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Middle East Industrial Cans Market - Forecast(2023 - 2028)
Middle East Industrial Cans Market Overview
The Middle East Industrial Cans Market size is projected to reach US$2.2 billion by 2027, after growing at a CAGR of 1.6% during the forecast period 2022-2027. Industrial cans are used for packaging chemicals, paints & coatings and other products for containing, storing and delivering commodities. Industrial cans come in a variety of sizes and designs to suit a wide spectrum of uses and industries. Industrial cans made of steel, tinplate, aluminum and other materials are more durable than paper and plastic cans. Higher durability ensures superior protection to the packed products. This often results in enhancing the shelf life of the products. The growth of the food industry in the Middle East region is the primary factor accelerating the Middle East industrial cans market growth. However, in 2020, the production restriction in the Middle East region created a bottleneck for the Middle East industrial cans industry growth. In 2021, ease of Covid-19-related restrictions propelled the Middle East industrial cans industry growth. Moreover, the surging demand for non-alcoholic beverage cans in the Middle East is driving the Middle East industrial cans market growth. As a result, the Middle East industrial cans market size will grow during the forecast period of 2022-2027.
Report Coverage
The "Middle East Industrial Cans Market Report–Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Middle East Industrial Cans Market.
By Material Type: Aluminum, Steel (Tin-coated Steel (Tinplate), Electrolytic Chromium Coated Steel (ECCS) and Others), Plastic (Polypropylene (PP), Polyethylene Terephthalate (PET), Polyvinyl Chloride (PVC) and Others), Paper and Others.
By Product Type: Food Cans, Beverage Cans, Aerosol Cans and Others.
By Application: Food (Sea Food, Meat, Infant Nutrition & Dairy, Vegetables, Biscuits, Cookies & Confectionary, Fats & Oils, Convenience Food and Others), Beverage (Alcoholic and Non-alcoholic), Pharmaceutical, Cosmetics & Personal Care (Skin Care, Body Care, Perfumes and Fragrance and Others), Paints & Coatings, Chemicals and Others.
By Country: Saudi Arabia, UAE, Israel and the Rest of the Middle East.
Key Takeaways
- UAE dominated the Middle East Industrial Cans Market, owing to the growth of the meat industry in the country. For instance, according to the United States Department of Agriculture (USDA), in 2020, the meat production in UAE was 50,000 metric tons and in 2021, it was 56,000 metric tons, an increase of 12%.
- The increasing utilization of aluminum in industrial cans to ensure superior strength of the cans is spurring market growth in the Middle East.
- Moreover, the recent developments associated with sustainable industrial cans are driving the Middle East industrial cans market growth.
- However, the regulations associated with the use of industrial cans in the Middle East may restrict the market growth during the projected forecast period.
Figure: Middle East Industrial Cans Market Revenue Share, By Application, 2021 (%)
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Middle East Industrial Cans Market Segment Analysis – by Material Type
The aluminum segment held the significant Middle East Industrial Cans Market share in 2021 and is forecasted to grow at a CAGR of 1.8% during the forecast period 2022-2027. Aluminum helps to preserve the contents of food, cosmetics and pharmaceutical products by keeping out air, light, liquid and bacteria, owing to its strong barrier properties. Aluminum transfers heat 2.4 times faster than iron. Aluminum can lose and absorb heat very quickly due to its ability to produce exceedingly thin sheets. Thus, it is ideal for holding cold drinks. Moreover, on almost every metric, aluminum cans are the most environmentally friendly beverage packaging. Compared to other package types, aluminum cans have a greater recycling rate and contain more recycled material. Marketers can package and ship more beverages with less waste because they are robust, stackable and lightweight. Also, aluminum cans are worth far more than glass or plastic, they effectively subsidize local recycling programs and help them become financially viable. Hence, owing to the above-mentioned benefits of aluminum, it is preferred for industrial cans over other materials in the Middle East. This factor is driving the segmental growth of the market.
Middle East Industrial Cans Market Segment Analysis – by Application
The food segment held the significant Middle East Industrial Cans Market share in 2021 and is forecasted to grow at a CAGR of 2.0% during the forecast period 2022-2027. Industrial cans are utilized in food to retain their filling's flavors and nutritional content for up to several years. Due to the long storage times, interactions between the packaging and the food must be kept to a minimum, so that food is preserved for a longer time without losing its nutrient values. Thus, eco-friendly industrial cans are deployed for food packaging. The surge in investments in the food industry and expansion of new food manufacturing facilities in the Middle East are driving the food industry growth in the region. For instance, according to the Saudi Arabia Ministry of Industry and Mineral Resources, the amount of investment in the food products sector in the Kingdom is 6.12 percent of the total volume of investments in the industrial sector. Hence, the growth of the food application in the Middle East is fueling the demand for the industrial cans market. As a result, the Middle East industrials cans market is growing.
Middle East Industrial Cans Market Segment Analysis – by Country
UAE is the dominating country as it held the largest Middle East Industrial Cans Market share in 2021 up to 37%. The growth of the food, beverage, cosmetics & personal care and other similar industries are fueling the industrial growth of the UAE. The increasing investments in the new food manufacturing facilities, surging need for food security and others are the crucial determinants proliferating the food industry growth in the UAE. For instance, in December 2021, WenChao Group invested over AED735 million ($200 million) to build a food manufacturing and distribution facility in the commercial district. The new manufacturing facility will be operational in 2023. Also, in October 2021, Al Ameera Food invested AED100 million (about $27 million) over the next five years to build three plants in the business district in UAE. The investment will expand food manufacturing in UAE. Therefore, the expansion of the food industry in the UAE will boost the demand for industrial cans. This, in turn, will boost the Middle East Industrial cans market size growth in the upcoming years.
Middle East Industrial Cans Market Drivers
Surging Demand for Non-Alcoholic Beverage Cans
Industrial cans manufactured from steel, tinplate, aluminum and other materials are employed in non-alcoholic beverages, including fruit juices, bottled water and more to protect the non-alcoholic beverages products from spilling. The high temperature, increasing disposable income and others are some of the key reasons accelerating the expansion and development of non-alcoholic beverage manufacturing facilities in the Middle East. For instance, in January 2022, Kerry opened a new manufacturing facility in Saudi Arabia. The plant covers an area of 21,500 square feet and also includes a manufacturing unit for non-alcoholic beverages. In January 2019, Nestle increased production at its two water factories in the United Arab Emirates to keep up with the rising demand for some non-alcoholic beverages. Thus, the demand for industrial cans is surging due to the recent expansion of non-alcoholic beverage in the Middle East. This factor is driving the Middle East industrial cans market growth.
Increasing Adoption of Sustainable Industrial Cans
Industrial cans made of steel and aluminum are unique in that recycling them has a substantial positive influence on the environment and the economy that is currently experienced on a large scale because industrial cans can be recycled endlessly. These and other factors make aluminum and steel cans the best environmentally friendly packaging option for food and beverage containers. For instance, using recycled aluminum instead of new metal saves energy consumption and greenhouse gas emissions by 80%. 10 Cans reduce greenhouse gas emissions during cooling and transportation. When delivered and chilled in small markets and convenience stores, emissions associated with a 12-oz can are 45 percent lower than those of a 12-oz glass bottle and 49 percent lower than those of a 20-oz plastic bottle. Therefore, owing to the benefits of sustainable cans, their adoption is increasing across various industries in the Middle East, which, in turn, is propelling market growth.
Middle East Industrial Cans Market Challenges
Regulations Governing the use of Industrial Cans in Middle East
The governments across the Middle East region have implemented strict regulations governing the usage of industrial cans. For instance, GSO 839/1997 and 2231/2012 have also been adopted by the Middle Eastern countries. According to these regulations, food contact materials used for cans must be produced by GMPs or other quality standards that ESMA has established. Moreover, the draught standard also refers to other GSO standards, such as the one for aluminum foil packaging, the two-piece steel can standard and the one for plastic packaging. Thus, such governmental regulation in the Middle East may restrict the growth of the Middle East Industrial Cans industry in the coming years.
Middle East Industrial Cans Industry Outlook
Technology launches, acquisitions and increased R&D activities are key strategies adopted by players in the Middle East Industrial Cans Market. The top 10 companies in the Middle East industrial cans market are:
- Ball Corporation
- Crown Holdings
- SAPIN SA
- Can-Pack Middle East
- Middle East Metal Can LLC (Trinity Holdings)
- Gulf Cans Industries
- Emirates Metallic Industries Company Limited (EMIC)
- Balmer Lawrie (UAE) LLC
- Dayal Metal Containers Factory LLC
- Petco Gulf FZE
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