UAE Eco-Packaging Demand Surges 30% as Plastic Ban Expands

Businesses across the UAE are racing to replace plastic packaging, and the results are better than anyone predicted.

Demand for eco-friendly alternatives like cassava-based bags and plant fiber containers is growing between 25 and 30 percent each year. Companies making the switch aren't just complying with new regulations. They're cutting waste by a quarter and slashing their packaging carbon footprint by up to 40 percent.

The momentum is real and measurable. Since 2022, businesses using sustainable alternatives have helped avoid nearly 300 tonnes of single-use plastic waste and prevented more than 2,500 tonnes of carbon emissions. Over three million biodegradable bags have replaced traditional plastic ones.

Dubai-based Avani Eco Middle East is at the center of this transformation. The company produces 100 percent biodegradable products from renewable materials like cassava, corn, and sugarcane. Their upgraded facility in Dubai Science Park now serves more than 400 customers, from luxury hotels to catering companies.

Peter Avram, CEO of Avani Eco Middle East, says the data reveals something surprising. When businesses commit to the transition, they don't just swap plastic for plant-based materials one-to-one. They rethink what they actually need, optimize formats, and end up using fewer single-use items overall.

The timing couldn't be more critical. Phase Two of the UAE's single-use plastics ban takes effect on January 1, 2026, covering cups, lids, cutlery, plates, straws, and food containers. Businesses are preparing now, and the early movers are seeing the biggest benefits.

Government support made the difference. In 2022, the Mohammed Bin Rashid Innovation Fund provided Avani with a 2.5 million dirham government-backed guarantee. That support helped the company localize manufacturing in the UAE, invest in research, and expand their product range to meet growing demand.

Fatima Al Naqbi from the Ministry of Finance says the results prove that targeted support for innovative companies creates real environmental and economic impact. The company's manufacturing capacity has more than doubled since 2022, and localizing production in Dubai has cut the carbon footprint of some product lines by around 18 percent.

The Ripple Effect

The transformation is spreading across industries. Luxury hotels are rethinking their entire supply chains. Fine-dining restaurants are discovering they can elevate the guest experience while reducing waste. Retailers are finding that customers appreciate the shift to sustainable packaging.

Each business that makes the change creates pressure and opportunity for others to follow. Supply chains are adapting, making sustainable options more available and affordable. What started as regulatory compliance is becoming a competitive advantage.

The data shows that when given clear direction and practical alternatives, businesses will make choices that benefit both their bottom line and the planet.