According to a new study by Pira International, the Middle East and North Africa (MENA) is becoming an attractive investment opportunity for packaging machinery and material suppliers, and converters.
“The location of the region in proximity to the European markets makes it an attractive alternative to western producers looking for low cost production sites,” explains Adam Page, publisher of The Future of Packaging in the Middle East and North Africa- Market Forecasts to 201.
The MENA region has enjoyed economic growth averaging over 5% per annum since 2000, on the back of rising oil prices. As this has become less dependable, many countries in the oil producing sector are taking steps to reduce reliance on this finite resource and attract investors into non-oil industries. They are offering attractive incentives in the form of tax breaks, profit repatriation guarantees and others via Free Trade Zones.
Consumption of packaging material in MENA in 2008 amounted to 19.1 million tonnes, worth US$27.5 billion. According to Pira’s report, this is expected to grow by almost 4% in 2009 and on average by just over 5% annually to reach a total of 25.5 million tonnes by 2014, worth about US$37 billion at 2008 prices.
Looking at opportunities by material, the report predicts that the strongest growth in demand will be for liquid packaging board, foil, flexible plastics/laminate materials and rigid plastics and glass. The healthcare sector will also provide further stimulus to packaging demand over the medium term.
The Future of Packaging in the Middle East and North Africa - Market Forecasts to 2014 is available now for £3,500.
