Amman: Jordan’s packaging industry has established a global footprint with exports reaching 44 international markets while satisfying more than three-quarters of local market requirements, industry officials reported Monday. The packaging, paper, cardboard, and office supplies sector now covers 77.2% of domestic demand and has positioned Saudi Arabia and Iraq as its primary export destinations, accounting for 66% of foreign sales, according to Mohammad Safadi, the sector representative at the Jordan Chamber of Industry.
According to Jordan News Agency, export performance reached JD123 million during the first eleven months of 2024, compared to JD131 million for the same period in 2023. The sector maintains annual production capacity of approximately JD1.14 billion, with value-added components representing 37% of total output. The industry’s contribution to GDP stands at 1.3%, while employment figures demonstrate its significance in the labor market with 12,070 workers, 89% of whom are Jordanian nationals.
The Jordan Industry Index reports that the sector achieved a 0.5% 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 explained. The sector’s integration with other industries is substantial, with packaging components accounting for more than 16% of production costs across the industrial sector, excluding raw materials.
However, 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 specialized technical expertise.