 2022, The UAE Food Bank stated that it had inked multiple strategic cooperation agreements with several firms attending the 27th edition of Gulfood, the largest food, and beverage sourcing exhibition, at the Dubai World Trade Centre (DWTC). According to the agreements, surplus food donated by corporations must adhere to the Bank's norms, while food stored and packaged must meet Dubai Municipality's food safety and hygiene standards. Furthermore, the agreements state that enterprises must send information to the Bank on the quantity and durability of surplus food.
• Adding to these, the country sees a significant demand in the food and beverage sector during the festive season, which further boosts the demand for flexible packaging. As stated by Dubai Statistics Center, the prices of fish and seafood, vegetables, sugar, fruits, bread and cereals, meat, and others significantly rise during the festive season.
• During the holy month of Ramadan in 2022, 289 subsidized food items were available for Emirati families at food centers across Abu Dhabi. Families used the Smart Pass digital platform to purchase subsidized food products and even get them delivered at home. In 2021, UAE Food Bank aimed to set a world record by distributing 50,000 meals in five hours. Such steps catered to the major demand for flexible packaging.

Competitive Landscape

The Middle East and Africa Flexible Packaging Market are moderately competitive, with multiple players in the market operating regionally. The market appears to be moderately concentrated, gradually moving towards the fragmented stage with the major vendors in the market adopting strategies such as product innovation and partnerships, among others, to expand their reach and stay competitive in the market. Some of the major players in the market are Amcor, Gulf Packaging Industries Limited, Napco Group, Uflex Limited, Coveris Management GmbH, BASF SE, Huhtamaki Group, Treofan Films, and Mondi Plc, among others.

• March 2022- In an agreement made with Madayn Plastic Company, Comexi, a pioneer in solutions for the flexible packaging printing and converting sector, has announced to expand in the Middle East. With Reifenhauser India Marketing Middle East & Africa (RIMPL MEA) and Comexi, the Oman company has opted to enter the flexible packaging industry to capture a significant portion of the Sultanate's market share. Madayn Plastic has acquired a Comexi F2 ML flexographic press, a Comexi ML2 Evolution laminator, and a Reifenhauser extruder.

Additional Benefits:

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

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