Middle-East and Africa Polyethylene Terephthalate (Pet) Resin Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

Key Highlights

• The growing food and beverage industry and increasing emphasis on recycling are expected to drive the market during the forecast period.
• Stringent regulations regarding the usage of PET and the increasing usage of alternative products may hinder the market growth.
• Increasing use of bio-based PET products is projected to create future market growth opportunities.
• Saudi Arabia is expected to dominate the market and is also expected to witness the fastest CAGR during the forecast period.

MEA Polyethylene Terephthalate Resin Market Trends

Increasing Demand from Food and Beverage Industry

• PET is a plastic material that has found increasing applications in the food and beverage industry for packaging purposes. PET has been replacing glass in food packaging applications owing to its extremely lightweight, easy and efficient transportation, and shatterproof features.
• PET is a very strong and inert material that does not react with foods. It is resistant to attacks by microorganisms and will not biologically degrade. Additionally, unlike glass, PET is extremely lightweight, easy and efficient to transport, re-sealable for efficient on-the-go hydration, environmentally safe, recyclable, and shatterproof. Owing to its chemical inertness and physical properties, especially glass-like transparency, lightweight, and rigidity, PET is widely used as a food packaging material.
• Common applications of PET in the food and beverage industry are bottled water, milk, juices, and carbonated drinks bottles, ketchup, jars for peanut butter, mayonnaise, pickles, jam, and others, sandwich boxes, tubs, and food containers, can laminations, etc.
• In Saudi Arabia, bottled water spending accounted for the largest proportion of soft drink sales, standing at around 55.3% of soft drink spending in 2021. Carbonated drinks accounted for the second largest proportion of soft drinks spending in 2021, accounting for over 26% of soft drinks spending.
• Besides packaging, PET is also used in the food industry for clamshells, deli containers, as well as microwave food trays. Growing population, increase in consumers’ disposable income and purchasing power, and increasing demand for easily transportable and flexible food packaging, etc. are further expected to increase the demand for PET during the forecast period.
• Saudi Arabia’s food and beverage sector increased by 6.3 percent in the first half of 2022. Additionally, according to the Saudi Arabian General Authority for Investment (SAGIA), the spending on food service will grow by 6% per annum over the next five years. As the population in The Kingdom reached about 36 million in 2022, Saudi now holds the largest domestic food & beverage market in the GCC.

Saudi Arabia to Dominate the Market

• Being an oil-producing economy, the country’s interest in other industries was less from the initial phase itself. However, after the emergence and dominance of the non-OPEC countries globally and the high volatility of crude oil prices, Saudi Arabia decided to diversify its portfolio to help the economy grow uniformly.
• The market’s openness and investment opportunities in Saudi Arabia are less when compared to other emerging economies. However, in its 10th development plan, the government is reforming economic policies with investments in diversified sectors and is trying to attract private investments in the country to make it a diversified economy that is not dependent on oil.
• The packaging industry has been witnessing substantial growth in Saudi Arabia, majorly driven by the increasing food manufacturing and processing and growing online food delivery services. The food delivery and apps market in Saudi Arabia is also expanding rapidly; it was valued at USD 511 million in 2021 and is predicted to increase by 10% a year through 2026.
• The Saudi Arabian food manufacturing and processing sector rapidly grew in the past 10 years. The processed food industry in Saudi Arabia is expected to grow significantly, due to the increasing market for frozen foods, chilled processed foods, snacks, and chocolate confectionery.
• The healthcare industry in Saudi Arabia accounts for the largest expenditure in the GCC region, and there is a rising demand for increasing hospital bed capacity and long-term care centers. In 2021, the number of beds in the healthcare sectors was 77,224, an increase from 72,981 in 2019.
• In Gulf Cooperation Council (GCC) countries, Saudi Arabia accounts for 60% of healthcare expenditure, and the sector remains a top priority for the Saudi Arabian Government. In 2022, it spent USD 36.8 billion on healthcare and social development, 14.4 percent of its 2022 budget.
• The increasing healthcare expenditure in the country, along with the privatization of several public hospitals, is expected to drive the demand for healthcare equipment in the country, which, in turn, is expected to drive the PET market in the coming years.

MEA Polyethylene Terephthalate Resin Market Competitor Analysis

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