Evolution in product design have shown continues improvement in industrial packaging products. Industrial users have also started using packaging solutions from designed drums to improved MS barrels. According to the latest study by Future Market Insights (FMI), the sales revenue of Industrial packaging in the Middle East and Africa (MENA) region is set to witness an increase in CAGR to 5.2%.
Shift in economic focus to non-oil economy to benefit Industrial packaging market in MENA region
The report also reveals that the MENA region is expected to show a growth in the industrial packaging market. The primary reason for the growth is a gradual shift in economic focus from the oil economy to non-oil economy. Though non-oil goods and other services are not popular in this region, yet exports and non-oil exports will play a crucial role in the development and growth of industrial packaging market in the region, Moreover, Industries such as automotive, rubber, plastic, and electronics will show significant growth in the region by 2024.
Plastic remains the most Preferred Material in Industrial Packaging Market in MENA Region
Plastic is one of the most preferred material in the industrial packaging market, it accounts for more than 50% of revenue share in the MENA region. Cost efficiency and durability are contributing towards increasing use of plastic in industrial packaging. The pharmaceuticals and chemicals sector is the end-user of industrial packaging market in MENA region and $1104.9 million worth of industrial packaging market will be dominated by this sector.
The metal packaging sector will lose 190 basis points by the end of 2024. Meanwhile, chemical companies in MENA region are also willing to invest in the production of industrial packaging products for storage of oil and petrochemical products. The demand for cost-effective, lightweight industrial packaging product is also on a rise, thus paving way for plastic as a solution.
The industrial trade which is expected to remain positive in MENA region for next five years will create a significant demand for industrial packaging product in the region.
However, the rules and regulations by the government across the countries on the use of plastic will adversely affect the industrial packaging market. Moreover, governments are also concerned about the rising demand for synthetic plastic which is non-biodegradable. With government imposing rules, plastic producers are also modifying the manufacturing process.
The manufacturers are also adopting the process of recycling and reusing the material. As recycling of steel is also considered to be less harmful to the environment.