Middle East & Africa Aluminum Foil Packaging Market Size, Share & Trends Analysis Report By Product (Pouches, Containers, Blisters), By End Use (Food & Beverages, Cosmetics), And Segment Forecasts, 2020 - 2028

Report Overview

The Middle East & Africa aluminum foil packaging market size was valued at USD 1.94 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 4.8% from 2020 to 2028. A major shift from plastic packaging to sustainable packaging choices is anticipated to augment the growth of the market. The rising number of food service outlets and a resultant rise in demand for food packaging containers are expected to drive the market over the forecast period. The rapid expansion of the middle-class population in the region is further expected to play a pivotal role in the growth of the food & beverage sector. Among types of aluminum foil packaging, foil wraps are used for wrapping food products in households as well as in the food & beverage industry. Rising usage of blister packs for packaging of medicinal tablets & capsules is further expected to surge the demand for aluminum foil packaging.

Increasing demand for canned & frozen food products, infant formulas, and nutritional supplement powders packaged in metal tins is expected to boost demand for aluminum foil lids. Aluminum foil is considered a sustainable material owing to its reusability and degradability. Properties, such as rigidity, providing a barrier against moisture, light, and oxygen, and high aesthetic appeal make aluminum an ideal material choice for rigid as well as flexible packaging in multiple end-use industries.

The Middle East & Africa (MEA) was the second-largest aluminum-producing region in 2020. Countries under Gulf Corporation Council (GCC), such as U.A.E., Bahrain, Saudi Arabia, Qatar, and Oman, are prominent producers of primary aluminum. This is expected to support the market growth in the region.

With the advent of e-commerce, end users are increasingly placing bulk orders through online channels. Consumers can also procure packaging solutions by placing orders through websites operated directly by the packaging manufacturers. For instance, Saudi Arabia-based Ampco offers aluminum containers from its e-commerce portal.

Product Insights

The container segment dominated the market with a revenue share of 52.45% in 2020 and is likely to maintain its dominance during the forecast years. Aluminum foil containers are ideal for automated packaging lines as they can be used for packing hot and cold food products as well as can be easily used for freezing or reheating purposes. These factors are expected to drive the growth of the segment.

Aluminum foil wraps emerged as the second-largest product segment, in terms of revenue share, in 2020. The flexible and malleable nature of aluminum foil wraps enables household and food service end-users to easily wrap the food products and preserve them for later use. Aluminum foil laminates are used as one of the layers in liquid cartons, snack pouches, confectionery wraps, candy wraps, and pharmaceutical pouches or bags.

Pouches are a form of flexible packaging solution used for various products across the food & beverage, animal feed, personal care & cosmetics, and home care industries. Cost-effectiveness and convenience offered by pouches as compared to other rigid packaging solutions along with the growing demand for packaged foods & beverages are the key factors driving the segment.

Blister packs are majorly used in the pharmaceutical industry for packaging drug tablets and capsules. Completely aluminum-based blister packs, commonly known as Alu-Alu-based blisters, are also used to pack a range of pharmaceutical drugs. The blister packaging allows the packing of drugs that are highly hygroscopic or light sensitive and cannot be suitably packed with barrier plastic films, which supports the segment growth.

End-use Insights

Food & beverage is the key end-use segment that accounted for the highest revenue share of 50.81% in 2020 and is expected to witness strong growth from 2020 to 2028. Aluminum foil packaging can bear extreme temperatures and thus it can be used to reheat food products as well as to preserve them in deep freezers. Environmentally friendly nature and beneficial properties for food storage are impelling food & beverage companies to opt for aluminum foil-based packaging.

Pharmaceutical formulations, such as tablets, capsules, and lozenges, are extremely sensitive to contamination. Aluminum foil is a robust barrier to gases and light, thus, finds significant applications in the pharmaceutical industry. Cosmetic formulations commonly contain several active ingredients that are prone to contamination leading to loss of product functionality, thereby require an efficient packaging solution. Single-dose sachets of shampoos, after-shave, skin lotions, and liquid soaps are popular in regions with low-income populations as they are considered cost-effective. Therefore, African countries are likely to be significant markets for aluminum foil packaging for the cosmetics segment.

In the tobacco industry, aluminum foils are primarily used as an inner lining of cigarette packets. It protects aroma and improves the aesthetics of the overall packaging and thereby gaining traction in the tobacco market. Other end-use segments include pet food, electronics, military equipment packaging, and medical device packaging.

Country Insights

South Africa dominated the market with a revenue share of over 16% in 2020. Aluminum foil containers and related culinary items, such as confectionery dishes and foils, have been widely used in the catering and food industry in South Africa. The increasing consumption of aluminum foil packaging by end-use industries to support sustainable packaging initiatives is expected to drive market growth. Egypt is expected to grow rapidly and register the highest CAGR over the forecast period. The increased consumption of packaged food products and the growing food service industry are the factors expected to drive the regional market.

The United Arab Emirates has a large number of shopping complexes and malls that attract tourists, which has resulted in high cosmetic sales. The rapid growth in cosmetic sales is expected to further append to the growth of aluminum foil packaging as cosmetics manufacturers use aluminum foil packaging for protecting the products from the external environment. Saudi Arabia was the second-largest country, in terms of value, in 2020. Saudi Arabia has a vast food & beverage industry owing to the large population and growing consumption needs of the rising middle-income groups.

As per the United States Department of Agriculture (USDA), retail sales of packaged food in Saudi Arabia were approximately USD 21 billion in 2020. The easy availability of raw materials across the Middle East & Africa region is expected to propel the market growth. In addition, the availability of bauxite reserves, particularly in Saudi Arabia, and the complete integration of a few primary aluminum, such as Ma’aden and EGA, are likely to increase the production capability of the Middle East region in the coming years.

Key Companies & Market Share Insights

The market is moderately fragmented with the presence of a large number of small- and medium-sized domestic players. Several manufacturing companies, such as Novelis Aluminum and Constantia, have integrated backward in the value chain. Such companies are engaged in the production of aluminum foil, which is a raw material for the packaging and production of containers and pouches. The backward integration within the value chain has led to improved profits for such companies due to their ability to use high-quality supplies along with reduced distribution costs and better control over final product prices.

Key players are increasingly focusing on producing high-quality and food- and pharmaceutical-grade products as well as achieving ISO certifications for ensuring product quality. For instance, in June 2020, Symetal achieved the certification for FSSC 22000 (Food Safety System Certification 22000 - Version 5) for its Foil Converting Plant (Mandra, Attica). Some of the prominent players in the Middle East & Africa (MEA) aluminum foil packaging market include:

• Amcor plc

• Constantia Flexibles

• Novelis Aluminum

• Raviraj Foils Ltd.

• Ampco

• Saudi Factory for Aluminum Foils and Containers

• Caterpack

• Alcon

• Technical Aluminium Foil Co. LLC

• Cosmoplast

• Symetal

• Aluminium Foil Converters

• UNIPACK

• Express Flexi Pack

• ERAMCO

Middle East & Africa Aluminum Foil Packaging Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the regional and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the Middle East & Africa aluminum foil packaging market report on the basis of product, end use, and country:

• Product Outlook (Volume, Kilotons; Revenue, USD Million, 2017 - 2028)

  • Foil Wraps

  • Pouches

  • Blisters

  • Containers

  • Others

• End-use Outlook (Volume, Kilotons; Revenue, USD Million, 2017 - 2028)

  • Food & Beverage

  • Tobacco

  • Pharmaceuticals

  • Cosmetics

  • Others

• Country Outlook (Volume, Kilotons; Revenue, USD Million, 2017 - 2028)

  • Saudi Arabia

  • UAE

  • South Africa

  • Egypt

  • Morocco

  • Iran