NEIL FARMER
NEIL SAYS... Neil Farmer, fellow of the Institute of Packaging and all-round packaging know-all, talks about what he’s been getting up to in the industry
Having just returned froma trip to Oman, Iwould like to reflect on the packaging market in theMiddle East and howit relates to British and European companies.
I
believe it is important to realise that theMiddle East is not a homogeneous single
market, akin for example to Western European countries. Each state or collection of states has its own characteristics and local influences play an important part in establishing an overall picture. The effects of the Arab Spring are still being felt in certain countries, notably Syria and, as we know, there is still unrest elsewhere.
GROWING PLASTIC PACKAGING DEMAND Notwithstanding these factors, there is a growing demand for plastics packaging in all its forms in theMiddle East, as seen by the investment in PET capacity by Octal at its plant in Salalah, Oman. The business is forecast to have annual sales of $1.5 billion by 2012. It has recently benefitted from $296million of bank funding, allowing it to add an additional 527,000 tonnes of PET capacity to the 400,000 tonnes of resin and sheet currently produced. Octal has a global presence and has targeted China, India and Europe and North America for further export growth. The focus on PET by the company, which is unsurprising given the abundance of petrochemicals in the country, highlights an important trend in theMiddle East. It is a trend which is being replicated elsewhere in the world and one which is universal in its
importance.More and more, consumers want convenient and environmentally friendly packaging. They want improved
value and performance throughout the whole supply chain, particularly in these recessionary times. Ultimately they want products to be fresher, more hygienically packed and with longer shelf life. As a
in Oman and elsewhere in the Middle East. Potential exists for businesses with knowledge, wherewithal and expertise. Technology transfer is very much the phrase on many people’s lips and joint venture
“I believe it is important to realise that the Middle East is not a homogeneous single market. Each state or collection of states has its own characteristics”
growing number of countries in the world are discovering, PET meets a myriad of requirements, making it the preferred material for many foods, beverages and other consumer goods. Whilst in Oman I was also
interested to learn that Octal would be exhibiting at the Gulfood 2012 Exhibition, the region’s premier food processing industry trade show, held in Dubai in November. The company will be displaying its latest innovations in PET for the packaging of dates, of which there are a lot in theMiddle East. So the supply side seems to be progressing nicely in Oman and their near neighbouring United Arab Emirate countries.
POTENTIAL FOR BRITISH COMPANIES But what of the potential for British exports to these territories? Well you would be right to think it is going to be a more difficult case. The value of exports from the UK to Oman, for example, was £380 million in 2011, down from £400 million in the previous year due to exchange rate fluctuations. However, according to UK Trade and Investment (UKTI) in Oman, bilateral trade between the two countries remained stable in 2011.Which leads me to the point about British companies
opportunities are favourably viewed. British engineering excellence is still sought after and joint collaboration projects are likely to be encouraged. Whilst I was in Oman it was
reported that a Northern Irish trade mission had made a two- day visit to the sultanate, which appeared to have gone well. It is
According toNeil, there is a growing demand for plastic packaging in the Middle East as consumers demand fresher,more hygienically packed products
encouraging that British businesses are making the effort to explore new opportunities in the country. I would particularly urge packaging companies with machinery and engineering skills to investigate more.
RAPID PROGRESS IN PACKAGING INNOVATION As the photograph from my visit shows, Oman is certainly progressing rapidly in terms of new technology and packaging innovations, particularly in plastics, both rigid and flexible. There is still much to be achieved, but, as consumer disposal income increases, innovations will continue to come to the fore. The whole of theMiddle East is going through rapid change and the packaging market is no exception. These are certainly exciting times.
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