MEA paper & pulp industry poised to cross over USD 20 billion on the back of big packaging push

MEA paper & pulp industry poised to cross over USD 20 billion on the back of big packaging push

• Leading paper industry show, Propaper Dubai 2024 from September 17-19 offers a growth and market-entry platform for global and regional paper industry stakeholders

• E-commerce boom and rising consumer demand for healthy packaging to push paper packaging to over USD 12 billion in GCC by 2032 at a CAGR of 3.8 per cent.

Dubai, September 17, 2024:    The Middle East and Africa (MEA) paper and pulp industry is on a growth surge, poised to cross over USD 20 billion in the next six to seven years, with GCC countries led by Saudi Arabia and the UAE at the forefront of a demand upswing for paper packaging products fuelling the rise, industry experts said today quoting independent market reports.

In a statement at the opening of the leading paper industry exhibition in Dubai, Propaper Dubai 2024 organised by Verifair, industry experts said that the growth was catalysed by the increasing consumer appetite for healthy, hygienic environment-friendly and sustainable packaging products.

“For paper industry, being sustainable across the value chain of procurement, production as well as logistics and supply chain is no more an option, but an imperative. While the efficiency parameters of sustainability are many, including energy saving, potential to recycle, and lower carbon footprints, what drives the transformation of being nature friendly is being entirely inspired by the position taken by the community and aware customers,” said Salahuddin Sharafi, Chairman of MAHY Khoory Group (which owns Al Dhafra Paper Manufacturing Company and Union Paper Mills)

Paper packaging cornerstone of growth

According to the thinktank, imarc Group, paper packaging has been a cornerstone for growth in the recent times with the GCC paper packaging market size touching USD9.1 billion in 2023, and is poised to grow to USD12.8 billion by 2032 at a CAGR of 3.8 per cent. 

Food packaging is a major segment in the paper packaging verticals, followed by pharma, beauty and cosmetics. Post-Covid, demand for paper packaging solutions have been on a consistent upward trajectory, particularly on the backdrop of rising food packaging needs. According to Global Data, The MEA food market size was $277.9 billion in 2023 and will grow at a CAGR of more than 3% during 2023-2028, increasing the prospects of paper packaging solutions.

Increasing consumer sensitivity to hygiene is also fuelling growth in the tissue sector in the MEA region. In the UAE alone, market for tissue & hygiene paper is expected to grow by 1.94 per cent between 2024-2029 from the current USD525 million, as per Statista. Despite income disparities and conflicts in the region, growth in the tissue and hygiene vertical is bound to grow with MEA being one of the fastest growing regions. The growth will also drive on the rising population with the World Economic Forum (WEF) estimating that MEA will be home to around 3.4 billion people by 2050.

Innovate for sustainability

 The paper industry has been on an eco-friendly innovation journey with consumer appetite shifting to recyclable paper products. The transformation is across design, production and personalised solutions, to mention a few, said Jeen Joshua, Managing Director of Verifair.

“Despite the challenges of raw materials and supply chain shocks from regional uncertainties, the demand for paper products and solutions have stayed strong with growth in existing markets, as well as opening up of new markets, particularly in the African Continent, which is urbanising fast and have a majority of young demographic much like in the GCC,” he said.

Sustainability is becoming a core focus, with investments in eco-friendly practices and products driven by consumer preferences and regulations. Technological innovations are leading to new uses for wood components, including in textiles, altering traditional industry operations, he added.

Circular economy initiatives are also keeping pace with the overall growth with the MEA recycled paper market poised to touch USD635.9 million by 2028, growing at CAGR of 2.21 per cent, according to Business Market Insights.

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