UAE Paper Packaging Market To Reach $6.09 Billion By 2033

September 2025 | Report Format: Electronic (PDF)

UAE Paper Packaging Market Growth & Trends

The UAE paper packaging market size is anticipated to reach USD 6.09 billion by 2033, growing at a CAGR of 5.3% during the forecast period, according to a new report by Grand View Research, Inc. The increasing push toward sustainability and eco-friendly materials primarily drives the market growth. The UAE government has been actively introducing regulations to reduce plastic usage, such as Dubai’s ban on single-use plastic bags (effective from 2024). These regulations are encouraging industries, particularly food service, retail, and FMCG, to switch from plastic to paper-based alternatives. For example, supermarkets and QSR chains are adopting paper bags, cartons, and wraps as a compliance measure while also showcasing their commitment to environmental responsibility. This regulatory backing acts as a catalyst for the growth of paper packaging.

The UAE has witnessed exponential growth in the e-commerce and modern retail landscape, significantly accelerating the demand for paper-based packaging solutions. According to the Dubai Chamber of Commerce, the UAE ranks as the second-largest e-commerce market in the GCC, only behind Saudi Arabia. In 2023, the UAE's e-commerce market reached a total size of USD 7.5 billion. This market is projected to exceed USD 13.3 billion by 2028.

The rapid growth of e-commerce in the UAE is driven by the tech-savvy Gen Z and millennial population, bolstered by strong government support and significant investments in digital infrastructure. In 2023, the top e-commerce verticals by value were consumer electronics, apparel, and footwear. Additionally, free zones such as Dubai CommerCity and EZDUbai (Dubai South) are expected to fuel the growth of e-commerce in the country. These zones offer facilities and services specifically designed to assist businesses engaged in digital commerce.

Moreover, UAE consumers are increasingly aware of the environmental impact of their purchasing choices, driving demand for sustainable packaging solutions. Paper packaging, with its biodegradable and recyclable properties, is perceived as a more responsible choice compared to plastics. Moreover, brands are using premium paper-based designs, embossing, and printing technologies to enhance their packaging appeal, particularly in luxury goods, cosmetics, and personal care segments. For example, high-end cosmetic and fashion retailers in Dubai malls rely on paper-based shopping bags with premium finishes to strengthen brand identity and cater to eco-conscious customers.

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UAE Paper Packaging Market Report Highlights

Based on grade, the recycled paper segment accounted for the largest market share at over 56.0% in 2024, and is projected to grow at the fastest CAGR of 5.6% over the forecast period.
Based on product type, the corrugated boxes segment held the largest revenue share of more than 42.0% in 2024.
The folding cartons product segment, on the other hand, is anticipated to register the fastest CAGR of 6.0% during the forecast period.
Based on application, the food & beverages segment dominated the market in 2024, contributing over 31.0% of the total revenue.
Based on application, the e-commerce & retail segment is forecasted to grow at the fastest CAGR of 6.0% during the forecast period.