The UAE packaging industry is poised to keep growing to hit $2.3bn in 2016, says UK-based BRICdata.Growth is driven by both rising domestic consumption and a diversified exports market, according to the research company.
Across the MENA region, the UAE’s packaging sector is the fourth fastest-growing national packaging sector, said the firm.
GDP per capita in the UAE topped $50,000 in 2009, and is projected to hit $80,084 in 2016, propelling demand for processed food and consumer durable goods, said BRICdata. Abu Dhabi, with the world’s highest per-capita GDP, contributes substantially to spending.
While paper and board is the UAE’s largest packaging category, food and beverages is the key end-user market, accounting for 55% of packaging products in 2011. Annual consumer expenditure on food is expected to grow at an average of 7.12% each year to hit $33.7bn in 2016.
But the UAE packaging industry relies heavily on exports and its long-term sustainability hinges on international demand, finds BRICdata.
The UAE has emerged as a prime market for re-exporting products from its neighbours to developed markets such as the US and Europe, according to the company’s report. Trade agreements with developed nations and geographical proximity to Europe help drive this activity.
The UAE packaging industry totalled $1.84bn in 2011 but is on track to hit $2.3bn in 2016, according to the report.