Report Overview

A spurring demand for flexible packaging materials from the thriving e-commerce sector and growing food and beverages industry is expected to boost the growth of GCC flexible packaging market during the forecast period between 2023 and 2029.

GCC Flexible Packaging Market - Industry Trends & Forecast Report, 2029

GCC flexible packaging market size was estimated to be worth USD 4.2 billion in 2022. During the forecast period between 2023 and 2029, the GCC flexible packaging market size is projected to grow at a CAGR of 4.2%, reaching a value of USD 5.6 billion by 2029. Major growth factors for the GCC flexible packaging market include the rising demand for packaged FMCG products owing to the flourishing food and beverage industry, the availability and launch of a wide range of products, and the flourishing e-commerce industry.

GCC Flexible Packaging Market – Overview

Flexible packaging is a box or container made of flexible materials that can be effortlessly reshaped after filling or closing. It maintains the proper temperature, removes oxygen, and absorbs moisture to keep the product fresh throughout transit or its inactive life. Materials that break down easily, such as polyethylene, polyvinyl chloride, polypropylene, and polyester, are used to create this packaging. Flexible packaging has several uses and is appropriate for various businesses in the food, home, and personal use sectors.

GCC Flexible Packaging Market

Growth Drivers

Expanding Application in the E-commerce Industry

The increasing disposable income of the consumers and rising population of tech-savvy youth in GCC countries is directly influencing the growth of the e-commerce industry. The flourishing e-commerce industry in the GCC countries, particularly in Saudi Arabia and UAE, is emerging as the major driving factor for the flexible packaging market growth. Flexible packaging is portable and lightweight compared to rigid packaging, owing to the material used in its production, which makes it convenient for products during their shipping and transportation.

Restraints

Difficult to Recycle and Degrading to Environment

One disadvantage of flexible packaging is that recycling it might be challenging. It includes several layers, and it is difficult to separate them for recycling. Recycling plastic, paper, and metal packaging from products is highly challenging. The lack of sufficient recycling infrastructure further qualifies flexible packaging as degrading to the environment and therefore, they often end up in landfills. The stringent government regulations in GCC countries towards the use of single-use plastic packaging may limit the flexible packaging market in the region.

Impact of COVID-19 on the GCC Flexible Packaging Market

The GCC flexible packaging market grew dramatically as a result of the COVID-19 pandemic. The region's demand for packaged food and beverage goods surged as a result of the lockdown and the emergence of a remote working culture. Food manufacturers concentrate on using adaptable, affordable packaging materials that may provide their products with a longer shelf life during mass hoarding due to the spike in demand for packaged food and beverage products. As a result, the need for flexible packaging has increased in the GCC, driving the total market expansion.

GCC Flexible Packaging Market

Segmental Coverage

GCC Flexible Packaging Market – By Material

Based on material, the GCC flexible packaging market is segregated into plastic, paper, metal, and bioplastic. Plastic material accounts for the highest market share. In addition to being cost-effective, plastic packaging, such as made of polyethylene, provides products with better durability and sealability, extending their shelf life. However, paper packaging is anticipated to register the highest growth rate during the forecast period. Growing environmental awareness among consumers is encouraging packagers to switch to eco-friendly packaging, driving its market growth.

GCC Flexible Packaging Market – By Packaging Type

Based on packaging type, the GCC flexible packaging market is segmented into pouches, rollstock, bags, films & wraps, and others. The pouches segment holds the largest share in the GCC flexible packaging market owing to its prominent application in the food and beverages industry. Their small size proves to be convenient in transportation and storage as well as economical during shipping of the products. However, bags also cover a substantial market share. They are gaining significant traction in the e-commerce industry for the packaging of clothes and other consumer goods.

GCC Flexible Packaging Market – By Printing Technology

Based on printing technology, the GCC flexible packaging market is segmented into rotogravure, flexography, digital printing, and others. The flexography segment accounts for the highest market share. Flexography is substantially more cost-effective than other printing methods, as it uses cheap materials. Due to its fast printing rates and the fact that one meter of printing may cover hundreds of meters, it is preferred by package suppliers and end-user industries.

GCC Flexible Packaging Market – By End-User Industry

Based on the end-user industry, the GCC flexible packaging market is segmented into food, beverages, pharmaceutical & healthcare, personal care & cosmetics, and others. The food and beverages industry dominates the GCC flexible packaging market. Flexible packaging is very capable of keeping the products fresh while also protecting them from moisture, dust, and other environmental contamination. With the availability of different types of packaging such as handles and closures, built-in spouts, and other features, the handling of solid and liquid food products are made easy, due to which the food industry manufacturers opt for these packaging alternatives.

Competitive Landscape

Major players operating in the GCC flexible packaging market include Bemis Company, Inc., Mondi plc, Huhtamaki Oyj, Sealed Air Corporation, Constantia Flexibles International GmbH, Sonoco Products Company, and Amcor Ltd.

To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In February 2023 – SABIC, a chemical manufacturing company based in Saudi Arabia, announced the development of the world's first flexible food packaging based on advanced recycled ocean-bound plastic, along with its collaboration with Scientex, a Malaysia-based packaging company.  

Scope of the Report

By Material

• Plastic

• Paper

• Metal

• Bioplastic

By Packaging Type

• Pouches

• Rollstock

• Bags

• Films & Wraps

• Others

By Printing Technology

• Rotogravure

• Flexography

• Digital Printing

• Others

By End-User Industry

• Food

• Beverages

• Pharmaceutical & Healthcare

• Personal Care & Cosmetics

• Others