Saudi Arabia Packaging Industry - Growth, Trends, and Forecast (2022 - 2030)
Market Overview
The packaging industry in Saudi Arabia also referred to as the Saudi Arabia packaging market is expected to register a CAGR of 2.2% over the forecast period 2019-2024. Packaging, especially plastic, has changed the ways in which packaging industry functioned. Packaging solutions that are lightweight, durable and comfortable to the users are some of the factors, which have augmented the use of plastics as a packaging material across the world.
- The moderately growing market is primarily influenced by changing demographics and factors such as urbanization. It is influenced by changing consumer patterns and habits. The changes related to income patterns and the respective disposable income has influenced the demands of the packaging material for different industries.
- With the urbanization and growth of industries in Saudi Arabia, the packaging industry has gained a significant boost in the demand levels. Presence of Raw material has also been a critical demand influencer. With major revenue generated from the oil and gas sector, Saudi Arabia is planning to develop other industries to limit the dependency in Oil and Gas revenues and diversify its economy.
Scope of the Report
Paper is widely used because it is low cost, holds its shape, and is easily decorated. Paper and board are usually measured by weight or calliper. Commercially available glass is made from silica, sodium carbonate and calcium carbonate. The metals used in packaging are predominantly tin-plated or aluminum and are used to make food and drink cans, aerosol cans, tubes, drums, and slip or hinged lid DrumsDrumsboxes for gift sets and selections of confectionery or biscuits. All packs are recyclable.
Key Market Trends
Rigid Packaging Material Paper & Paperboard is Expected to Hold a Significant Market Share
- With the introduction of government initiatives in Saudi Arabia proposing a plan to limit the usage of plastic, paper and paperboard are considered as the next best alternative due to its recyclable properties. The harm that this material causes to the environment is less compared to the plastic packaging and has been established and backed by multiple research reports.
- Economy diversification policies have also expedited the foreign investment. One Window solution for business setup has also been a positive impact on the market. Further, with the already existing food and beverage products using paper and paperboard for different levels of packaging, it becomes easier to gain acceptance from the current set of consumers. Due to the already existing products with paper packaging, it is expected to replace plastic packaging in the future.
- Plastic packaging solutions are currently being used across various industries such as manufacturing, retail, and healthcare. Plastic packaging has gained significant traction in the healthcare industry due to its high barrier properties, long shelf-life, and durability. The demand for plastic packaging solutions is estimated to continue to grow throughout the forecast period.
Rapid Urbanization and Augmenting Policies Prompts Retail to Experience Significant Market Growth
- To reduce the dependence on the revenues from the Oil and Gas sector, the government is focussing on developments of other industries in order to cater development as well as generate a substantial amount of revenues from other sectors in order to safeguard themselves from the risk that pertains due to the non-renewable nature of fossil fuels.
- The government of Saudi Arabia has aimed towards having a more inclusive role for Saudi nationals through Saudization reforms. In favor of this initiative, the Saudi Arabia government announced the initiative through which it would nationalize 12 economic activities including retailing. Over 40 separate types of retail professions were restricted to Saudi nationals for employment in three phases beginning from September 2018 to January 2019. These include apparel and footwear specialist retailers, homewares and home furnishing stores, electronics and appliance specialist retailers, and jewelry and watch specialist, retailers.
- While the immediate effect of economic restructuring would have resulted in an economic slowdown, recent initiatives are being taken by the government as a part of Saudi Vision 2030, which offers a higher long-term outlook. With foreign direct investments increasing in Saudi Arabia, the retail sector is expected to gain a substantial boost.
Competitive Landscape
The packaging industry in Saudi Arabia consists of several regional players as well as international players with their significant presence in Saudi Arabia region. Due to the huge number of competitors, the market is fragmented with no player existing with significant market share. Further, packaging solutions demand better control on value chain for competitive pricing and one point solution offered for strategic advantage. With the amendments passed to ban plastic the competition is projected to decrease due to the adverse effects on the manufacturers producing plastic packaging.
- May 2019 - Amcor Limited and Bemis Company, Inc. announced that regulatory clearance has been received from the US Department of Justice in relation to the combination of the two companies. A condition of this approval is the previously announced sale of certain Amcor assets located in the US to Tekni-Plex, Inc.
- February 2019 - Amcor Limited launched Genesis, a new in-store recyclable laminate solution. Targeting at a wide range of segments, including fresh fruits and vegetables, frozen food, dried fruits, nuts, confectionery, chilled goods, and pet food. The product is adaptable to a variety of packaging types and is appropriate for specific medical, home, and personal care markets.
- February 2019 - Gulf Printing and Packaging is paving the path for future growth as they are looking for scope in the food packaging market and they are planning to have further expansion in the future.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- Report customization as per the client's requirements
- 3 months of analyst support
The packaging industry in Saudi Arabia also referred to as the Saudi Arabia packaging market is expected to register a CAGR of 2.2% over the forecast period 2019-2024. Packaging, especially plastic, has changed the ways in which packaging industry functioned. Packaging solutions that are lightweight, durable and comfortable to the users are some of the factors, which have augmented the use of plastics as a packaging material across the world.
- The moderately growing market is primarily influenced by changing demographics and factors such as urbanization. It is influenced by changing consumer patterns and habits. The changes related to income patterns and the respective disposable income has influenced the demands of the packaging material for different industries.
- With the urbanization and growth of industries in Saudi Arabia, the packaging industry has gained a significant boost in the demand levels. Presence of Raw material has also been a critical demand influencer. With major revenue generated from the oil and gas sector, Saudi Arabia is planning to develop other industries to limit the dependency in Oil and Gas revenues and diversify its economy.
Scope of the Report
Paper is widely used because it is low cost, holds its shape, and is easily decorated. Paper and board are usually measured by weight or calliper. Commercially available glass is made from silica, sodium carbonate and calcium carbonate. The metals used in packaging are predominantly tin-plated or aluminum and are used to make food and drink cans, aerosol cans, tubes, drums, and slip or hinged lid DrumsDrumsboxes for gift sets and selections of confectionery or biscuits. All packs are recyclable.
Key Market Trends
Rigid Packaging Material Paper & Paperboard is Expected to Hold a Significant Market Share
- With the introduction of government initiatives in Saudi Arabia proposing a plan to limit the usage of plastic, paper and paperboard are considered as the next best alternative due to its recyclable properties. The harm that this material causes to the environment is less compared to the plastic packaging and has been established and backed by multiple research reports.
- Economy diversification policies have also expedited the foreign investment. One Window solution for business setup has also been a positive impact on the market. Further, with the already existing food and beverage products using paper and paperboard for different levels of packaging, it becomes easier to gain acceptance from the current set of consumers. Due to the already existing products with paper packaging, it is expected to replace plastic packaging in the future.
- Plastic packaging solutions are currently being used across various industries such as manufacturing, retail, and healthcare. Plastic packaging has gained significant traction in the healthcare industry due to its high barrier properties, long shelf-life, and durability. The demand for plastic packaging solutions is estimated to continue to grow throughout the forecast period.
Rapid Urbanization and Augmenting Policies Prompts Retail to Experience Significant Market Growth
- To reduce the dependence on the revenues from the Oil and Gas sector, the government is focussing on developments of other industries in order to cater development as well as generate a substantial amount of revenues from other sectors in order to safeguard themselves from the risk that pertains due to the non-renewable nature of fossil fuels.
- The government of Saudi Arabia has aimed towards having a more inclusive role for Saudi nationals through Saudization reforms. In favor of this initiative, the Saudi Arabia government announced the initiative through which it would nationalize 12 economic activities including retailing. Over 40 separate types of retail professions were restricted to Saudi nationals for employment in three phases beginning from September 2018 to January 2019. These include apparel and footwear specialist retailers, homewares and home furnishing stores, electronics and appliance specialist retailers, and jewelry and watch specialist, retailers.
- While the immediate effect of economic restructuring would have resulted in an economic slowdown, recent initiatives are being taken by the government as a part of Saudi Vision 2030, which offers a higher long-term outlook. With foreign direct investments increasing in Saudi Arabia, the retail sector is expected to gain a substantial boost.
Competitive Landscape
The packaging industry in Saudi Arabia consists of several regional players as well as international players with their significant presence in Saudi Arabia region. Due to the huge number of competitors, the market is fragmented with no player existing with significant market share. Further, packaging solutions demand better control on value chain for competitive pricing and one point solution offered for strategic advantage. With the amendments passed to ban plastic the competition is projected to decrease due to the adverse effects on the manufacturers producing plastic packaging.
- May 2019 - Amcor Limited and Bemis Company, Inc. announced that regulatory clearance has been received from the US Department of Justice in relation to the combination of the two companies. A condition of this approval is the previously announced sale of certain Amcor assets located in the US to Tekni-Plex, Inc.
- February 2019 - Amcor Limited launched Genesis, a new in-store recyclable laminate solution. Targeting at a wide range of segments, including fresh fruits and vegetables, frozen food, dried fruits, nuts, confectionery, chilled goods, and pet food. The product is adaptable to a variety of packaging types and is appropriate for specific medical, home, and personal care markets.
- February 2019 - Gulf Printing and Packaging is paving the path for future growth as they are looking for scope in the food packaging market and they are planning to have further expansion in the future.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- Report customization as per the client's requirements
- 3 months of analyst support
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