Packaging Industry in the United Arab Emirates

Packaging producers adapt to adverse economic climate with new sizes and packaging materials

The economic slowdown in the United Arab Emirates led to a slowdown in packaging categories including food, beauty and personal care, soft drinks and home care. This forced companies to seek 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.

Growing popularity of rigid and flexible plastic packaging in sauces, dressings and condiments

The United Arab Emirates is home to more than 100 different nationalities and a mix of cultures and different types of cuisine. These differences are strongly reflected by the food available in the country, especially in relation to sauces, dressings and condiments.

Folding cartons take healthy share of hot drinks sales due to better aroma retention

Folding cartons continue to remain very popular in 2018 particularly in tea and fresh ground coffee as they are better able to preserve aroma and flavour than flexible aluminium/plastic. Folding cartons are expected to remain the predominant packaging type for tea bags, with innovation in folding cartons being limited in 2018.

Slower growth in core consumer groups and new taxation on alcoholic drinks hit sales

The United Arab Emirates saw total alcoholic drinks packaging register a fall in unit volumes for the first time in the review period in 2018. Expats and the non-Muslim population, key consumer groups for alcoholic drinks in the United Arab Emirates, saw slower growth in the final year of the review period compared with previous years.

Packaging has role to play in emergence of upper-mass beauty and products

Beauty and personal care packaging experienced declining unit volumes for the first time in the review period in 2018. The year saw the introduction of 5% VAT across a wide range of products and services and declining consumer confidence, while currency exchange rates made it more expensive for tourists to purchase beauty and personal care products.

Smaller pack sizes drive growth in home care

As the economic turbulence in the country continues, consumer spending is being negatively affected. The search for value products is on the rise, and consumers are looking for ways to limit spending in a bid to restructure their budgets, including for home care products.

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