Tetra Pak Recycling Facility (Image Courtesy: Tetra Pak)
Circular Economy

Building Circularity: How Tetra Pak Arabia Area is Shaping the Future of Food & Beverage Industry in the Gulf

By: Marcelo Piva, Regional Sustainability Director for the Middle East and Africa, Tetra Pak

SME News Service

In a major step towards advancing environmental sustainability and promoting a circular economy, the UAE Ministry of Climate Change and Environment recently partnered with Tadweer to work on a pilot for collection, sorting and recycling of post-consumer goods, in line with the framework of introducing Extended Producer Responsibility (EPR) regulations in the country[1].

This initiative, set to be fully implemented by 2027, holds manufacturers accountable for the entire lifecycle of their products, from design to disposal, encouraging more sustainable production practices. It is a clear call to action for industries to shift from linear to circular economic models.

While for many companies this marks the start of a significant transition, for Tetra Pak Arabia Area, a global leader in food processing and packaging, it is a natural next step in a journey already well underway. The company emerges not only as a supplier but as a strategic partner, driving circular change across the region's food and beverage sector.

Beyond compliance: A strategy for innovation and value creation in the recycling value chain

Sustainability has long been viewed by Gulf governments as a regulatory compliance requirement. Tetra Pak Arabia Area is shifting this perspective by demonstrating how sustainability initiatives can also unlock business growth.

Through strategic investments in local recycling infrastructure, such as its partnerships and joint investments with strategic recycling companies in Dubai and Riyadh[2], innovations in packaging materials like fiber[MP1] [AF2] -derived barrier layers[3], paper-based caps[4], and partnerships with policy makers, industry leaders and local waste management organizations, the company is turning compliance into competitive advantage.

The paper-based barrier replaces traditional aluminum foil with a renewable that protects against oxygen, light, and moisture. This increases the carton’s renewable content [MP3] [AF4] to around 80% while cutting its carbon footprint by one-third.

Paper-based caps replace plastic closures with recyclable, renewable materials, offering a major step toward fully sustainable packaging that meets rising consumer demand. These innovations increase recyclability of carton packages, as simplifying the structure and increasing fiber content makes the recycling process more efficient cost-effective.

With 70% of packaging made from FSC-certified (Forest Stewardship Council) paperboard and a strong push toward renewable materials, Tetra Pak Arabia Area is actively reducing reliance on fossil fuels. Its aseptic technology not only extends shelf life, thereby reducing food waste, preserving food quality from the source to the consumer.

Turning waste into opportunity

Driving circular solutions through recyclable packaging, renewable materials, and expanded recycling is at the heart of Tetra Pak’s ambition in Arabia[5]. The company, together with its recycling partners, has investment over €3 million in state-of-the-art recycling facilities[6] for carton packages in Dubai and Riyadh.

Annually, these plants have the capacity to process up to 10,000 tonnes of post-consumer cartons each, transforming used carton packages [MP5] into valuable new products such as cardboard boxes, transportation pallets, furniture, and others.

These facilities  are enablers for the creation of sustainable value chains, helping addressing key local recycling capabilities barriers and supporting the development of collection, sorting and processing initiatives.

Efficient production, smarter resource use

While packaging often receives the most attention, improvements in processing efficiency, such as reducing energy and water use, are equally vital in cutting environmental impact. The company’s food processing solutions help manufacturers optimize their use of energy and water, both scarce and vital resources in the Middle East.

A prime example is its long-standing partnership with SADAFCO[7] in Saudi Arabia, which has delivered tangible sustainability gains, from diverting from landfills all the  carton packaging waste generated at production to recycling 10 million liters of water annually at its Jeddah facility.

Together, the companies have also launched a school outreach program across Riyadh and Jeddah, engaging thousands of Grade 6 students in carton recycling and environmental awareness[8], advancing both industry innovation and public education in line with Saudi Vision 2030[9].

Policy alignment and future planning

As EPR policies evolve rapidly, many manufacturing companies face challenges in meeting new compliance requirements. Tetra Pak Arabia Area offers a proactive advantage by integrating solutions across packaging, processing, such as renewable cartons, energy-efficient equipment, and recycling partnerships, enabling its customers (brand owners) to meet emerging regulations and lead the shift toward circularity.

By investing in renewable materials, advanced recycling infrastructure, and efficient processing systems, Tetra Pak Arabia Area supports a more resilient food and beverage sector. These efforts align with national sustainability targets, such as waste reduction and increased recycling rates outlined in the UAE Circular Economy Policy 2021–2031[10].

Enabling the UAE's circular ambitions

Our leadership supports the UAE’s Circular Economy Policy 2021–2031, which aims to reduce waste, increase recycling rates, and promote sustainable production and consumption across key sectors including manufacturing and food packaging.

Early investments in local recycling infrastructure, renewable materials, and low-impact processing technologies reflect a long-term commitment to sustainability across the region.

As a founding and board member of the Circular Packaging Association (CPA), Tetra Pak has been directly supporting the transformation in the waste management regulatory landscape in the country in close dialogues with policy makers and sharing know-how, Global best practices and engaging the packaging industry.

R&D investments, such as paper-based caps and fiber-based barrier layers, directly support regulatory shifts toward low-carbon, fully recyclable packaging. These efforts show that Tetra Pak Arabia Area is not just contributing to the circular economy but also actively building it.

Delivering future outcomes

Achieving circularity in the packaging sector requires coordinated solutions across sourcing, production, and recovery, a principle outlined in frameworks such as the UAE Circular Economy Policy 2031. Tetra Pak is applying this model locally through FSC-certified paperboard in its cartons, renewable materials, development of recycling infrastructure, and efficient processing technologies.

The company’s goal of reaching net-zero emissions in its operations by 2030, and across its full value chain by 2050, is both a promise and a roadmap for the future of food and beverage production in the Middle East.

As EPR frameworks gain traction across the region, food and beverage manufacturers will need partners equipped with practical solutions and local infrastructure. Through its investments in recycling capacity, policy engagement, and end-to-end packaging systems, Tetra Pak Arabia Area is enabling this transition on the ground.

With policies like EPR reshaping the industry, the Gulf’s food and beverage sector has an opportunity to lead the global shift to circularity and Tetra Pak Arabia Area is helping turn that vision into reality.

References:

[1] Gulf News, “UAE launches first EPR pilot to tackle electronic, packaging waste

[2] Tetra Pak Arabia, “Global knowledge, local presence

[3] Tetra Pak, “Tetra Pak chooses paper-based over polymer-based barrier

[4] Tetra Pak, “Sealing the future with a new paper-based cap

[5] Tetra Pak, “Circular economy

[6] Tetra Pak, “Tetra Pak invests in four new recycling facilities, enabling global carton packaging recycling to exceed fifty billion a year

[7] Dairy News Today, “Tetra Pak and SADAFCO Forge Ahead with Sustainable Innovations in Saudi's Food Sector

[8] Jane Goodall, “Grade 6 Students Lead the Charge in Plastic Recycling at QAS

[9] Vision 2030, “Saudi Green Initiative

[10] UAE Legislation, “The UAE Circular Economy Policy 2021-2031

 [MP1]Check please if officially we call it fiber-based or paper-based

 [AF2]Fiber based

 [MP3] Renewable content or fiber/ paper content? I think it is paper content. Please check from official comms pieces

 [AF4] Renewable is correct - https://www.tetrapak.com/about-tetra-pak/news-and-events/newsarchive/industry-first-fibre-based-barrier

 [MP5] Please check how we are calling the packages throughout the document to secure we always use the same (food packages, carton packages, etc)

From Compliance to Competitive Advantage: How Sustainable Manufacturing is Reshaping the Gulf’s Industrial Future

Forests, Greening, and Afforestation: How Trees Help Avert Disasters and Stabilise Our Climate

Empowering Youth: UAE’s Strategic Pathway to Achieving the SDGs

Under the Same Stars: How Rural Villages Are Turning Astro-Tourism into a Sustainable Future

Industrialisation and the Environment: Striking the Balance Between Progress and Preservation