MEA paper industry set to exceed $20 Billion, driven by growing demand for sustainable packaging

H.E. Maria Al Qassim, Assistant Undersecretary of the Ministry of Economy, UAE, officially inaugurated Propaper Dubai 2024 on September 17, 2024.

 

The Middle East and Africa (MEA) paper and pulp industry is expected to surpass USD 20 billion within the next six to seven years, driven by growing demand for packaging solutions. GCC countries, particularly Saudi Arabia and the UAE, are leading this rise, with paper packaging playing a key role in the region’s growth, according to industry experts at Propaper Dubai 2024.

 

Held from September 17-19, Propaper Dubai 2024, organized by Verifair, brings together global and regional stakeholders to explore growth opportunities in the paper sector. Industry reports suggest that the paper packaging market in the GCC reached USD 9.1 billion in 2023 and is projected to grow to USD 12.8 billion by 2032, at a compound annual growth rate (CAGR) of 3.8%.

 

The rise in demand is largely attributed to the increasing need for eco-friendly and sustainable packaging solutions, particularly in sectors like food, pharmaceuticals, and cosmetics. “For the paper industry, sustainability across the value chain—from procurement to logistics—is no longer optional but imperative,” said Salahuddin Sharafi, Chairman of MAHY Khoory Group. He emphasized the role of energy savings, recyclability, and reduced carbon footprints in driving the shift toward sustainable packaging.

 

Post-pandemic trends have further accelerated demand for paper-based packaging, especially in the food sector. The MEA food market, valued at USD 277.9 billion in 2023, is expected to grow steadily, boosting the prospects for paper packaging solutions. Tissue and hygiene paper sectors are also witnessing growth, with the UAE market projected to expand by 1.94% annually between 2024 and 2029, according to Statista.

 

Despite challenges such as raw material shortages and supply chain disruptions, demand remains robust, particularly in Africa, where urbanization and a young demographic are fueling market expansion. Verifair’s Managing Director, Jeen Joshua, highlighted the resilience of the industry, noting that “new markets, particularly in Africa, continue to open up.”

 

Circular economy initiatives are also gaining traction, with the MEA recycled paper market expected to reach USD 635.9 million by 2028, growing at a CAGR of 2.21%, according to Business Market Insights.