Plastic is replacing paper in flexible packaging forms like display packs, combo pack because of better quality attributes. In fact, plastics accounts for 70% of all packaging solutions in GCC compared to a world average of 48%.
For metal, packaging weight per unit weight of product is high and also lacks in flexibility of size and operation unlike plastic packaging. Therefore in some segment like fruit juices flexible plastic packaging will compete with metal cans. Furthermore, the food industry is growing at 18% to 20% in Saudi Arabia annually and pre-packaged processed food constitutes 50% of the total industry.
The GCC retail market is also growing substantially growing at 9.5% every year and thus creating immense opportunities for flexible packaging. Overall, the flexible packaging market in the GCC region is at an emerging stage.
The packaging sector’s focus subsectors are mainly: Plastic films & chips, caps, closures, containers, bottles, cups, industrial bags with applications mainly in various sectors: 60% Food, 25% FMCG, 10% Medical and 5% others.
|Maskati Brothers & Co. |