Top 50

Top 50 food packagers coming in July & the Top 25 beverage packagers coming in August.
Don’t miss these exclusive issues.

Materials / Flexible Packaging / Latest Headlines

Mass food production fuels growth in Middle East & African flexible packaging market

January 3, 2014
/ Print / Reprints /
ShareMore
/ Text Size+
Trans

A new report from PCI Films Consulting (pcifilms.com) forecasts that flexible packaging demand in the Middle East and Africa will grow by around 5% p.a. over the next five years as confidence in the region’s growing economy encourages inward investment and greater emphasis on mass food processing.

In 2013 the market for flexible packaging in the Middle East and Africa is valued by PCI at approaching US$4 billion. With consumption per capita currently only around US$3 compared to Europe’s US$30, there is clearly huge potential for future growth in the region’s flexible packaging market.

As countries in the region grow their economies and look to improve transport and distribution infrastructure and encourage inward investment, more and more multinational brand owners are recognizing the potential for local packaged food production to supply the region’s expanding needs.

Five countries; South Africa, Nigeria, Iran, Egypt and Saudi Arabia currently account for over half of total consumption of converted flexible packaging in the region. The most dynamic market is Nigeria, where flexible packaging demand has grown by around 12% p.a. over the past five years. Other smaller markets such as Tanzania, UAE have also seen above average growth. In contrast to the generally positive picture, flexible packaging sales in Iran and Syria have experienced steep declines due to political, social and economic instability.

So what is driving flexible packaging growth in the region? Some factors identified by the report include:

  • A rapidly growing young population and increased urbanization.
  • Increased investment in food production and processing across both regions.
  • Significant investments in new flexible packaging converting capacity.
  • Increased availability of locally produced and competitively priced base substrates.
  • Growth in modern retailing and increased penetration of pre-packed foods.

The region continues to be a net importer of flexible packaging especially into Africa, much being sourced from Europe and increasingly from India and China with the leading European and American owned multinational converters having virtually no local production capability in the region. There is also substantial intra-regional trade, with converters in Saudi Arabia and UAE making use of the films produced as part of downstream petrochemical diversification within those countries. Also Indian entrepreneurs have successfully established thriving converting operations in Nigeria and the UAE.

The region’s flexible packaging industry remains very fragmented. Of over 350 converters identified by PCI, the top 20 players account for only around 40% of production.

PCI Films’ new report The Middle East & African Flexible Packaging Market to 2018 analyses key drivers, important end-use sectors and the leading converters with an in-depth analyses of sixteen of the most significant countries in terms of flexible packaging production, trade and consumption, providing: economic overview, flexible packaging overview, drivers and future prospects, converter profiles and end-use markets. The new report, which forecasts national and regional demand through to 2018, provides vital background information for converters and investors considering moves within this dynamic and diverse region.

 

 

 

Did you enjoy this article? Click here to subscribe to Food and Beverage Packaging

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

2014 Beverage Breakthroughs of the Year

Beverage packaging innovations huff, puff and blow traditional packaging down.

Food and Beverage Packaging

FBP July 2014 cover

2014 July

Check out the July 2014 issue of Food & Beverage Packaging, featuring our Top 50 Food Packagers list!

Table Of Contents Subscribe

Alcohol Packaging

What type of packaging is the next big thing for alcoholic beverages?
View Results Poll Archive

The Food and Beverage Packaging Store

M:\General Shared\__AEC Store Katie Z\AEC Store\Images\FBP\modified-atmosphere.gif
Modified Atmosphere and Active Packaging Technologies

Many factors are relevant in making the proper choice of food packaging material, including those related to shelf life and biodegradability.

More Products

FBP Buyer's Guide

2013 FBP Buyers Guide

 

 

Food and Beverage Packaging's Buyer's Guide provides a list of suppliers of food and beverage packaging solutions. 

Clear Seas Research

CS-OflRGBhomepage.jpgWith access to over one million professionals and more than 60 industry-specific publications, Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

STAY CONNECTED

 Facebook iconTwitter iconYoutube icon LinkedIn icong+icon