Rising use of High Value Container Variants Boosts MENA Industrial Packaging Market

Frequent innovations in the products of the industrial packaging industry in the Middle East and Africa sector has resulted in the development of production of numerous packaging variants, and is also resulting increased value of the product for end users. This higher rate of adoption among industrial end users is boosting the overall demand.

Mild steel drums are some of the most commonly used packaging solutions in the Middle East and North Africa regions. Constant innovations in these products in terms of design are pushing a strong change in terms of bulk packaging, where consumers are boosting the demand for bulk transport containers.

Global trade in packaging products has witnessed a rapid rise in recent years, which has created a need for industrial packaging for sectors such as food and bio chemical manufacturing industries. In addition, the projected rise in international trade for near future is also expected to have a significant impact on the growth of the MENA industrial packaging market. Other influencers, that may affect the market can include:

  1. While the industrial packaging market has found strong traction in North America and Europe, It is now rapidly gaining popularity in the MENA region. This trend can be attributed to the increased preference for affordable, light weight, and easy to use solutions in industrial packaging in the region.
  2. Of the different materials used to produce packaging products, plastic is projected to dominate the scene in the MENA region. This can be attributed to the compatibility of plastic containers in the regions vast oil and gas, and chemical production companies. The market for industrial packaging in the GCC countries are expected to rise at more than a 150 per cent in the near future, owing to the availability of low cost solutions that can be found on a large scale.
  3. Government bodies across the globe are pushing for increasing stringency in environment protection, which has reduced the use of plastic in the MENA industrial packaging market. Consequently, packaging manufacturers are focusing their efforts on alternatives, thereby restricting market growth for the foreseeable future.

Demand for industrial packaging in the Middle East and Africa is likely to remain robust owing to the improving situation of international trade. In addition, global trade of industrial products has grown three-fold over the past decade. Bio-chemical products and food-grade ingredients are amongst few of the most traded items around the world. In the MENA region, the focus has recently shifted towards non-oil based industrial activities as the long-term dependency on crude oil business is gradually abating. Moreover, it is important to develop new business verticals in order to stay unaffected from the ongoing dwindles in the region’s oil and gas industry. As compared to other regions, non-oil goods and services have a significantly low contribution to the economy of the MENA region. Yet exports, especially non-oil exports are expected to be crucial in the further development of the robust and all-inclusive growth model to secure the future of the region.  End-use industry such as electronics, automotive, plastics & rubber, and agriculture in MENA are expected to witness a healthy growth over the medium term. This, in turn, is expected to support the growth of industrial packaging market in the region.

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Future Market Insights (FMI) in its latest report reveals that the industrial packaging market in the MENA region stood at US$ 3,372.5 Mn by 2016 and is estimated to reach a valuation of US$ 5,053.0 Mn by 2024-end. Revenue from the sale of industrial packaging products in the region is expected to increase at a CAGR of 5.2% during the forecast period (2016–2024).

GCC and North Africa are identified as the key markets that account for more than 60% of MENA’s industrial packaging market. Further, the market in GCC is projected to expand at a relatively higher CAGR over the forecast period and present lucrative opportunities for industrial packaging product manufacturers in the region.

Plastic Remains the Top Material for Manufacturing Industrial Packaging Products

By 2016, plastic based industrial packaging products accounted for more than 50% of the revenue share of the market in the region. Plastic packaging is used across several industrial verticals owing to its durability and cost efficiency. However, demand for paper & paperboard-based packaging material is expected to gain a healthy traction over the forecast period.

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Based on product type, intermediate bulk containers (IBCs) packaging accounted for more than 30% revenue share of the market by 2016. IBCs are reusable industrial containers classified by 2 types: Flexible IBCs & Rigid IBCs. IBCs are commonly used for the transportation and storage of liquid and granulated substances such as food ingredients, chemicals, solvents, and pharmaceuticals.

By end-use, nearly US$ 1104.9 Mn worth of industrial packaging is expected to be consumed by the chemicals & pharmaceuticals sector over the forecast period. In addition, chemicals and pharmaceuticals sector is the most significant end-user for industrial packaging in the MENA region.

Vendor Insights

Industrial packaging solution manufacturers are actively focusing on further enhancing their product offerings. Many of the companies are changing their raw materials in accordance with the shift of customers towards convenience packaging. International Paper, Time Technoplast Ltd., Mauser Group B.V, Grief, Inc., Balmer Lawrie & Co. Ltd., Clouds Drums LLC., and Gulf Plastic Industries Company are amongst some of the leading companies operating in MENA’s industrial packaging market.

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