Middle East and Africa Stretch and Shrink Wrap Market Size, Share & Trends Analysis Report By Product (Hoods, Sleeves and Labels, Wraps), By Resin (LLDPE, LDPE, PVC, Other Resins), By Application (Food and Beverage, Industrial Packaging, Consumer Goods, Electronics, Paper & Textile, Pharmaceutical) and By Country(UAE, Turkey, Saudi Arabia, South Africa, Egypt, Nigeria, Rest of MEA) Forecasts, 2024-2032

Market Overview

The Middle East and Africa stretch and shrink wrap market witnessed significant growth in the past and is expected to grow at a CAGR of 4.2% during the forecast period (2022-2030).

To lock and secure cased goods onto a pallet, use the stretch wrap, a thin, flexible plastic sheet. It is frequently made of polyethylene. Shrink wrap can be heated and used to cover objects loosely. Shrink wrap holds the goods in place after being heated. COVID helped to drive the market for stretch and shrink wrap. The fierce competition from conventional packaging limits the market's growth. On the other hand, the market for stretch and shrink wrap benefits from growing retail product sales and online shopping.

Rapid urbanization and infrastructure development drive the Middle East and Africa stretch and shrink-wrap market. Economic and political instability acts as a restraint for this market. On the other hand, the food and beverages industry growth acts as an opportunity for the Middle East and Africa to stretch and shrink-wrap market

Market Dynamics

Middle east and africa stretch and shrink wrap market drivers

Rapid urbanization and infrastructure development

Rapid urbanization occurs across the Middle East and Africa, where infrastructure is being built, and population concentrations are rising. This tendency increases the need for effective packaging solutions for consumer items, building materials, and other industries. Stretch and shrink wrap are the best materials for fastening and packing because they provide the most stability, protection, and value. The industry is expanding because the construction and infrastructure industries use these materials to package building supplies, including pipes, cables, and panels.

Middle east and africa stretch and shrink wrap market restraints

Economic and political instability

Stretch and shrink wrap market expansion may be hampered by political and economic unrest in a few Middle Eastern and African nations. These factors may impact the entire demand for and investment in packaging materials, which can also result in changes in currency exchange rates, trade restrictions, and ambiguous business environments. Instability may damage supply networks, making it difficult for businesses to maintain reliable production and delivery.

Middle east and africa stretch and shrink wrap market opportunities

Food and beverages industry growth

The Middle East and Africa have a thriving food and beverage industry driven by population growth, urbanization, and changing consumer preferences. Stretch and shrink wrap are essential for maintaining food and beverage products' quality, hygiene, and freshness. Reliable and aesthetically pleasing packaging solutions are required as the demand for packaged food and beverages rises. Offering stretch and shrink-wrap solutions with improved barrier qualities, printability for branding purposes, and convenience features like resealability will allow manufacturers to take advantage of this opportunity.

Regional Analysis

The Middle East and Africa stretch and shrink wrap market is segmented based on country by Saudi Arabia, UAE, Israel, Qatar, South Africa, and the Rest of the Middle East and Africa. The rest of the Middle East and Africa dominates the country market and is expected to grow at a CAGR of 3.4% during the forecast period.

Governments in the MEA region are investing heavily in the construction and infrastructure industries. Programs like Saudi Vision 2030 are anticipated to increase demand for cement, aluminum, and other building materials. Infrastructure needs are rising as a result of urbanization and rising population. Such measures should increase demand for stretch and shrink films used in the bulk transportation of building materials.

South Africa is also a major producer of automobiles in the Middle East and Africa. They are considering that 2019 will see more than 0.6 million automobiles manufactured. South Africa has held the region's top spot. More than 200 automobile component manufacturers are nationwide, including Senior Flexonics, Arvin Exhaust, Corning, and Bloxwitch. Another element driving the demand for stretch and shrink films in South Africa is the government's measures to promote the nation's auto manufacturing. For instance, the South African Automotive Masterplan (SAAM) was launched by the government to enhance global competitiveness and transform the sector towards sustainable development by 2035.

Segmental Analysis

The Middle East and Africa stretch and shrink wrap market is segmented based on Type, Product, Distribution Channel, and Country.

Based on material, the market is segmented by Hoods, Sleeves, Labels, and Wraps.

Sleeves and Labels hold the major share of the market and are expected to register a CAGR of 4.9% over the forecasted period. Labels made of polyester or plastic that completely encircle a product and fit the packaging's precise geometry are called sleeves and labels. Stretch labels, made of LDPE and stretchable, can be pulled over the product container. When exposed to heat while transported via a heat tunnel, shock sleeves are placed loosely on the product package and molded to it. The product can obtain a high-impact presentation on the store shelf thanks to the 3600-message branding. Stretch and shrink-sleeve labels are a preferred technique of product labeling that is gaining popularity.

Based on Resin, the market is segmented by LLDPE, LDPE, PVC, and Others.

LDPE holds the major share of the market and is expected to register a CAGR of 3.9% over the forecasted period. As more individuals order meals for delivery to their homes, there is an increase in the demand for LDPE, which is largely due to COVID. In India, the cost of LDPE has increased by USD 45 to USD 930–950. These elements fuel the segment's expansion.

Based on End-Users, the market is segmented by Food and Beverage, Industrial Packaging, Consumer Goods, and Pharmaceuticals.

Food and Beverage holds the major share of the market and is expected to register a CAGR of 4.7% over the forecasted period. Demand for thin wall packaging is increasing in the post-COVID era due to the demand for packaged and quickly consumed food. Along with this, the market for stretch and shrink films is supported by the positive trend of cost-effective packaging, such as packaging for cups, jars, food, beverages, and other fragile products. As restaurants quickly innovated and switched to takeaway and delivery, according to statistics, there was a more than 150% increase in the number of restaurants actively using online ordering with up-serve during the Covid era from February to April, along with an 840% increase in weekly sales via online ordering. The elements above all influence sector growth.

Recent Developments

• Feb 2023- Bollore Inc declared that it had paid USD 3.7 billion to acquire the assets of Sealed Air Corporation's Food Care division. Bollore's portfolio of goods and services for food packaging will grow due to the acquisition.