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The opening of Propaper Dubai

MEA paper and pulp industry poised to cross over $20bn

DUBAI, 28 days ago

The Middle East and Africa (MEA) paper and pulp industry is on a growth surge, poised to cross over $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. 
 
The demand is for paper packaging products, industry experts have said 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.
 
Paper industry turning sustainable
“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 $9.1 billion in 2023, and is poised to grow to $12.8 billion by 2032 at a CAGR of 3.8%. 
 
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% between 2024-2029 from the current $525 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 $635.9 million by 2028, growing at CAGR of 2.21%, according to Business Market Insights.--TradeArabia News Service
 



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