The Middle East paper industry has evolved over the years and is now one of the world’s fastest growing markets. Though the COVID-19 pandemic brought in disruptions and bottlenecks in production with unprecedented challenges for paper manufacturers across the world, it also helped mushroom new opportunities in paper packaging and paper disposables, further fuelled by an e-commerce boom.
Post-COVID, the GCC paper industry saw new expansions and investments, surging in excess of $1.6 billion in almost the last two years. The UAE and Saudi Arabia have a major share of these investments in greenfield projects as well as in expansion of existing production facilities to cater to the growing consumer demand for paper products, particularly in hygiene and packaging.
The growth of investments in the Middle East paper industry also comes in the backdrop of the Ukraine war which is a major cause of concern for Europe with serious implications on the energy-intensive paper industry.
The demand for paper and pulp products in markets in the Middle East and Africa has been driven by an increased demand for green packaging solutions. According to a study by India-based global research company Mordor Intelligence, the market is poised to touch $28.72 billion in the next five years, growing at a CAGR of 3.28%.
Increasing environmental awareness is also driving the growth of paper products. Governments in the Middle East region, with the UAE in particular, have clamped restrictions on the use of environment polluting products like single-use plastics.
The global packaging industry has benefitted immensely and grown with the e-commerce boom. According to data from German statistics and survey company Statista, e-commerce now accounts for nearly 7% of the retail spend in the UAE.
Naveen Seth, Assistant Secretary General at PHD Chamber of Commerce and Industry, India, sums up, “Consumer attitudes and preferences have changed in the recent times. The growing number of health and hygiene conscious consumers has fuelled the market for paper packaging and disposables like tissues with per capita consumption of these products on the rise.”
