The packaging market in the Middle East and North Africa (MENA) is valued at approximately US$41.1 billion in 2014 and is forecast to grow during the period 2014-19 at a compound annual growth rate (CAGR) of 5.0% to US$52.4 billion (2013 prices), according to a new market study by Smithers Pira.
This represents a higher growth rate than the global packaging market, which is forecast to grow at just over 4% during the same period. Packaging demand is being driven by higher economic activity and rising real incomes, urbanisation, a relatively young and growing population and the further development of retail infrastructure in several MENA countries.
The repot, The Future of Packaging in the Middle East and North Africa to 2019, examines MENA packaging markets for the period 2009-14 and presents forecasts for the five-year period covering 2014-19.
It says Middle Eastern countries account for a projected share of almost three-quarters of total packaging sales in the MENA region in 2014. Middle Eastern countries grew packaging sales during the five-year period to 2014 at a CAGR of 6.3% with North Africa growing at a CAGR of 6.9%.
Rigid plastics form the largest packaging product group accounting for a projected market value share of 28.2% for 2014.
Board packaging is the second most important category with 25.6% of consumption, followed by flexible plastics with a 12.9% share.
Plastic packaging is gradually replacing glass bottles, metal cans and paper and board packaging because of its lighter weight, cost saving potential and greater design flexibility.
