Middle East and Africa Retort Pouch Market Size, Share & Trends Analysis Report By Material (Polypropylene, Polyethylene, Polyamide, PET, Aluminium Foil, Others), By Packaging Type (Stand-up Pouches, Flat Pouches), By Closure Type (Tear Notch, Zipper, Spout), By Application (Food, Beverage, Pet Food, Others) and By Country(UAE, Turkey, Saudi Arabia, South Africa, Egypt, Nigeria, Rest of MEA) Forecasts, 2022-2030

Market Overview

It is anticipated that the market in the Middle East and Africa region will expand at a rapid pace, reaching a total value of 991 million USD in the year 2030, with a compound annual growth rate (CAGR) of 7.7%.

A retort pouch, also called a retortable pouch, is a type of food packaging that is made up of flexible plastic and metal foil laminate. Another name for this type of pouch is a retort able pouch. It is utilized as an alternative to typical industrial canning methods for the sterile packaging of a wide variety of food and drink that has been processed using an aseptic technique. The foods that are packaged range from water to fully cooked, thermo-stabilized (heat treated), high-calorie meals like Meals, Ready-to-Eat (MREs), which can be eaten cold, warmed by submerging them in hot water, or heated with a flameless ration heater. The average calorie content of these meals is 1,300.

The expansion of pre-packaged goods, which are typically packaged in stand-up retort pouches, has been fuelled by increased urbanization, hectic work lives, rising single-household populations, and rising consumer spending power. These factors have acted as significant drivers for the retort pouch sector. 

Market Dynamics

Key Market Drivers

• Increased Interest in Packaged Goods: Food and other modern goods that are brought into Middle East and Africa account for a significant percentage of the market for retort pouches in that region. The growth of the retort pouch market in the region is being driven by a number of factors, including an increased interest in packaged goods, the need to reduce costs, and an interest in food processing. It is anticipated that UAE, South Africa and Nigeria would show the most significant development in terms of the reception and speculation of retort pouches, while the rest of Africa will have single-digit growth for the market. There are enormous opportunities for vertical expansion in manufacturing and food processing, despite the fact that absent and immature supply chains continue to be a barrier to the rapid development that is popular for retort pouch packaging in this region.

• Expansion of the Pharmaceutical industry in the region: Over the course of the speculated time frame, it is projected that both the Middle East and Africa would experience significant economic growth. It is expected that the expansion of the pharmaceutical industry in the Middle East, particularly in Saudi Arabia, as a result of rising healthy consumption combined with support from the government will have a positive effect on the expansion of the retort pouch industry over the expected time period. It is also estimated that countries in Africa will generate a significant amount of growth potential for retort pouches over the period under consideration.

Key Market Restraints

• Instability and risk in the Region act as restraints to growth: The fact that this location has the propensity to be tense is one of the problems regarding this sector. This instability is brought on by the fact that radicalism and scaremongering have an impact on the companies that put resources into the market and also frighten future financial specialists. These sentiments of dread should be reduced given the substantial support that the United States of America is providing to countries in this region. This region is going to experience growth and improvement as the sanctions against Iran are gradually lifted one by one. Africa is rising to prominence. In light of the relatively stable political climate that prevails in the area, the local economy is thriving in general.

• Retort Pouches hinder the path toward sustainability: Single-use plastics are detrimental because they fill landfills. Consumer awareness and government activities highlight plastics' non-degradability. Many manufacturers use recyclable plastics or packaging to overcome the problem. Retort pouches can't be recycled since they lack layers of laminate that can be broken down easily. Lack of recycling facilities and inadequate recycling infrastructure penetration pull the MEA retort pouch market down. Retort packaging requires considerable capital investment for machinery, which uses more resources and energy than standard packing.  These will restrain the adoption of retort pouches in this region during the forecast timeframe.

Regional Analysis

The Middle East and Africa Retort Pouch Market are expected to grow at a CAGR of roughly 7.7% to USD 991 million in 2030. In terms of income, the UAE leads the market, closely followed by South Africa. Israel is considered to have the most advanced development. This development is attributed to the locale's emerging economy and modest expansion. This provides the customer with more cash on hand to spend on things, hence boosting the people's overall quality of life.

In recent years, the demand for foods and drinks across the Middle East and Africa region has expanded as a result of a number of factors, including the development of infrastructure, high birth rates, and the expansion of metropolitan areas. A favorable influence on the expansion of the total market is also anticipated to result from the growing demand for meat, fish, and poultry throughout the course of the period covered by this projection.

The market for retort packaging is researched, and market size estimates and trends are offered. These are broken down according to the type of product, material, channel of distribution, and end-use industry, and major countries.

The study on the retort packaging market covers the countries of South Africa, Saudi Arabia, the United Arab Emirates, and the remaining part of the Middle East and Africa (MEA) as a whole. 

The market for retort packaging is currently dominated by UAE and South Africa in the Middle East and Africa region. It is anticipated that an increase in demand for retort packaging from the food and beverage industry will be the primary driver of demand in this region.

It is expected that the expansion of the pharmaceutical industry in the Middle East, particularly in Saudi Arabia, as a result of rising healthy consumption combined with support from the government will have a positive effect on the expansion of the retort pouch industry over the expected time period.

Additionally, the specific market-affecting variables and changes in the market regulation that will have an effect on the present and upcoming trends of the market are detailed in the portion of the research that is dedicated to each individual country. Some of the data points that are used to estimate the market scenario for different countries include an examination of the upstream and downstream value chain, technical trends, and porter's five forces. When providing a forecast analysis of country data, other factors that are taken into consideration include the presence and availability of Middle Eastern and African brands, as well as the difficulties those brands have encountered as a result of large or scarce competition from local and domestic brands, the impact of domestic tariffs, and trade routes.

Segmental Analysis

Other materials used in the industry include polypropylene, polyethylene, polyamide, PET, aluminum foil, and others. Polypropylene will be the fastest-growing sector, with a projected market value of USD 1,690.8 million in 2021. With an annual growth rate of 8.1%, it will reach a market value of USD 3,015.8 million by 2030. Extreme temperature and chemical resistance, as well as rising applications in automotive, packaging, healthcare, electronics, and building and construction, will all help drive market growth. The value of the sector will be enhanced by higher tensile strength, stronger barriers, and lower costs. The PET industry is predicted to have the second-largest market share in 2030, with a value of USD 1,453.8 million.

Stand-up pouches and flat pouches are the two main forms of packaging on the market. Stand-up pouches will have the largest market share, with a market value of USD 2,482.2 million in 2021. It will reach a value of around USD 4,573.9 million in 2030, with a CAGR of 7.9% over the projected period. The segment's growth will be aided by sustainability, lightweight construction, and increased printability and saleability. Flat pouches are predicted to reach USD 3,693.4 million in 2030, owing to their ease of use and availability in a wide range of materials and seals.

Tear notch, zipper, and spout closures are the three most common styles on the market. The zipper segment will have the greatest market share over the forecast period, with a market value of USD 1,828 million in 2021. It will be worth $3245.1 million in 2030. The CAGR is predicted to be 7.3% due to the ability to access information several times due to its utility and increased use of e-commerce and on-the-go applications. The tear-notch industry is predicted to account for the second-largest market share in 2030, with a market value of USD 3,137.9 million.

Food, beverages, pet food, and other categories of products can be found on the market. Food will hold the largest market share over the forecast period, with a market value of USD 2,499.6 million in 2021. It is predicted to grow at a 7.1% compound annual growth rate. According to projections, the market in 2030 will be valued at USD 4,123.2 million. The increased temperature resistance and the ability to incorporate it into ready-to-eat packaging will boost the segment's growth. With an expected value of USD 1,701.3 million, pet food will have the second-largest market share in 2030.

Impact of covid-19

The automotive industry is critical to the economy's growth. However, during the second and third quarters of 2020, the COVID-19 outbreak impacted the whole automotive supply chain, affecting new car sales in FY 2020.

South America is most affected by COVID-19, with Brazil leading the way, followed by Ecuador, Chile, Peru, and Argentina. South America's government (SAM) has taken a number of steps to protect its citizens and stem the spread of COVID-19. South America is expected to have fewer export revenues as commodity prices fall and export volumes fall, particularly to China, Europe, and the United States, which are all significant trading partners. The manufacturing industry, especially automotive manufacturing, has been damaged by containment measures in various South American countries. Due to the pandemic, major automotive manufacturers have also temporarily halted manufacturing in the region as a cost-cutting move. Furthermore, the automobile disc brake industry has been significantly affected in 2020 due to a lack of raw materials and supply chain disruption.

The Automotive Brake System control module of a vehicle is meant to alert the driver with a warning light if the system fails. The module itself is rarely defective; instead, the sensors or the wiring to the sensors are frequently defective. The most typical cause of dysfunction is when the Automotive Brake System is contaminated with particles or metal shavings. There is no signal continuity when sensor wiring is destroyed. Brake fluid becomes contaminated in corrosive situations, and the hydraulic unit fails to function.

Recent Developments

• December 2021- Sonoco bought Ball Metalpack in 2021. Acquisition boosts Sonoco's consumer packaging business. Ball Metalpack is the largest North American aerosol maker and a major developer of sustainable metal food and household packaging. This purchase will boost cash flow and earnings. Expands company's packaging.
• February 2021- SEE announced the acquisition of Foxpak Flexibles Ltd. (Foxpak) under SEE Ventures in February 2021. Foxpak uses digital printing on flexible packaging to boost customer branding. Their systems may be quickly scaled to match any customer's production needs. This purchase will boost cash flow and earnings. Expands company's packaging.