Plastic Ban Fuels Eco Packaging Growth

As businesses in the UAE adapt to stricter rules around single-use plastics, many are quietly rethinking how they package and deliver products. This shift is becoming increasingly visible in the growing demand for eco-friendly packaging solutions offered by Avani Eco Middle East.

According to the Mohammed Bin Rashid Innovation Fund, the company - part of its Guarantee Scheme - is seeing demand rise by around 25 to 30 per cent each year. The trend reflects how businesses, including many SMEs, are responding to the gradual restrictions on single-use plastics introduced across the country.

For many companies, the transition is not just about compliance. It is also about finding practical alternatives that can reduce waste while still meeting operational needs.

Fatima Al Naqbi, Acting Assistant Undersecretary for the Support Services Sector at the Ministry of Finance and the Ministry’s representative at MBRIF, said the company’s growth highlights how targeted support for innovative businesses can create both environmental and economic value.

Through the Guarantee Scheme, MBRIF supported the expansion of Avani Eco Middle East’s operations at a time when the UAE market was beginning to move away from traditional plastic products.

Al Naqbi noted that the company’s data reflects how innovation, regulation, and environmental responsibility can work together to reduce waste, lower emissions, and support the development of a circular economy.

The pace of change has accelerated in recent years. Avani’s internal data shows that demand picked up significantly after 2023, when clearer timelines around the UAE’s plastics regulations were introduced and major buyers began committing to compliance across their supply chains.

For businesses that have shifted from conventional plastic to fibre and plant-based packaging, the results have been measurable. Some companies reported reducing their use of single-use materials by up to 25 percent. At the same time, packaging-related carbon emissions have dropped by as much as 40 per cent.

This shift also comes as the UAE moves forward with the next stage of its nationwide plastics policy. Phase Two of the single-use plastics ban came into effect on 1 January 2026, expanding restrictions to products such as cups, lids, cutlery, plates, straws, spoons, and food containers.

Based on audited sales reports and life-cycle assessments of its products, Avani Eco Middle East found that customers who replaced conventional plastic items with its certified alternatives reduced single-use product consumption by 15 to 25 percent. Carbon emissions linked to packaging also fell by roughly 30 to 40 percent.

Another noticeable change has been in bag usage. Businesses that switched from traditional plastic bags to Avani’s biodegradable options reduced overall bag consumption by about 30 to 40 percent.

Since 2022, the company estimates that its customers have helped avoid nearly 300 tonnes of single-use plastic waste and prevented more than 2,500 tonnes of carbon emissions. Over the same period, more than three million biodegradable bags have replaced traditional plastic bags.

For Avani Eco Middle East, the transition is not only about replacing materials.

Peter Avram, CEO of the company, said many businesses use the shift as an opportunity to reassess their packaging needs altogether.

According to Avram, companies that commit to the transition often go beyond simply replacing plastic with another material. Instead, they redesign packaging formats and reduce unnecessary items, which ultimately lowers both waste and their carbon footprint.

Support from MBRIF has played a role in enabling this expansion. In 2022, the fund - operated by Emirates Development Bank - provided Avani Eco Middle East with a government-backed guarantee of AED 2.5 million under its Guarantee Scheme.

The funding helped the company localise manufacturing in the UAE, invest in research and development, expand its product range, and strengthen its supply chain to serve a growing number of corporate and SME clients.

With the second phase of the UAE’s plastics restrictions now in place, demand for plant-based and recyclable packaging is expected to continue rising. At the same time, businesses are likely to face increasing expectations to demonstrate the real environmental impact of the materials they use.