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The rising penetration of corrugated packaging in UAE


The UAE corrugated board packaging market was worth USD 1.24 billion in 2019, and is projected to grow at a CAGR of 4.26 percent to USD 1. 577 billion by 2025. Corrugated board is a structure made up of one or more corrugated elements (known as medium or fluting) connected to one or more flat elements (known as a liner) by applying adhesive to the flutes' tops.

Corrugated packaging is becoming more common in the country as the e-commerce sector grows. In 2019, e-commerce transactions in the United Arab Emirates totaled USD 16 billion, according to Visa. In addition, the United Arab Emirates has the highest annual spending per online shopper in the MENA region, at USD 1,648.

The increase in environmental awareness among populations, demand for sustainable packaging solutions, demand for convenient packaging (offset by new restrictions on single-use in some countries), the e-commerce market, and rise in demand for electronic goods and home and personal care items, along with economic development and increasing per capita income are all contributing to the accelerated growth of the corrugated packaging market in the United Arab Emirates.

Sustainable packaging and the cost benefits associated with it are causing growing concern among government and regulatory bodies in the country. This is also propelling the country's corrugated packaging industry forward. For example, the Abu Dhabi government announced a new strategy to reduce single-use plastics in March 2020. Because of its sustainability and recyclability, the ban on single-use plastic is expected to open up opportunities for corrugated board packaging in a number of end-user industries.

With the outbreak of COVID-19, there has been a significant increase in demand for corrugated board packaging in the region, owing to increased demand for essential products such as food and other consumer products, medical and pharmaceutical products, and tissues and hygiene products.

According to the Association for Packaging and Processing Technologies, the global e-commerce packaging market could hit USD 55 billion by 2022, with a CAGR of 14.3%. There are many ways to meet the demands of tomorrow's creative packaging designs, particularly for corrugated packaging, which can account for more than 80% of e-commerce packaging.

Corrugated packaging stands to gain significantly as e-commerce becomes a more critical part of the retail landscape. Because of the design of e-commerce packaging, corrugated board is a favrouble option.

Because of the COVID-19 pandemic, the e-commerce industry is seeing a dramatic shift in customer behaviour. COVID-19, for example, is improving the UAE's e-commerce industry, as customers are shifting their buying habits and preferring to shop online rather than in physical stores.

Consumers in the UAE have a wide range of personal care and household care items to choose from. As a result, in order to increase their market share and visibility, businesses in the market are improving their properties with a variety of materials, some of which are engineered for sustainability.

Various players provide corrugated packaging items for a wide range of end-users in the UAE Corrugated Board Packaging industry. Since the United Arab Emirates is rapidly emerging as a startup hotspot in the Middle East, the entry barrier to this market is tiny. As part of the country's attempt to reduce its reliance on the oil and gas industry, the government initiatives have received a lot of support.


Source : www.uaenow.ae
Posted on :4/5/2021