The appearance of many e-commerce platforms in the Middle East, such as noon.com, is among various factors fueling the growth of the packaging industry in the region, with the value of packaging used in e-commerce rising at 25% per year.
Packaging sales across the Middle East and North Africa will be worth AED268 billion this year, as per the most recent research published by Smithers Pira.
The report entitled The Future of Global Packaging to 2020 also pointed to another important growth driver being MENA’s continued exposure to international brands and brand packaging.
Total packaging consumption overall (by value) across the region is growing by an average annual rate of 3.5%; extending the region’s market share in a worldwide industry that is expanding at almost 3% year-on-year.
Local and international companies within the packaging industry are increasingly aiming the MENA region as sales volume and values continue to rise.
The region further presents many opportunities for both international and locally-based brands, converters and materials suppliers to innovate and grow revenues.
Swiss company BOBST, one of the worlds leading supplier of equipment and services to packaging and label manufacturers, is one of a growing number of overseas companies keen to take advantage of the burgeoning opportunities the region presents for business growth.
Moez Jebali, regional sales manager for BOBST Africa and Middle East, said that "among the important trends they are tracking in the region are growing packaging requirements in the food and pharmaceuticals sectors, as well as personal care.
Digitalization and cost reductions in both package printing and commercial print are also driving strategic changes within the industry.
Pauline Brooks, marketing development manager, Konica Minolta Business Solutions Middle East, said, “We have seen over the past four years that commercial printers are persuing to operate a more sleek and efficient business, allowing them to respond rapidly to customers’ demands for high quality, cost effective and creative solutions whilst streamlining their workflow.”
Brooks further added, "in both labels and in packaging “brands increasingly want to add value via innovative decorative and tactile elements within the printed piece. With respect to this, technology, such as the digital embellishment systems of our strategic partner MGI is a ready-made opportunity for label converters to offer highly creative services and win new business.”