The GCC market for lubricant packaging, which stood at $162.7 million in 2016, is likely to grow at a CAGR of 3.30 per cent until 2024, with its value shooting up to $210.4 million, a report said.

The increasing research and development activities in lubricant packaging is prompting key players to adopt novel manufacturing technologies, added the latest research by Transparency Market Research (TMR), a global market intelligence company.

Product innovations and advancements in current offerings are also expected to attract the attention of these participants in the years to come, notes the research study. Saudi Arabia and the UAE are the main regions where the GCC lubricant packaging market is concentrated. However, owing to the advancement in technology, influencing the production output, manufacturers are considering expansion in the neighbouring regions of Europe and Africa.

The automotive sector has surfaced as the key end user of lubricant packaging and is anticipated to gain maximum incremental opportunity in terms of market revenue over the next few years. However, the chemical industry is projected to offer the most promising growth opportunities to market players in the years to come.

The report analyzes the GCC lubricant market on various parameters, such as the type of packaging, type of material, and the type of lubricants. In terms of the type of packaging, the demand pail is higher than others and the scenario is likely to remain so over the forthcoming years. Flexible lubricant packaging, such as bag-in-box and stand-up pouches, are also anticipated to witness a healthy rise in the near future. Among lubricants, engine oil has been registering a greater demand for lubricant packaging compared to others, thanks to its increasing demand in the automotive sector. Analysts expect this segment to remain on the top throughout the forecast period.

In terms of materials, PET packaging has been leading the global market since the past few years and is expected to remain doing so over the forecast period, thanks to the growing preference for PET over PP and PVC among consumers. HDPE packaging is also anticipated to experience a considerable rise in its demand over the next few years due to the growing awareness among consumers pertaining to its multiple usages in various industrial and consumer applications, states the research study.

Expansion in non-oil industries to boost GCC lubricant packaging market

"The innovation in technology has led to the growth of lubricant packaging market in the GCC," said the author of the research study.

 The rising number of government initiatives and the increased spending on non-oil industries is propelling this market substantially. The initiatives taken by the governments in the GCC countries have made the non-oil industries a significant source of income, leading to a considerable expansion in this industry, which is likely to reflect positively on the lubricant packaging market in the GCC over the forecast period.

Although the market looks thriving at present, the increasing implementation of stringent environmental rules and regulations may hamper the growth of this market to some extent in the years to come, states the research report. – TradeArabia News Service