Saudi Arabia Plastic Packaging Market Research Report: Forecast (2024-2030)

Market Insights & Analysis: Saudi Arabia Plastic Packaging Market Keyword Market (2024-30):

The Saudi Arabia Plastic Packaging Market is estimated to grow at a CAGR of around 5.3% during the forecast period, i.e., 2024-30. The industry growth is attributed to the rising consumption of packaged food, the thriving pharmaceutical sector, and surging demand for halal cosmetics. The country has observed a surge in expatriates, propelled by numerous job opportunities created through the Vision 2030 initiative. According to the World Migration Report 2022, Saudi Arabia has attracted approximately 13.5 million expatriate workers. This influx of expatriates has led to an uptick in the consumption of ready-to-eat foods, including microwaveable meals, pre-packaged salads, snacks, and sandwiches. Consequently, the escalated consumption of packaged foods has contributed to the growing demand within the Plastic Packaging Market in Saudi Arabia.

Furthermore, the thriving pharmaceutical sector is bolstering the market, as the country is witnessing increasing interest from pharmaceutical giants like Novartis, Pfizer, Sanofi, and Merck. For instance:

• In 2023, CDMO National Resilience announced a joint venture with Lifera to develop biopharma manufacturing capacity in Riyadh.

This attraction is primarily driven by the country's expansive & growing population, robust healthcare infrastructure, and the government's committed initiatives to advance the sector, aligning with its Vision 2030 plan. Thus, increasing expansion of pharmaceutical manufacturers to the country is estimated to generate the demand for plastic packaging solutions in the projection period to guarantee the safety, reliability, and effectiveness of pharma products.

Saudi Arabia Plastic Packaging Market Driver:

Increasing Investment in the Food & Beverage Industry to Accelerate the Market – Prominent food and beverage companies, including PepsiCo & Nestle, are making substantial investments to augment their production capacities. Hence, this rising investment by major companies in the expansion of production capacity has propelled the demand for packaging, further driving the Saudi Arabia Plastic Packaging Market. The proliferation of production facilities by these key players has a direct impact on the industry, driving a greater requirement for plastic packaging solutions to accommodate the growing output and ensure the secure & efficient delivery of their products to the market. Furthermore, the government has been consistently investing in the food and beverage industry to enhance local production capacities. For instance:

• In 2023, the Saudi Authority for Industrial Cities invested USD61.8 million to expand the production capacity of chocolate, yogurt, etc., in the Kingdom.

With the expansion of the food and beverage industry, there has been an upsurge in the production volume of various products. Hence, this higher output translated to an elevated demand for packaging materials and plastic packaging, known for its versatility & cost-effectiveness.

Saudi Arabia Plastic Packaging Market Opportunity:

Surging Adoption of Halal Cosmetics to Bridge Future Growth – The primary factor driving the adoption of halal cosmetics is the adherence to Islamic principles. Consumers in Saudi Arabia seek products that comply with Islamic Law, and halal cosmetics ensure that they are free from prohibited ingredients. Moreover, increased awareness among consumers about the ingredients in cosmetics has led to a greater demand for transparency, resulting in higher demand for halal cosmetics across the country and fueling the need for plastic packaging solutions from cosmetic distributors & manufacturers.

Also, the increasing endorsement of halal products sets the stage for a favorable environment to expand the halal cosmetics industry in Saudi Arabia in the coming years. As a result, this expansion is anticipated to positively influence the future size of the Saudi Arabia Plastic Packaging Market.

Saudi Arabia Plastic Packaging Market Challenge:

Evolving Regulatory Changes & Compliances Would Negatively Impact the Market – The Plastic Packaging Industry is confronted with challenges arising from regulatory pressures, characterized by the continuous evolution of rules and guidelines concerning plastic usage and its environmental impact. Governments & regulatory bodies in Saudi Arabia are increasingly addressing concerns related to plastic waste & environmental sustainability. The dynamic nature of regulatory changes necessitates constant adaptation by industry players. As governments introduce new laws or amend existing ones to address environmental concerns, plastic packaging manufacturers must stay abreast of these developments.

Furthermore, compliance with evolving regulations may impose additional costs on plastic packaging manufacturers. Implementing environmentally friendly practices, incorporating recyclable materials, and establishing efficient waste management systems all come with associated expenses. As a result, companies may need to allocate resources for research & development to innovate sustainable packaging solutions that meet regulatory standards while remaining economically viable.

Saudi Arabia Plastic Packaging Market Trend:

Launch of Sustainable Packaging Solutions – The rise of sustainable packaging solutions among plastic packaging companies in Saudi Arabia mirrors a broader shift towards environmental responsibility. This trend aligns with increasing global and local awareness of plastic pollution and other environmental issues. Additionally, changing consumer preferences in the country favor eco-friendly products, leading end-user industries to seek sustainable packaging solutions. This has prompted manufacturers such as Sabic and Napco to introduce more environmentally friendly plastic packaging options. For instance:

• In 2023, SABIC introduced a new TF-BOPE film for frozen food packaging applications. The new solution enables brand owners & retailers to minimize packaging material consumption & environmental impact.

Moreover, governments and regulatory bodies are imposing stricter regulations on plastic usage and waste management, further resulting in the introduction of sustainable packaging solutions to comply with evolving environmental regulations.

Saudi Arabia Plastic Packaging Market (2024-30): Segmentation Analysis

The Saudi Arabia Plastic Packaging Market study by MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment & includes predictions for the period 2024–2030 at the country level. In accordance to the analysis, the market has been further classified as:

Based on Packaging Types:

• Rigid Plastic Packaging Products
• Flexible Plastic Packaging Products

Rigid Plastic Packaging Solutions are gaining demand due to factors like surging requirements for bottled water, development of the e-commerce sector, and many more. Tourism plays a vital role in Saudi Arabia's economic development, encompassing religious & non-religious activities with substantial potential for growth. Additionally, the increasing number of both local & international tourists visiting major tourist destinations is expected to drive up the demand for treated water, especially bottled water, in Saudi Arabia. Furthermore, the growth of the tourism sector is leading to a proliferation of food service establishments, such as hotels & restaurants across the country.

Besides, the increasing efforts of the government to attract foreign investments, particularly in the food and beverage industry, are facilitating the expansion of manufacturing facilities. As production grows, there is expected to be a concurrent rise in the demand for packaging solutions, further encouraging the utilization of rigid plastics during 2024-2030.

Based on End User:

• Food & Beverage
• Healthcare & Pharmaceutical
• Cosmetics & Personal Care
• Chemical
• Others (Textiles, Agriculture, etc.)

The Food & Beverage sector has secured a significant share and is poised to continue dominating the market in the coming years. The Saudi government's initiatives, including Vision 2030 and the National Industrial Strategy, play a pivotal role in promoting & supporting the growth of the food & beverage sector. These initiatives aim to diversify the economy and enhance self-sufficiency in food production. This resulted in the demand for plastic packaging solutions from the booming food & beverage sector. Furthermore, the country is witnessing the growing expansion of food factories due to heightened consumer demand for convenience, diversification of the economy, and foreign direct investment. For instance:

• In 2023, Saudi Arabia approved licenses for 53 new factories with a total investment of more than USD 5 billion.

Thus, an escalating number of food processing plants would create augmented demand for plastic packaging solutions for preserving the quality & extending the shelf life of various food & beverage items.

Saudi Arabia Plastic Packaging Industry Recent Development:

• 2023: Arabian Plastic Industrial Co., secured USD 29 million of funding from the Saudi Investment Bank for new plastics factory in Riyadh.

Gain a Competitive Edge with Our Saudi Arabia Plastic Packaging Market Report

• Saudi Arabia Plastic Packaging Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
• This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
• Saudi Arabia Plastic Packaging Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.