CMI outlines how circular economy investments, recycling capacity, and policy reforms will determine the region's competitiveness in global markets

Cairo, January 2026 — For plastics manufacturers across the Middle East and North Africa (MENA), sustainability has evolved from a corporate responsibility initiative into a business imperative. As export markets introduce stricter packaging standards, recycled content requirements, and carbon regulations, companies are increasingly recognising that competitiveness will depend not only on production capacity but also on their ability to integrate circular economy principles into their operations.

At PLASTEX 2026 – Egypt's Strategic Conference, held from January 9–12 in Cairo, Coherent Market Insights (CMI) participated as the Official Knowledge Partner, presenting its latest research on the MENA Sustainable Plastics Market. The company's insights explored how market demand, government policy, recycling infrastructure, and international trade requirements are collectively reshaping the region's plastics value chain.

As part of the conference, Raj Shah, CEO & Founder of Coherent Market Insights, moderated the Day 2 panel discussion, "Accelerating Demand and Adoption of Recycled Plastics," where industry experts discussed practical approaches to scaling recycled plastics production while improving supply chain resilience.

"Across MENA, the willingness to adopt sustainable plastics is steadily increasing," Shah said. "The next stage of market development will depend on how effectively the industry can strengthen recycling infrastructure and secure a consistent supply of high-quality recycled feedstock. Sustainability commitments alone will not deliver a circular economy unless they are supported by commercially scalable systems."

Sustainable Plastics Market Continues to Gain Momentum

CMI estimates the MENA Sustainable Plastics Market at US$ 3,897.9 million in 2025, with the market expected to expand to US$ 6,692.3 million by 2032, reflecting a CAGR of 8.0% during the forecast period.

The market is being driven by increasing investments in recycling facilities, higher recovery of plastic waste, greater use of sustainable materials across packaging and industrial applications, and stronger policy support encouraging circular manufacturing practices.

Among regional markets, Egypt is expected to register the fastest growth, recording an estimated 10.2% CAGR between 2025 and 2032. The country produces approximately 3.6–5.4 million tonnes of plastic waste each year, while recycled plastic production is estimated at nearly 1.5 million tonnes, demonstrating significant potential for expanding domestic recycling capacity. Much of the country's collection network continues to be supported by the informal waste management sector.

Recycling Capacity Must Keep Pace with Rising Demand

Although demand for recycled plastics continues to grow, CMI's research indicates that supply remains constrained.

Mechanical recycling currently represents less than 10% of global plastic processing, while access to food-grade recycled feedstock remains limited throughout much of the MENA region. Bridging this imbalance will require sustained investments in waste collection, material sorting, advanced recycling technologies, and integrated supply chain development capable of delivering consistent material quality.

Policy Support Accelerates Circular Economy Development

Governments across the region are introducing ambitious initiatives to improve waste management and reduce landfill dependence.

Saudi Arabia's Saudi Investment Recycling Company (SIRC), operating under the Public Investment Fund, has established a long-term objective of achieving 100% landfill diversion by 2035, with approximately 81% of municipal waste targeted for recycling and 19% for waste-to-energy conversion. Through its partnership with the Alliance to End Plastic Waste, the organisation is also advancing efforts aimed at achieving nearly 94% landfill diversion, reinforcing confidence in the region's long-term circular economy strategy.

Export Readiness Becomes a Competitive Advantage

One of the key themes emerging from CMI's research is the growing relationship between sustainability performance and international market access.

With the European Union and other major economies introducing more stringent regulations governing recycled content, packaging sustainability, and carbon emissions, manufacturers that continue relying primarily on virgin plastics may face increasing compliance costs and greater barriers to export.

The report concludes that organisations investing today in recycled materials, circular production models, and recycling infrastructure will be better positioned to meet evolving global standards while strengthening long-term competitiveness.

Throughout PLASTEX 2026, discussions reinforced the importance of collaboration across governments, recyclers, manufacturers, and technology providers. Participants agreed that accelerating investment in recycling infrastructure, strengthening policy implementation, and improving feedstock availability will be critical to supporting the next phase of sustainable plastics growth across the MENA region.

About Coherent Market Insights

Coherent Market Insights serves clients across 32+ countries, supported by 300+ full-time consultants and a domain expert network spanning 24 countries. With a presence in the United States, the United Kingdom, and Japan, the company provides strategic market intelligence and research solutions that help organisations identify emerging opportunities and make informed business decisions in evolving global markets.

For more information, visit www.coherentmarketinsights.com