The increasing popularity of the e-commerce sector in the country paves the way for corrugated packaging. According to Visa, e-commerce transactions in the United Arab Emirates amounted to USD 16 billion in 2019. The United Arab Emirates also represents the highest annual expenditure per online shopper in the MENA region at USD 1.648.
The rapid growth of the corrugated packaging market in the United Arab Emirates is due to rising public knowledge of the environment, the need for sustainable packaging solutions, with an increasing demand for convenient packaging (offset by new single-use restrictions in some countries), the growing e-commerce market.
Sustainable packaging and the cost benefits associated with it are the growing concerns of government and regulatory bodies in the world. This is also driving the growth of the corrugated packaging market in the region. For instance, a new strategy to reduce single-use plastics was introduced by the Abu Dhabi government in March 2020. Because of its recycling and recyclability attributes, the ban on single-use plastic is anticipated to create an incentive for corrugated board packaging in many end-user industries.
Due to the rising demand for packaging of essential products such as food and other consumer products, medical and pharmaceutical products, and tissue and hygiene products, the demand for corrugated board packaging in the country is experiencing significant growth with the outbreak of COVID-19.
By 2022, the global packaging market for e-commerce may cross USD 55 billion, at a CAGR of 14.3 percent, according to PMMI, the Association for Packaging and Processing Technologies. There are many opportunities to meet the requirements of the creative packaging designs of tomorrow, particularly for corrugated packaging, which can account for over 80% of e-commerce packaging.
Corrugated packaging stands to profit significantly as e-commerce becomes an increasingly significant aspect of retail. The design of e-commerce packaging encourages the use of the corrugated board as the major medium.
Due to the COVID-19 pandemic, the e-commerce industry is undergoing a major change in customer behaviour. COVID-19, for example, is improving the e-commerce sector of the UAE, as customers shift their purchasing habits by preferring to buy online instead of shopping in physical stores.
The UAE is seen by many global and regional players as a lucrative opportunity to launch its products and grow its market presence in the world.
In the personal care and household care sector, the country is also witnessing huge investments from around the world. The need for creative packaging solutions could be fuelled by this, thereby driving consumer demand.