Exports of Jordan's packaging industry reach 44 markets

AMMAN — Exports of the Kingdom's packaging industry reach 44 international markets, and sector products cover more than three-quarters of local market requirements, a stakeholder said on Monday.

The packaging, paper, cardboard, and office supplies sector now covers 77.2 per cent of domestic demand, and has positioned Saudi Arabia and Iraq as its primary export destinations, accounting for 66 per cent of foreign sales, according to Mohammad Safadi, the sector representative at the Jordan Chamber of Industry.

"Export performance reached JD123 million during the first 11 months of 2024, compared to JD131 million for the same period in 2023," Safadi told the Jordan News Agency, Petra.

The sector maintains annual production capacity of approximately JD1.14 billion, with value-added components representing 37 per cent of the total output.

The industry's contribution to GDP stands at 1.3 per cent, while employment figures demonstrate its significance in the labour market with 12,070 workers, 89 per cent of whom are Jordanians.

According to the Jordan Industry Index, the sector achieved a 0.5 per cent growth rate during the third quarter of 2024 compared to the same period in 2023 marking its "strongest" performance in five years.

The sector has experienced significant expansion over two decades, with operational facilities increasing to 812 establishments nationwide.

"Our products not only protect and transport goods but serve as the critical link between producers and consumers, directly influencing purchasing decisions through enhanced product presentation," Safadi noted.

The sector's integration with other industries is substantial, with packaging components accounting for more than 16 per cent of production costs across the industrial sector, excluding raw materials.

The industry faces several challenges, including escalating energy and raw material costs, intensifying competition from lower-priced imports, and non-compliance issues with Jordanian technical standards, particularly for food-contact materials.

Additional obstacles include underdeveloped marketing strategies for non-traditional export markets, inconsistent implementation of Arab trade agreements by partner countries, and persistent shortages of specialised technical expertise.