EGYPT – The rising cost of packaging has hit Egyptian exporters hard this season, with many citing increased raw material prices and production expenses as major contributors to the surge.
Egyptian exporters of various crops are facing a challenging season, as packaging costs have skyrocketed by approximately 45% compared to the previous year.
This significant increase is attributed to the escalating prices of raw materials and production expenses, as noted by Mohamed Ali, co-founder of FreshDeal, a packaging manufacturer based in Egypt.
“Many exporters are feeling the pinch due to the rising packaging costs, which are being passed down through the supply chain,” Ali explained.
He highlighted that FreshDeal is taking steps to manage these challenges by optimizing their supply chain, enhancing production efficiency, and exploring more cost-effective and sustainable packaging options. Despite these efforts, the impact of inflation remains a pressing concern.
In response to the rising costs and growing environmental awareness, Egyptian exporters are increasingly adopting sustainable packaging solutions.
FreshDeal, for instance, has observed a marked shift towards eco-friendly materials, which are becoming a strategic choice for many in the industry.
“Our customers are showing a growing preference for materials that minimize environmental impact, such as FSC®-certified paper and eco-friendly inks,” Ali stated.
This trend is particularly evident in the grape industry, where FreshDeal has focused its efforts. The company has produced over 5 million paper bags specifically designed for Egyptian grape exporters, using biodegradable paper and environmentally friendly inks.
These bags not only meet the stringent environmental standards set by the European Union but also cater to the growing demand for sustainable packaging in these markets.
The shift towards sustainable packaging is not merely a response to consumer demand but also a necessity for meeting international standards.
The European Union, one of the primary markets for Egyptian grapes, has stringent regulations regarding packaging materials, particularly concerning their environmental impact. By aligning with these requirements, Egyptian exporters can continue to access these lucrative markets.
“Our efforts do not only help Egyptian exporters meet stringent EU standards but also reinforce our commitment to reducing environmental impact and promoting sustainable practices in the packaging industry,” Ali added.
FreshDeal has successfully collaborated with major European companies to supply their sustainable grape bags during this season, further solidifying their position in the market.
As Egyptian exporters navigate the rising costs and shifting demands, the focus on sustainability is likely to grow. Companies like FreshDeal are at the forefront of this transition, balancing the need to manage costs with the push towards environmentally friendly solutions.
The combination of these efforts will be crucial for the industry’s ability to thrive in both local and international markets.
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