The GCC disposables (single-use) packaging market (henceforth, referred to as the market studied) was valued at USD 1,879. 89 million in 2019, and it is expected to reach USD 2,328. 50 million by 2025, registering a CAGR of 4.
New York, Nov. 19, 2020 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "GCC Disposables (Single-Use) Packaging Market - Growth, Trends, Forecasts (2020 - 2025)" - https://www.reportlinker.com/p05986892/?utm_source=GNW
11% during the period of 2020-2025. Growth in the urban population and the consequent increase in demand for food service have a significant impact on the market’s growth.
- According to World Bank, in 2019, the urban population growth rate of the United Arab Emirates was around 1.67%, compared to 4.59% of Bahrain.
- Food service has grown to become a significant part of consumer spending. As this trend increases, packaging plays a crucial role in ensuring food safety and providing convenience to consumers. For instance, proper package labeling allows the food preparers to know the food source, its proper holding temperature, and the adequate amount of cooking needed.
- According to the International Monetary Fund (IMF), GCC’s economy is predicted to reach USD 2 trillion by 2020, with Saudi Arabia contributing USD 902 billion, followed by the United Arab Emirates (USD 502 billion), Qatar (USD 269 billion), Kuwait (USD 196 billion), Oman (USD 81 billion), and Bahrain (USD 40 billion).
- The growing importance of numerous factors, such as convenience, timeliness, and variety regarding food items among consumers, poses great potential for food disposables in the market. Moreover, consumers’ hectic lifestyle scenario has given rise to the trend of takeout and catering services.
- The food service sector sees disposables like packaging and cutlery as a safer alternative to reusable products during the COVID-19 outbreak. Businesses in the sector are turning to disposables in an attempt to prevent the spread of COVID-19.
- During the Covid-19 outbreak, many in the food service industry have been providing takeaway services to customers. One area in the food service sector to receive a massive boost during the COVID-19 pandemic is the delivery marketplace.
Key Market Trends
Quick-Service Restaurants Expected to Witness Significant Growth
- Quick service restaurants (QSRs) offer low-cost food options, focusing on speed of service. The minimal table service and emphasis on self-service makes this group different from traditional restaurants.
- Moreover, at QSRs, food, and beverages are paid for before consumption. Over the last decade, the regional foodservice market, specifically for these countries, has witnessed the growth of several international QSR chains and home-grown brands offering varied cuisines suiting the changing consumer preference.
- The franchise model will be crucial to the rise of QSR chains, which will fuel the growth of the market in the region. For example, regional authorities have started providing incentives to franchisees and franchisers to attract international brands and investors who would be interested in entering the market with the help of experienced local players.
- Apart from the leading GCC economies such as UAE and Saudi Arabia, countries like Qatar, Kuwait, and Bahrain also offer a promising investment domain in the QSR sector, which is evident from the rising number of food and beverage clusters in these countries.
- For instance, in February 2020, Al Baik, a Saudi Arabian quick-service chain, announced to open its second international outlet at Bahrain International Airport’s (BIA) new passenger terminal building. The new terminal at BIA will feature food and beverage outlets spread over a total area of 899 square meters.
Saudi Arabia is Expected to Show Significant Adoption
- The foodservice industry in Saudi Arabia is growing owing to increasing urbanization, rapid expansion in food delivery services, a rising number of young adults and working population, and rising disposable income in the country. For instance, according to trading economics, consumer spending in Saudi Arabia increased to SAR 293383 million in the fourth quarter of 2019 from SAR 290242 million in the third quarter of 2019.
- With the popularity of fast-food and casual dining, chained consumer food services are increasing at a fast pace. Casual dining restaurants are increasing in number in the country, with international brands, such as Applebee’s, Chilis, Outback Steak House, and TGI Fridays, marking their presence. Additionally, the global chains have followed the strategy of customization and localization through intelligent modifications in their menus. Such international expansions are also driving the foodservice disposable market growth in the country.
- The food home delivery service market in the country is driven by an increase in the number of mergers and acquisitions (M&A) of existing restaurants. HungerStation, an online food delivery service, was acquired by Hellofood (a division of the Food Panda, an online food delivery service provider).
- Consumer lifestyles in the region are increasing demand for ready to eat (RTE) foods. According to the Napco National, a Saudi packaging company, the rise of grab-and-go meals and RTE are shaping the future of the food packaging trends in the country.
- According to the Saudi Arabia General Investment Authority, the country is expected to witness around USD 59 billion worth of investment in its food industry by 2021. Such an investment would augment the market’s growth positively over the forecast period.
There is increasing competition among local vendors in the country in the market. Owing to a wide range of suppliers of food service disposable, buyers have the option to choose from multiple vendors. The market has also witnessed international players’ expansion. The local packaging companies often operate in tighter margins, compared to the foreign vendors, owing to factors, such as fluctuations in raw material prices, high labor costs, and intense competition from the foreign suppliers. The foreign suppliers benefit from several technological advancements in the packaging.
- March 2020 - UAE’s food and beverage manufacturer, National Food Products Company (NFPC) , launched its Oasis brand of drinking water in a sustainable Tetra Pak carton packaging, the first water brand in the region to do so.
- July 2019 - Nestlé’s (in Dubai) Belgian mineral water brand, Valvert, launched a bottle made entirely from recycled PET (rPET). Nestlé’s packaging ambition, announced in April this year, is to make 100% of its packaging recyclable or re-usable by 2025.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
Read the full report: https://www.reportlinker.com/p05986892/?utm_source=GNW
ReportLinker is an award-winning market research solution. Reportlinker finds and organizes the latest industry data so you get all the market research you need - instantly, in one place.
CONTACT: Clare: firstname.lastname@example.org US: (339)-368-6001 Intl: +1 339-368-6001