Market Info
GCC... the New Manufacturing Destination for
PAPER & TISSUE
The forecast for MEA paper and pulp market is in the range of 3-4 per cent CAGR for the next five years. In a post-pandemic scenario, demand for paper products across different categories has been on an upswing across the world, and the Middle East region is no exception. The paper and pulp industry growth is being fueled by rising demand for paper consumables including sanitary paper products, paper packaging products, paper boards etc…
Upsurge in demand for cosmetic packaging with growing uptake of cosmetic products. In the UAE alone per capita consumption on cosmetics is upwards of USD 294 from USD 247 earlier.
Rapid urbanization in African countries is fostering a younger generation of consumers buying processed and packaged foods, which is driving demand for pulp and paper-based packaging as well as products such as tissue papers.
Saudi Arabian paper and paper board packaging market valued at USD 1926.3 million in 2020 is anticipated to reach USD 2508.4 million by 2026, growing at a CAGR of 4.2 per cent.
Paper products are increasingly preferred with the rising focus on sustainability and environment, fueling billions of dollars of growth for paper and paper-based products.
Post-pandemic exponential growth in online shopping for food products is directly translating into growth for paper packaging products. The size of the market is huge, and a market like Saudi Arabia alone has a food and beverages market worth USD 45 billion.
Development of new logistics hubs in Africa will boost commerce and market expansion, while surge in e-commerce across verticals will in turn help grow the sustainable packaging sector benefiting paper industry.
PAPER INDUSTRY IN MEA AT A GLANCE
Sustainability – commonly used and read by each one of us in every report or market analysis these days. World has been aggressively spreading the word of developing a sustainable ecosystem. SUSTAINABILITY WILL DRIVE THE BUSINESSES OF THE FUTURE
SUSTAINABILITY IN PAPER INDUSTRY
Paper Industry has been taking the lead towards this and is –SUSTAINABLE BY DESIGN. Coming from renewable resources, produced sustainably, and recycled after its use, paper can be seen as one of the first products to optimize the circular economy. The paper industry is a highly certified industry, with a fully renewable raw material and a circular product, using renewable raw material to produce a recyclable product. The industry itself is also decoupling: the direct link between production and impact has been broken, meaning that more production no longer means more impact. Apparently, it is clear to pretty much everybody who is involved in the world of paper that it is a raw material of enormous value both economically and from an ecological point of view.
PAPER INDUSTRY MARKET IN MEA REGION
The paper industry comprises of establishments like Paper Mill, Paper Board, Pulp Mill, Pulp and Paper, Pulpwood to name a few. This industry also includes establishments that use the manufactured paper and paperboard to further convert them into products such as corrugated and solid fibre boxes, folding paperboard boxes, paper bags, cups and plates. Cellulose acetate, rayon, and cellulose esters are examples of products made from cellulose that are used in packaging films and dynamite.
The Middle East and Africa region comprises many growing economies, which are prospective markets for paper vendors. The demand for paper market is growing on account of increasing urbanization and surge in literacy rates in MEA region, which creates huge demand for paper products such as writing and printing paper, containerboard, newsprint paper, tissue etc. The container board segment is dominating the market due to the increasing demand from various industries such as food & beverage, pharmaceutical, and cosmetics.
The demand for paper packaging solutions have also been supported by the growth of e-commerce in the UAE, and according to Visa, the country’s online spend is the biggest in the MENA region with annual spend by averaging over US$1,648.
KEY MARKET SEGMENT
The Middle-East and Africa Paper Market is segmented by Type (Printing and Writing, Newsprint, Tissue, Carton board, Containerboard, and Other Types) and Country (United Arab Emirates, Saudi Arabia, Iran, Israel, Jordan, Egypt, Iraq, Turkey, Lebanon, and Rest of the Middle-East and Africa). The Middle-East and Africa Paperboard Market is segmented by End-user Industry (Processed Foods, Fresh Food and Produces, Beverages, Paper Products, Electrical Products, and Other End-user Industries) and Country (United Arab Emirates, Saudi Arabia, Turkey, and Rest of Middle-East and Africa).
MARKET OVERVIEW AND DYNAMICS
The MEA region’s paper products market has reached a value of US$ 10.8 Billion in 2021. Looking forward, IMARC Group expects the market to reach US$ 13.4 Billion by 2027, exhibiting a CAGR of 3.7% during 2022-2027. Pulp and Paper market is expected to see a huge demand by 2030. One of the most significant properties of paper is its potential to be recycled numerous times that saves the cost involved in the production of new paper. The recycling of paper is known to conserve natural resources, thus reducing greenhouse emissions, saving energy, and keeping the landfill space free for other types of trash.
The paper and its relevant products industry is experiencing growth, with the packaging industry gaining momentum in leveraging its eco-friendly material, along with tissue papers and pulp for hygiene products.
The vendors in the region leverage each other by the means of imports and exports and are constantly looking for new applications and use for wood and its components. For instance, according to the United Nation Comtrade database, the United Arab Emirates accounted USD 12.26 million in 2018, for the import of paper and paperboard from Kuwait.