Packaging Industry in the United Arab Emirates

Economic slump spills over into packaging

The economic slowdown in the United Arab Emirates also hit the packaging industry, with many packaging categories including food, beauty and personal care, soft drinks and home care registering slower growth in retail unit volume terms in 2017 compared to the rest of the review period. Companies looked for alternative ways to drive sales such as offering larger pack sizes and multipacks, which are seen as more economical, as well as offering smaller packs which are more affordable.

Larger packs the key trend across food packaging

The key trend in food packaging was the aforementioned shift to larger pack sizes. For example, large pack sizes like Nutella’s 750g format in spreads are proving increasingly popular as they offer better value, while in baby food the rising popularity of growing-up milk formula is also supporting sales of larger packs.

Premium packaging seen in non-alcoholic drinks

Within non-alcoholic drinks manufacturers introduced more premium offerings in order to differentiate themselves and provide added value. For soft drinks.

Smaller and slimmer packaging proving popular in alcoholic drinks

Within some categories of alcoholic drinks there was a shift towards lighter and slimmer packaging towards the end of the review period, such as that of Tiger and Carlsberg beer. Slimmer cans have also gained consumer attention, with this format being more convenient to carry as well as providing a more elegant image for RTDs, such as the leading Smirnoff Ice brand.

Eco-friendly packaging becoming a growing priority

The number of international brands offering organic, chemical-free and natural products in the United Arab Emirates is increasing, which is resulting in a rise in eco-friendly packaging. Such products are available through hypermarkets as well as supermarkets and are competitively priced.

Product type influences choice of packaging

In some categories of home care, the type of packaging used varies according to the usage of the product. For example, most manufacturers of fabric softeners use PET packaging as it gives the feeling of softness compared to HDPE.

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