PETpla.net Insider 10 / 2016

LABELLING 58 PET planet Insider Vol. 17 No. 10/16 www.petpla.net Change in the Gulf region beverage packaging market and the replacement of aluminium-sealed water cups Labels for a changing market ENPI Group, which is based in Dubai, operates from two primary locations: one each in Sharjah and in the Kingdom of Saudi Arabia (KSA). It supplies markets in the Middle East and Africa with self-adhesive labels, wraparound roll-form and cut labels, shrink sleeves, and aluminium pre-cut lids and rolls. Its products are used in the cosmetics, food and bev- erage, pharma, FMCG and airline segments. The Sharjah facility is equipped with a digi- tal line and eight narrow-web Flexo lines, while the KSA plant has a selection of Flexo and Gravure lines. The business mix was, until recently, made up of 50% self-adhe- sive labels and 23% wrap-around, shrink sleeve and aluminium prod- ucts for beverage packaging. The remaining 27% came from other segments. However, the last 12 to 18 months have seen several sur- prising changes. In 2015, the bever- age packaging segment’s business share jumped from 23% to 31%. This coincided with a significant slide in aluminium’s market share; labels in other materials largely replaced aluminium, although the market for wraparound and shrink sleeves also increased. The past year has seen labels start to play a key role in the pack- aging of beverages in ENPI Group’s markets, with consequent impact on product presentation and marketing. For example, mineral water bottles had, previously, appeared in only two colours: red or blue. As bever- age companies seek to target the full spectrum of markets and segments, bottles are now appearing in many colours. Child consumers represent an increasingly important market. In the past, the kids’ segment was essentially confined to chocolates and biscuits; beverage companies in the Middle East and Africa are now focused on beverages. Companies are manufacturing bottles for water, soft drinks and juices; labels and labelling play a crucial role in devel- oping the market. Disappearance of aluminium-sealed water cups An example of the kind of dra- matic change that has taken place in the market in the Gulf region is the virtual disappearance of 200ml PET water cups sealed with aluminium foil. The introduction of 200ml PET bottles saw the role of foil decline to almost zero. Since their arrival, the market share of 200, 250 and 500ml PET water bottles, available at low prices and with attractive values for children, has grown significantly. As well as drinks and juices, the children’s market for water is also growing and is expected to continue to do so. The PET cup with printed foil was not child-friendly; it was an injury hazard while tearing open the foil, which meant that they had to be kept away from children, for safety. PET bottles are not subject to those issues. Growing children’s market The ability to supply bottles in small stock keeping units (SKUs) has made the market more conveni- ent for all segments of clients. The cost of packaging is lower, and they are also easier to transport. These advantageous features have made