Saudi Arabia Plastic Products Market Research Report (2023-2028)

Market Insights & Analysis: Saudi Arabia Plastic Products Market (2023-28)

The Saudi Arabia Plastic Products Market size was valued at USD 8.3 billion in 2022 and is projected to grow at a CAGR of around 3.2% during the forecast period, i.e., 2023-28. The market is driven primarily by the kingdom's thriving economy, high standard of living, and increased consumer spending. The country’s most ambitious initiative, Saudi Vision 2023, which includes mega infrastructure development projects, are creating the need for plastic materials, ranging from pipes & fittings to insulation & packaging solutions, for various purposes.

Besides, the increased consumer demand for packaged food is another important aspect pushing the demand for innovative & appealing plastic packaging solutions, facilitating a favorable environment for the Saudi Arabia Plastic Products Market to thrive in the coming years. Moreover, with a large regional population, Saudi Arabia's per capita consumption of polymers exceeds 95kg, capturing a significant 61% share of the entire market. This high consumption rate reflects the country's high reliance on plastic products across various sectors.

• According to the General Authority for Statistics, plastic product imports surged 18%, amounting to 456,000 tons in the second quarter of 2022 from 386,000 tons in the same period last year. This rise can be attributed to a 45 percent yearly rise in imports from China, hinting at the substantial plastic consumption and a promising market outlook during 2023-28.

Further, as consumers increasingly adopt smartphones, the need for plastic components & packaging for electronic devices is growing substantially. Another crucial aspect influencing the market dynamics is the presence of numerous local & international companies operating in the kingdom. With their massive investments & expertise, organizations like Sealed Air, Newell Brands Inc., Sonoco Products Company, etc., are fueling innovations while contributing significantly to the expansion of the Saudi Arabia Plastic Products Market.

Saudi Arabia Plastic Products Market Driver

Proliferating Construction & Real-Estate Activities - Saudi Arabia is experiencing a significant transformation in its infrastructure as a part of their Vision 2030. Under this, the kingdom has envisioned diversifying its economy and developing public service sectors, seaports, railway lines, airports, & manufacturing facilities to minimize its economic dependence on oil & gas. For instance:

• Several plans are underway to construct the world's largest airport, King Salman International Airport, in Riyadh. This ambitious project aims to accommodate a remarkable passenger capacity of 185 million, surpassing the combined capacities of London Heathrow & Dubai International Airports.

As such, Saudi Arabia is heavily investing in its construction sector. In fact, it plans to seek around USD 425 billion by 2030 for infrastructure, energy, mining, & other industrial projects, which would require a substantial amount of plastic to make components like hinges, screws, & bigger construction parts for wall covering, electric wiring, waterproofing, flooring, & decoration, among others.

Besides, Polyurethane spray and rigid polystyrene foam have also gained traction in the country owing to their excellent insulation properties. Hence, the emergence of the world's largest construction site across the country, driven by Saudi Vision 2030 and burgeoning real estate activities, presents lucrative prospects for the Saudi Arabia Plastic Products Market through 2028. 

Saudi Arabia Plastic Products Market Growth Opportunity

Steady Rise in the Demand for Biodegradable Plastics - The implementation of new regulations in Saudi Arabia requiring plastic products to be made of approved oxo-biodegradable material cites a promising growth prospect for the plastic products market in the country. The demand for environmentally friendly biodegradable plastics is likely to grow as businesses & consumers seek compliant alternatives. This shift impacts a wide range of plastic products and encourages innovations and the adoption of advanced solutions. By capitalizing on this opportunity, the key players operating in the Saudi Arabia plastic products industry can align with sustainability goals, propel economic growth, and contribute to a greener future.

Saudi Arabia Plastic Products Market (2023-28): Segmentation Analysis

The Saudi Arabia Plastic Products Market study from MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment & includes predictions for the period 2023–28. Based on the analysis, the market has been further classified as:

Based on Technology:

• Injection Molding
• Extrusion Molding
• Blow Molding

Among all, the Extrusion Molding Technology holds the most prominent share of the Saudi Arabia Plastic Products Market. It owes to its diverse range of applications across various industries. Extrusion molding provides versatility in manufacturing plastic products by accommodating an extensive range of materials, including multiple types of thermoplastics, allowing for the production of different product types, shapes, & sizes. In addition, its cost-effective nature that allows for high-volume production with efficient material usage & minimized waste is another aspect contributing to its mounting demand for manufacturing plastic products like pipes, profiles, & films, etc., in a single operation.

Growing population levels, increased industrial development, and mounting construction activities across Saudi Arabia are all instigating the need for large-scale production of plastic products through extrusion molding in various sectors, such as construction, packaging, & agriculture. Furthermore, being one of the largest producers of petrochemicals & polymers globally, the kingdom has locally produced resin, such as polyethylene & polypropylene, available at competitive prices, which ensures a steady availability of raw materials for extrusion molding processes. Hence, the country's extensive use of extrusion molding is spurring growth in the plastic products market.

Based on End-User:

• Automotive & Transportation
• Electrical & Electronics
• Medical
• Construction

Here, the automotive & transportation sector is likely to contribute considerably to the growth of the plastic products market during 2023-28, as it is one of the most prominent consumers of plastic products due to their high usage in various components & parts, such as thermal insulators, noise & vibration dampeners, seat cushions, etc.

The burgeoning adoption of polymers, which are highly durable, flexible, & easily moldable, in the automotive industry to enhance the overall efficiency of vehicles and the life of vehicle components is driving the market. Additionally, the growing interest of the young generation in luxury cars, coupled with the mounting prevalence of Electric Vehicles (EVs) to curb carbon emissions, are other crucial factors spurring growth in the Saudi Arabia Plastic Products Market within the automotive & transportation sector.

Saudi Arabia Plastic Products Industry Recent Development:

• On 21 June 2023, Berry Global, a leading packaging manufacturer, unveiled its latest spray-through overcap made using 50% recycled content to support customers in achieving their sustainability goals with recycled content.

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

1. Saudi Arabia Plastic Products Market report provides a detailed and thorough analysis of market size, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics and make informed decisions.
2. This report also highlights current market trends and future projections, allowing businesses to identify emerging opportunities and potential challenges. By understanding market forecasts, companies can align their strategies and stay ahead of the competition.
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4. The report would help in understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks and optimize their operations.