Western packaging companies should look to the Middle East and North Africa (MENA) region to produce low-cost packaging products, a new report says.
The MENA packaging market is becoming a good place for Western producers wishing to produce low-cost packaging products, according to the report 'The Future of Packaging in the Middle East and North Africa' by UK packaging company Pira International.
Most countries of the region involved in oil-producing sectors are gradually focusing on non-oil industries to minimise dependence on the finite resource of oil.
According to the findings of the report, lucrative offers such as free trade zones, profit repatriation guarantees and tax breaks are being offered to Western investors.
In 2008 packaging material consumption in the MENA touched 19.1 million tonnes and was worth $27.5bn. The report predicts the industry will grow by 4% in 2009 and by an average of 5% annually to reach 25.5 million tonnes by 2014, which is worth nearly $37bn (at 2008 prices).
The report also predicts that foil, liquid packaging board and flexible plastic/laminate materials will present the strongest growth.
The MENA countries covered by the study are Tunisia, Egypt, Iran, Kuwait, the UAE, Algeria, Libya, Morocco, Qatar, Israel, Saudi Arabia and Turkey.
