A recently published report on the packaging industry in the UAE compiled and published by BRICK DATA indicates that the industry will see commendable growth in the coming years. According to the report, the country’s GDP will rise to US$ 80,084 in 2016, which indicates that there will be a huge increase in domestic consumption and activities in export market.
The report titled, ‘Packaging Industry Outlook in the UAE: Market Size, Key Trends, Drivers and Challenges to 2016’ states, “The country’s GDP per capita exceeded US$50,000 in 2009, and is projected to reach US$80,084 in 2016. This implies there will be more spending on processed food and consumer durable goods during the forecast period, which will propel the growth of the packaging industry. Abu Dhabi, which registered one of the highest GDP per capita in the world, contributes substantially to the country’s spending power, which is also being supported by the country’s improved consumer confidence and favourable economic environment.”
It further states that the packaging industry will have a compounded annual growth rate of 4.27% by 2016. The annual consumer expenditure on food in the UAE was US$23.3 billion in 2011 and grew at a CAGR of 14.52% during the review period. The annual consumer expenditure on food is expected to grow at a CAGR of 7.12% during the forecast period, to reach a value of US$33.7 billion in 2016. The report states that UAE is a large consumer of ready-made foods, which are supplied to consumers in packaging. This is expected to stimulate the demand for packaging products in the country.
According to the report the plastic packaging business will decline in the country due to the government’s tough environmental regulations. It states, “The government has already banned the use of plastic bags in some areas of the country and a more complete and comprehensive ban will be enforced by the end of 2013. The ban is expected to cause a decline in the consumption of flexible plastics.”