Middle East & Africa Pulp and Paper Market Outlook, 2029

Swirls of winds of change across the Middle East and Africa come with the pulp and paper industry embracing sustainability and innovation toward meeting the changing demands of a greener future. The middle east region is undergoing accelerated industrialization and urbanization through diversification of economies and infrastructure development. Other countries in the region, including Saudi Arabia, the UAE, and South Africa, continue to intensify industrial activities, which is expected to increase the demand for packaging and paper products in logistics and warehousing as well as numerous other industries.

Rapid urbanization throughout the region has also led to increased consumption of paper products among offices, institutions, and households. In addition, e-commerce growth has caused an enormous level of demand for paper-based packaging solutions, primarily because there is a growing interest of businesses in efficient and sustainable packaging options to cater to a mammoth-sized consumer base. Besides, various government policies across the MEA region are promoting sustainable practices that develop a positive impact on the sector.

Diversification of the economy was done in Saudi Arabia through Vision 2030, targeting the further development of sectors such as pulp and paper by local production initiatives supported by sustainable technologies. In a similar manner, the UAE's Green Growth Strategy encouraged industries to embrace environmentally friendly practices, pushing along the way the shift towards eco-friendly paper products. In South Africa, it has implemented EPR policies to reduce waste and maximize the recycling of activities by using recycled paper and packaging materials. This has furthered opportunities toward sustainability in the pulp and paper industry.

According to the research report, “Middle East & Africa Pulp and Paper Market Outlook 2029” the market is anticipated to add USD 2.72 Billion from 2024 to 2029. MEAs, based on pulps and papers market, are growing rapidly due to the surge in demand in various sectors, including retail, food and beverage, and e-commerce for packaging materials. Also worth mentioning here is the fact that there is a trend towards lightweight and flexible paper-based packaging, which saves cost but definitely attains the sustainability standards. Investments in recycling infrastructure are increasing in order to improve the availability of raw materials and to comply with environmental regulations.

Therefore, to satiate the increasing demand within the market, major players of this region are increasing production capacities while adopting sustainable practices such as using recycled materials and energy-efficient manufacturing. This market is increasingly shifting toward eco-friendly and sustainable paper products due to increasing environmental awareness by consumers and business owners. This trend is demonstrated by growth in the developing activity of biodegradable and recyclable paper products, but mostly in packaging.

Besides, innovation in the technology applied in producing the paper is already changing the industry itself: energy-saving methods are put in place, and alternative raw materials, such as wastes of agriculture, are applied. There are significant partnerships and investments currently underway to increase local pulp and paper production capacity in the region, while countries such as Saudi Arabia take steps to reduce their reliance on imports through the development of domestic manufacturing capabilities.

Market Drivers

• Growth in the Food and Beverage Packaging Industry: The food and beverage industry is expanding in the MEA region, driving the need for paper-based packaging solutions, such as cartons, paper bags, and labels. The preference for paper packaging is rising due to its recyclability, lower environmental impact, and ability to meet regulatory standards for food safety. As consumer awareness of sustainable packaging grows, manufacturers are exploring innovative paper materials that can extend shelf life, improve product safety, and offer eco-friendly branding opportunities. This trend is further supported by regulatory changes encouraging the shift from plastic to paper packaging.

Market Challenges

• Scarcity of Locally Sourced Raw Materials: The availability of raw materials, such as wood pulp, is limited in the MEA region, leading to reliance on imports. This dependency exposes the industry to fluctuations in global pulp prices, logistical challenges, and trade restrictions that can affect production costs and supply stability. The scarcity of local raw materials also limits the development of a vertically integrated pulp and paper industry, as manufacturers must import key inputs. Companies are exploring alternative raw materials, such as agricultural residues and recycled paper, to mitigate these challenges and develop sustainable sourcing practices.
• Inconsistent Regulatory Environment Across Countries: The MEA region has a diverse regulatory landscape, with different countries having varying standards and policies regarding environmental regulations, waste management, and product quality. This inconsistency creates challenges for pulp and paper companies that operate across multiple markets, as they must adapt to different requirements and compliance processes. The lack of uniform regulations also complicates efforts to implement region-wide sustainability initiatives and innovations. Companies often need to navigate complex bureaucratic procedures and develop tailored strategies to meet the specific regulatory demands of each country.

Market Trends

• Adoption of Digital Printing for Packaging and Labels: In the MEA region, the adoption of digital printing technologies for packaging and labels is on the rise. Digital printing offers advantages such as faster turnaround times, high-quality output, and customization capabilities, which are increasingly valued in the growing e-commerce and retail sectors. Companies are utilizing digital printing to create distinctive, branded packaging that enhances the consumer experience and adapts quickly to changing marketing strategies. This trend is fostering the development of high-performance papers that are compatible with digital printing, supporting growth in specialty paper markets.
• Emergence of Eco-friendly Paper Mills: There is a growing trend in the MEA region towards establishing eco-friendly paper mills that utilize sustainable practices and raw materials. New mills are incorporating technologies for water conservation, energy efficiency, and the use of recycled fibers, aligning with global sustainability standards. These mills are not only reducing their environmental footprint but are also helping to meet the rising demand for sustainable paper products in the region. The establishment of such mills supports local economies by creating jobs, reducing reliance on imports, and positioning the region as a competitive player in the global pulp and paper market.

The leading position of wrapping products in the Middle East and Africa's pulp and paper market is primarily driven by the increasing consumer demand for sustainable and eco-friendly packaging solutions.

The Middle East and Africa (MEA) pulp and paper industry is experiencing significant growth, largely due to a robust demand for paper-based packaging. This surge is fueled by heightened consumer awareness regarding sustainability and hygiene, especially in the wake of the COVID-19 pandemic. Food packaging has emerged as a critical segment, with the market for paper packaging expanding rapidly as consumers seek environmentally friendly options. The shift towards sustainable practices is evident as governments across the region implement stricter regulations against single-use plastics, compelling industries to adopt greener alternatives.

Initiatives aimed at reducing reliance on non-renewable resources showcase a regional commitment to environmental sustainability.Moreover, the tissue and hygiene paper sector is also flourishing, driven by increased consumer sensitivity towards hygiene products. Companies are capitalizing on this trend by innovating biodegradable packaging solutions that cater to both household and industrial needs. The rising e-commerce sector further amplifies this demand; as online shopping continues to expand, so does the necessity for effective and sustainable packaging solutions. Investments in local paper manufacturing capabilities are enhancing production efficiency while promoting environmental sustainability.

The leading position of the food and beverage sector in the Middle East and Africa (MEA) pulp and paper-based products market is primarily driven by the increasing consumer demand for sustainable and hygienic packaging solutions.

The MEA region is experiencing a significant shift towards eco-friendly packaging, particularly in the food and beverage industry, which is a major consumer of pulp and paper products. This trend is largely influenced by heightened environmental awareness among consumers, who are increasingly rejecting plastic in favor of biodegradable alternatives. As a result, paper packaging has gained traction due to its recyclability, lightweight nature, and lower carbon footprint compared to traditional plastic options. The COVID-19 pandemic further accelerated this demand as consumers became more health-conscious, leading to an increased preference for hygienic and safe packaging solutions.

The experts project that the GCC countries, particularly Saudi Arabia and the UAE, will spearhead this growth, with the paper packaging market. Additionally, the burgeoning e-commerce sector in the region has catalyzed demand for effective packaging solutions that not only protect products but also enhance their presentation. Companies are investing heavily in innovative paper-based packaging technologies to meet these evolving consumer preferences while aligning with sustainability goals. Furthermore, government initiatives aimed at promoting sustainable practices are bolstering this transition. The combined effect of these factors positions the food and beverage industry as a key driver of growth in the MEA pulp and paper market, reflecting a broader global trend towards environmentally responsible consumption patterns.

South Africa's pulp and paper industry is a significant player in the global market, primarily due to its rich natural resources, strong production capabilities, and a focus on sustainability.

The country ranks as the 15th largest producer of pulp and the 24th largest in paper production worldwide. Major companies like Sappi and Mondi dominate the sector, with Sappi being a major producer of dissolving wood pulp, which is essential for various applications including textiles and pharmaceuticals. The industry benefits from South Africa's extensive plantation forestry, which provides a renewable source of raw materials. This has allowed for a diverse range of products, including newsprint, packaging papers, and specialty papers tailored to meet local and international demands. Despite its strengths, the industry faces challenges such as increasing imports of paper products that pressure local manufacturers to rationalize operations.

The weak currency has further complicated expansion efforts. Additionally, while demand for packaging and tissue products has risen due to improved living standards, traditional paper products like writing paper have seen a decline due to digitalization. This shift has prompted many producers to diversify their offerings towards higher-margin products that align with sustainable practices. Sustainability is a critical focus for the South African pulp and paper sector.

Companies are increasingly investing in renewable energy sources and efficient manufacturing processes to reduce their carbon footprint. The use of biomass for energy generation not only supports the industry's operations but also contributes significantly to reducing national greenhouse gas emissions. Furthermore, recycling initiatives are gaining traction, with efforts to enhance the collection and processing of used paper products.

Considered in this report

• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report

• Pulp & Paper market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Category

• Wrapping & Packaging
• Printing & Writing
• Sanitary
• News Print
• Others

By End User

• Food and Beverages
• Personal Care and Cosmetics
• Healthcare
• Consumer Goods
• Education and Stationary
• Others

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases.

After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Pulp & Paper industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.