Middle East has one of the highest GDP per capita, so the consumers have more disposable income to spend on e-commerce retail, luxury retail and retail in stores. With the increase...
The Middle East and Africa (MEA) flexible packaging market is expected to grow from USD8.55 billion in 2016 to USD12.12 billion by the end of 2021 at a CAGR of 5.99 percent. The UAE leads the market in terms of revenue followed by South Africa. This growth is attributed to the growing economies of the region and the relatively low inflation. This gives the consumer more money in hand to spend on products thereby improving the overall lifestyle of the population. The concerns for this area are that the region is prone to be unstable. This instability caused due to extremism and terrorism affects the companies investing in the market and also spooks the future investors. With the USA providing a lot of support to countries from this region these fears should be allayed. As sanctions against Iran are being lifted gradually this region will grow and prosper. Africa is on the rise. Economy, for the most part, is booming given the relatively stable political scenario in the region. Africa's GDP growth from 4.7 percent in 2013 to 5.2 percent in 2014 and the FDI growth of 16 percent, reaching USD43 billion in 2014, shows a positive economic trend. Countries across Africa, from mineral-rich Sierra Leone and Congo to agrarian economies like Ethiopia and Rwanda, have shown growth across multiple macro-economic parameters. With inflation in the region going down from 10.7 percent in 2013 to 6.2 percent in 2014, domestic spending is on the rise. Retail, from e-commerce to mom and pop stores, has racked up the biggest gains. Packaging in Africa is fast catching up to meet the growing needs of a continent that is booming with investment from a vast number of foreign players. Given the relative lack of proper infrastructure, the vast distances that goods need to be transported over land from a few international ports make flexible packaging a necessity. Food and industrial goods imports into Africa make up a significant share of the flexible packaging market in the region. Rising demand for packaged foods, a need to keep costs down and investments in food processing are propelling the growth of flexible packaging in the region. Nigeria is expected to have the highest growth in terms of adoption and investment of flexible packaging, with the rest of Africa showing single-digit growth for the market. While missing and underdeveloped supply chains remain an obstacle for rapid growth in demand for flexible packaging in the region, the opportunities for vertical growth in manufacturing and food processing are tremendous.