Saudi Arabia Flexible Packaging Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 3.90 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Saudi Arabia Flexible Packaging Market Analysis
The Saudi Arabian flexible packaging market is expected to register a CAGR of 3.9% over the forecast period. The total daily calorie intake for domestic food in Saudi Arabia is 3,130, according to Foodex Saudi. This results in an annual consumption growth rate for the food industry of 18.5%. Through 2023, consumption rates are expected to increase by 55%.
- The growing demand in the pharmaceutical and healthcare sectors, high adoption rates of plastic packaging products in the retail industry, and changing consumer preferences toward convenient packing solutions are driving the growth of the market studied. Conversely, fluctuating raw material costs and environmental concerns over recycling and safe disposal of plastics are expected to challenge the development of the studied market.
- Additionally, as a more eco-friendly substitute for conventional flexible packaging, Oxo-biodegradable polymers are being promoted by several nations. The market for oxo-biodegradable plastic packaging has benefited from this increase. For instance, oxo-biodegradable plastics are now required in Saudi Arabia and the United Arab Emirates. As a result, trading companies operating in Saudi Arabia and the United Arab Emirates are transitioning to oxo-biodegradable plastic packaging options. As a result, the market for plastic packaging that breaks down organically has grown significantly.
- The demand for flexible plastic packaging solutions has been experiencing positive growth across the end-user sectors, such as food, retail, consumer goods, pharmaceuticals, and others. The continued rise in the levels of urbanization, a large expatriate population, and the changing dietary habits of the resident citizens catalyze the demand. Due to the increasing penetration of organized retail formats, such as hypermarkets, supermarkets, and e-commerce, the region's processed and packaged food market is currently exhibiting a solid growth rate.
- Also, according to the General Authority for Statistics (GASTAT), The country's import of plastic products increased by 18% to 456,000 tons in the second quarter of 2022 from 386,000 tons in 2021 to cater to the increasing demand.
- However, The price volatility of raw materials on the domestic market due to the market's fluctuating prices for oil and gas has posed a significant difficulty for market vendors since it skews the planning for the cost estimations that the vendors typically recommend for end users. The diminishing profit margins have also held down the investment in technological upgrades brought on by the growing export rivals from other countries worldwide.
- Unique challenges brought by the COVID-19 pandemic forced many consumers to adopt new purchasing behavior, which made many flexible packaging producers adjust their operations to meet consumer preferences and drive sales. Further, the Russia-Ukraine war has an impact on the overall packaging ecosystem.
Saudi Arabia Flexible Packaging Market Trends
This section covers the major market trends shaping the Saudi Arabia Flexible Packaging Market according to our research experts:
Increasing Flexible Plastic Packaging Solutions Demand across the End-user Industry
- The growing number of private-sector packaging companies and family-owned business firms in Saudi Arabia indicates the thriving packaging market in the country. Other significant factors contributing to Saudi Arabia's high demand for bags and pouches include the nation's economic growth and the expansion of the e-commerce and retail industries.
- The bags and pouch segment is a significant share of the flexible packaging industry. The vast potential has been established for the flexible packaging market by factors including the expanding demand for pouch packaging in the food and beverage industries. For product unitization and logistics, materials used in transport packaging must have excellent processing capabilities, load stability, and mechanical properties.
- The region's flexible packaging, such as paper bags and pouches, is also growing due to recyclability, affordability, lightweight, and growth in packaged foods overall. More multinational companies are entering the market as the region is home to a growing food manufacturing sector that benefits from population and income growth, lifestyle changes, state support, and favorable trade agreements.
- Several multinational companies have entered the Saudi food processing sector recently because of more demand for packaged food and the opportunity to export duty-free to other Arab counties. Most of these companies entered the market via joint ventures with Saudi companies, licensing agreements, or taking over existing Saudi food processing companies.
- Over the past years, increased disposable income allowed consumers to shift from carbohydrate to protein-based diets and increased meat and dairy consumption. Most animal protein comes from meat, which has been steadily rising because of its competitive price. This has propelled the demand for flexible packaging in Saudi Arabia. For instance, according to Ubhar Capital, Saudi Arabia has one of the world's highest per capita meat consumption and is projected to reach around 2.11 million tons in 2024.
Food Industry is Anticipated to Witness Significant Growth
- Due to shifting diets and lifestyles and the growth of food service and retail industries, the demand for packaged food is rising. Demand for prepackaged and easier-to-prepare foods is growing in Saudi Arabia as more women join the workforce. Because of this, demand for packaged goods has quickly migrated from traditional marketplaces to hypermarkets in the retail sector. Some locally produced foods, especially meat and dairy products from animals and poultry, profit from the idea that they adhere to better halal standards than imported foods.
- Almarai and Al Safi Danone are some of the major players who control more than 60% of the dairy market, and Nadecand Nada control nearly 25%. The others compete for a share of the remaining 10-15% of the market. For instance, according to Ubhar Capital, Almarai generates 52% of its share from fresh dairy in the dairy and juice category in the 3rd quarter of 2021.
- Saudi Arabia is home to an increasing number of restaurants, and the food manufacturing sector benefits from the growth in population and income, lifestyle changes, state support, and favorable trade agreements. The demand for disposable packaged foods is growing, and more multinational companies are entering the market. According to the US Department of Agriculture (USDA), in 2021, Saudi Arabia imported approximately USD 2.4 billion of intermediate food products, primarily for further processing.
- Additionally, according to the United States department of agriculture (USDA), most Saudi food manufacturers depend on imports for food ingredients; the country's importance was valued at around USD 2.8 billion for intermediate food products in 2021. Moreover, the food manufacturing sector in Saudi Arabia benefits from the increasing population and income growth, change in lifestyle, state support, and favorable trade agreements are anticipated to support the development of flexible packaging in the region.
Saudi Arabia Flexible Packaging Industry Overview
The Saudi Arabian flexible packaging market is moderately fragmented due to numerous local and global vendors in the market. The global market players are finding new ways, such as strategic partnerships and horizontal or vertical integration, to accelerate the development of flexible packaging in Saudi Arabia.
- February 2022: Tetra Pak, a European food packaging company, partnered with Saudi Top Plastic Factory (STP) and ObeikanPaper Industries (OPI) on the recycling project, which involved a joint investment of more than EUR 3 million.
Saudi Arabia Flexible Packaging Market Leaders
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Flexpack (ENPI GROUP)
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Saudi Printing & Packaging Company
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Napco National
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Printopack
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Gulf East Paper & Plastic Industries LLC
*Disclaimer: Major Players sorted in no particular order
Saudi Arabia Flexible Packaging Market News
- August 2022: Symphony Environmental Technologies PLC announced the completion of a manufacturing agreement with EcobatchPlastic Factory in the United Arab Emirates. According to the company, Ecobatchhas improved its capacity to support a substantial increase in demand in the GCC (Gulf Cooperation Council) region, which is projected due to more comprehensive enforcement of regulations that support the d2w type of biodegradable technology.
Saudi Arabia Flexible Packaging Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
4.4 Assessment of the Impact of COVID-19 on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Demand for Composable Plastics is Expected to Increase with New Regulations Being Enforced
5.1.2 Increasing Flexible Plastic Packaging Solutions Demand across the End-user Industry
5.2 Market Restraints
5.2.1 Concerns Regarding the Environment and Recycling
6. Global Flexible Packaging Market Overview
6.1
7. MARKET SEGMENTATION
7.1 By Material
7.1.1 Plastic
7.1.2 Metal
7.1.3 Paper
7.2 By Product Type
7.2.1 Bags and Pouches
7.2.2 Films and Wraps
7.2.3 Other Product Types
7.3 By End-User
7.3.1 Food
7.3.2 Beverages
7.3.3 Healthcare and Pharmaceutical
8. COMPETITIVE LANDSCAPE
8.1 Company Profiles
8.1.1 Integrated Plastics Packaging
8.1.2 Arabian Flexible Packaging LLC
8.1.3 Huhtamaki Flexibles UAE
8.1.4 Amber Packaging Industries L.L.C.
8.1.5 Swiss Pac UAE
8.1.6 Napco National
8.1.7 Flexpack (ENPI GROUP)
8.1.8 Gulf East Paper & Plastic Industries LLC
8.1.9 Saudi Printing & Packaging Company
8.1.10 Printopack
- *List Not Exhaustive
9. INVESTMENT ANALYSIS
10. FUTURE OF THE MARKET
Saudi Arabia Flexible Packaging Industry Segmentation
The market study tracks the demand for flexible packaging through the revenue derived from selling bags, pouches, films, and wraps. The study also tracks the effects of regulations and market drivers on growth, along with factors hindering the market growth. The Saudi Arabian Flexible Packaging Market is segmented by material (Plastic, Metal, and Paper), product type (Bags and Pouches, Films and Wraps), and End-Users (Food, Beverages, Healthcare, and Pharmaceutical). The market sizes and forecasts regarding value (USD million) for all the above segments are provided.
| By Material | |
| Plastic | |
| Metal | |
| Paper |
| By Product Type | |
| Bags and Pouches | |
| Films and Wraps | |
| Other Product Types |
| By End-User | |
| Food | |
| Beverages | |
| Healthcare and Pharmaceutical |
Saudi Arabia Flexible Packaging Market Research FAQs
What is the current Saudi Arabia Flexible Packaging Market size?
The Saudi Arabia Flexible Packaging Market is projected to register a CAGR of 3.9% during the forecast period (2024-2029)
Who are the key players in Saudi Arabia Flexible Packaging Market?
Flexpack (ENPI GROUP), Saudi Printing & Packaging Company, Napco National, Printopack and Gulf East Paper & Plastic Industries LLC are the major companies operating in the Saudi Arabia Flexible Packaging Market.
What years does this Saudi Arabia Flexible Packaging Market cover?
The report covers the Saudi Arabia Flexible Packaging Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Saudi Arabia Flexible Packaging Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Saudi Arabia Flexible Packaging Industry Report
Statistics for the 2024 Saudi Arabia Flexible Packaging market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Saudi Arabia Flexible Packaging analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
