UAE Plastic Packaging Films - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

Key Highlights

• The adoption of modern retail formats and an expanding array of frozen ready-to-eat foods in the United Arab Emirates has significantly boosted demand. This trend caters to time-pressed consumers seeking convenient grocery options. Furthermore, a shift toward Western eating habits among locals, bolstered by a rising immigrant, tourist, and young consumer base, is fueling the demand for packaged food.
  

  Key Highlights

  • The shift toward Western eating habits, which often involve pre-packaged and ready-to-eat meals, requires high-quality plastic packaging to ensure food safety, convenience, and extended shelf life. This trend boosts the demand for various types of plastic packaging films designed for these products.
• The growth of the online market translates to increased e-commerce activities. E-commerce relies heavily on efficient and secure packaging solutions to protect goods during shipping and handling, driving the demand for durable and reliable plastic packaging films. Agility Logistics, a Kuwait-based firm, reported that in 2023, the United Arab Emirates ranked the 28th largest online market globally.
• Businesses are ramping up their investments and expertise to meet the escalating demand for plastic packaging films. For instance, in March 2023, Hexxa Flexible Packaging, based in Ras Al Khaimah, announced plans to acquire and install two new machines, aligning with the region's surging demand for efficient, flexible packaging solutions, including plastic packaging films.
• The fluctuations in prices for energy, transport, and logistics majorly impacted the prices of plastic resins. Moreover, plastic packaging films are also highly dependent on the export and import of raw materials; the geo-political situations, trade laws, import and export tariffs, price fluctuation, and evolving environmental concerns also impact the prices of different raw materials in plastic packaging films.

United Arab Emirates Plastic Packaging Films Market Trends

Polyethylene Terephthalate (PET) is Expected to Witness Significant Growth

• PET (polyethylene terephthalate) plastic films are known for their mechanical properties, clarity, and versatility. They have high tensile strength, good dimensional stability, and resistance to tearing, making them durable and reliable. PET films provide an excellent barrier against gases, moisture, and odors, which is crucial for food packaging.
• rPET has several advantages over substitute materials, including lighter weight, greater durability, and greater adaptability. This makes it a polymer that is frequently utilized in packaging films. The lifespan of this class of polyester is brief. As a result, practically every product sold ends up as garbage. As a result, it has become a high-priority recycling target. It is more suitable as a recovered and recycled material because of its low diffusion coefficient.
• Manufacturers' introduction of recycled PET is set to significantly increase the plastic packaging film market. Using recycled PET aligns with global and regional sustainability goals, addressing environmental concerns related to plastic waste. Manufacturers can reduce their carbon footprint by incorporating recycled materials and supporting circular economy initiatives.
• Higher food expenditure is likely to boost online food shopping, which requires robust packaging solutions to ensure product safety and integrity during delivery. Plastic packaging films are essential for protecting food items during transit, preventing contamination, and maintaining freshness.
  • As per the government of Canada, the United Arab Emirates' annual per capita food expenditure was estimated at around USD 1,826 in 2021, with projections indicating a steady rise, as spending per person is expected to climb to roughly USD 2,059 by 2025.

Food to Register Significant Growth

• With increasing visitors, the United Arab Emirates continues to dominate the Middle East’s food and beverage industry. Due to its large-scale economic development and diversification, the food industry in the United Arab Emirates is one of the largest sectors across the region.
  • As the food and beverage industry grows, the need for plastic packaging films rises. Plastic packaging films are indispensable in the sector, preserving the quality and extending the shelf life of food products.
• Furthermore, in the past few years, the UAE food processing industry has witnessed constant growth.
  • According to the United States Department of Agriculture, more than 568 food and beverage manufacturers and processes exist in the United Arab Emirates. This trend is set to continue as international investments and the government’s efforts to boost domestic food output and self-reliance lead to the emergence and diversification of production facilities. Therefore, the demand for plastic packaging films for food is expected to continue in the coming years.
• The government's efforts to boost domestic food output and self-reliance will lead to a more diverse range of food products being manufactured locally. This diversification requires different types of packaging solutions, thereby increasing the demand for various plastic packaging films tailored to specific product needs.
• Online food retail requires specialized packaging to ensure products are protected during transit. This includes features like moisture barriers, tamper-evident seals, and temperature control, which plastic packaging films can provide effectively.
  • According to the USDA Foreign Agricultural Service, in 2020, the retail value of food e-commerce in the United Arab Emirates was around USD 421 million, and it reached USD 1.07 billion in 2023.

United Arab Emirates Plastic Packaging Films Industry Overview

• May 2024: UFlex, a flexible packaging manufacturer with operations in the United Arab Emirates, launched its offerings in the final quarter of FY24. The company introduced new products specifically designed for labels and flexible packaging. UFlex's packaging films division notably rolled out the 'B-UUB-M' Outstanding Barrier Metallized BOPP Film. This innovative film is crafted to cater to various products, including dry fruits, beverages, chips, snacks, biscuits, cookies, confectionery, and chocolate items.
• August 2023: UFlex launched innovative and sustainable products. Specifically, its Packaging Films division launched the F-PSX, a high-barrier transparent BOPET film. This film features a protective printable layer, a high-barrier vacuum deposit on one side, and a primer-coated or untreated surface on the other.

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