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United Arab Emirates (UAE) Disposables (Single-Use) Packaging - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2019 - 2029

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  • 141 Pages
  • February 2024
  • Region: United Arab Emirates
  • Mordor Intelligence
  • ID: 5661657
UP TO OFF until Mar 31st 2024
The United Arab Emirates Disposables Packaging Market size is estimated at USD 1.42 billion in 2024, and is expected to reach USD 1.68 billion by 2029, growing at a CAGR of 3.45% during the forecast period (2024-2029).

Key Highlights

  • The increasing importance of factors, such as timeliness, convenience, and variety related to food items among consumers, poses huge potential for food disposables in the UAE market. Moreover, consumers' hectic lifestyle has given rise to the trend of takeout and catering services. The food service disposables market is expected to witness growth in the coming years on account of the increasing online delivery services by restaurants, such as QSR (quick service restaurants), retail outlets, and coffee shops.
  • The rise of online delivery platforms and mobile applications supports the growth of throwaway products, especially containers and dinnerware. An increasing number of diners in the Gulf region are tapping into smartphone applications to order meal deliveries, a trend that is anticipated to accelerate as technology redefines the food sector and attracts investment.
  • The online food delivery services market has been increasingly witnessing a rise in investments in the country. Several start-ups are launching their operations in the United Arab Emirates with newly acquired investments. For instance, in December 2021, UAE-based GrubTech, a platform for restaurants and cloud kitchens, raised a USD 13 million Series A investment. The company planned to use these funds to develop innovative solutions and extend its reach into new markets.
  • Food packaging is becoming a growing global concern owing to a large amount of waste it generates and the chemicals it contains that can be detrimental to health. Plastic packaging includes many plastic types, from Styrofoam to clear plastic "clamshell" packages to the lids on takeout coffee cups. The raw materials used in plastic packaging might be harmful to the health, or harmful chemicals might be added to the plastic to make it more functional. The growing concern regarding this environmental and health hazard poses a challenge to the market.
  • During the COVID-19 pandemic, the United Arab Emirates' economy witnessed a downturn. It was largely due to the shutdown and reduced operations of several organizations. Several major events, such as Expo 2020 and major activities had to be postponed or canceled, impacting the food services industry in the country. Malls in the country, where most retail outlets are located, were completely shut down for a significant time, which increased the impact on the sector. But the plastic industry recovered from the downturn by seizing the pandemic as an opportunity to try to convince people that single-use plastic is necessary to keep people safe and that reusables are dirty and dangerous. The priority of hygiene to combat the spread of the COVID-19 pandemic led to a sharp increase in the consumption of disposable plastic products, single-use water bottles, cutlery, packaging, and medical supplies.

UAE Disposables (Single-Use) Packaging Market Trends

Increasing Demand for Online Food Delivery Service

  • Online food delivery services are burgeoning in the country with the entry of CareemNOW, Deliveroo, Talabat, and others. Foodonclick.com was the first company to develop the concept of online food delivery in the United Arab Emirates. For instance, Carrefour, a retail stores chain, witnessed its online marketplace demand by 6-fold.
  • According to Talabat, in Q1 2021, Talabat accounted for the largest share of the food delivery market in the United Arab Emirates, at 74%. Talabat is one of the Middle East's largest online food delivery platforms.
  • In response to the growing demand, new players are also entering the industry through various online channels. F&B vendors are going the technology way to win the competition by launching food apps with multiple options for consumers. For instance, Abu Dhabi-based food and beverage maker Agthia Group PJSC 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.
  • Further, new limited-service restaurants have succeeded in establishing cloud or ghost kitchens. The trend of third-party online food ordering services is expected to rise as these enable many small and independent restaurants to reach out to the wider population. Moreover, the rise of quick service restaurants (QDR), such as food trucks and online deliveries, would further contribute to the demand for food service disposables.
  • Moreover, In February 2021, Noon, a UAE-based online marketplace, announced to enter the online food delivery market in the country. This move has been financed by the Public Investment Fund (PFI) of Saudi Arabia.

Quick Service Restaurants (QSRs) Segment Driving the Market Growth

  • Quick service restaurants (QSRs) offer low-cost food options, focusing on speed of service. The minimal table service and emphasis on self-service make this different from traditional restaurants. Moreover, at QSRs, food, and beverages are paid for before consumption. Over the last decade, the food service market in the country witnessed the growth of several international QSR chains and home-grown brands offering varied cuisines suiting the changing consumer preference.
  • QSRs offer a wide variety of menu items, and almost all the menu items are intended to be eaten on the go, meaning they do not require the use of cutlery. Therefore, most food products in QSRs are consumed directly from a container or package.
  • Single-use food service packaging in QSRs has become an incredibly important part of the fast-paced life in the region. With less time for meal preparation at home, more people are relying on fast food for meals. Single-use packaging allows food service establishments to package meals in a sensible, safe, and cost-effective manner while providing customers with a convenient and efficient way to transport meals.
  • The country has a fast-expanding fast-food restaurant business. The high disposable incomes of the UAE residents and the large number of shopping malls in the country are the two key driving factors that make the United Arab Emirates an attractive market for gauging consumer demands for particular fast-food businesses and act as a launching pad for these businesses' regional operations.
  • According to a survey in 2021, Posist, a cloud-based restaurant technology platform, in collaboration with Dubai Restaurants Group, anticipated that more than 75% of restaurant operators could increase their revenue to higher than pre-COVID-19 times. According to the survey, quick service restaurants would potentially increase unit growth by exploring investments in cloud kitchens as well as building an efficient delivery setup.

UAE Disposables (Single-Use) Packaging Industry Overview

The United Arab Emirates Disposables (Single-Use) Packaging Market has a wide portfolio of suppliers from the local and international markets. This factor leads to high competition among the vendors. In many cases, due to the absence of multiple distribution channels, the vendors directly interact with the end-users to sell their products. This scenario leads to long-term deals with end-users. Hence, the vendors often choose to retain their clients or make new clients through competitive pricing strategies. Additionally, as most of the packaging material is sourced from imports, there is high competition among the suppliers to capture a limited number of players in the market. This factor intensifies the competitive rivalry among local and foreign manufacturers. Some of the key players in the market include in UAE are Jebel Pack Llc, Detpak - Detmold Group, Falcon Pack Precision Plastic Products Co. (LLC), and A1 Industry Plastic Products
  • June 2022 - Detpak supported the City of Adelaide in their pilot incentive scheme recently launched to improve waste diversion by encouraging eligible cafés along Rundle Mall to switch to compostable food packaging from using single-use plastics.
  • April 2022 - Free The Seed Sdn Bhd, a Malaysian biotechnology company that manufactures biodegradable products from rice straw, partnered with HotpackPackaging Industries LLC to construct up to 10 new biodegradable packaging factories in Gurun, Kedah worth MYR 400 million (USD 100 million) over a period of 10 years. The construction of the first 3,200 sq m production plant, which will be located next to Free the Seed's existing facility, will begin in May 2022 and is expected to complete in August 2022.

Additional Benefits:

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

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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 Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitutes
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
4.4 Assessment of the Impact of COVID-19 on the Industry
5.1 Market Drivers
5.1.1 Increasing Demand For Online Food Delivery Service
5.2 Market Challenges
5.2.1 Environmental and Health Concerns
5.3 Market Opportunities
6.1 By Product Type
6.1.1 Containers
6.1.2 Trays
6.1.3 Plates and Bowls
6.1.4 Boxes and Cartons
6.1.5 Cups (Beverage and Portion)
6.1.6 Lids and Domes
6.1.7 Clamshells
6.1.8 Bags and Wraps
6.1.9 Other Product Types
6.2 By End-user Application
6.2.1 Quick Service Restaurants
6.2.2 Full-service Restaurants
6.2.3 Coffee and Snack Outlets
6.2.4 Retail Establishments
6.2.5 Institutional
6.2.6 Hospitality
6.3 By Material
6.3.1 Aluminum Foil
6.3.2 Retail Bags (Paper)
6.3.3 Napkins (Part of Tissue and Paper Category)
7.1 Company Profiles
7.1.1 Jebel Pack LLC
7.1.2 Detpak - Detmold Group
7.1.3 Falcon Pack
7.1.4 Precision Plastic Products Co. (LLC)
7.1.5 A1 Industry Plastic Products
7.1.6 Panache International Fz Llc
7.1.7 Gulf East Paper & Plastic Industries LLC
7.1.8 Al Bayader International
7.1.9 Hotpack Packaging LLC
7.1.10 Richoos General Trading and Packaging Industries
7.1.11 Huhtamaki Flexibles UAE (Huhtamaki Oyj)
7.1.12 Prestige Packing Industry
7.1.13 International Food Services (IFS)
7.1.14 Cristal Plastic Industrial LLC

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Jebel Pack LLC
  • Detpak - Detmold Group
  • Falcon Pack
  • Precision Plastic Products Co. (LLC)
  • A1 Industry Plastic Products
  • Panache International Fz Llc
  • Gulf East Paper & Plastic Industries LLC
  • Al Bayader International
  • Hotpack Packaging LLC
  • Richoos General Trading and Packaging Industries
  • Huhtamaki Flexibles UAE (Huhtamaki Oyj)
  • Prestige Packing Industry
  • International Food Services (IFS)
  • Cristal Plastic Industrial LLC