Market Trends of Saudi Arabia Metal Packaging Industry
This section covers the major market trends shaping the Saudi Arabia Metal Packaging Market according to our research experts:
Increasing Demand for Steel Material
- Saudi Arabia's packaging industry follows legally mandated protection standards for metal containers, making them solid and reliable. Metal containers usually come with protective packaging. In addition to essential shieldings such as mildew, moisture, rust, and impact resistance, it also has electromagnetic shielding, an applicable packaging quality when industrial products are involved.
- In September 2022, the Saudi Minister of Industry and Mineral Resources announced three projects being built in the iron and steel sector with a combined production capacity of 6.2 million tonnes and a value of around SAR 35 billion (USD 9.3 billion approximately). Such government initiatives will leverage various industries' steel markets and packaging.
- Metal packaging is becoming more environmentally friendly as companies seek more effects and applications in various industries. Many industries rely almost entirely on such containers for storage. For instance, one of the leading packaging suppliers in Saudi Arabia, SAPIN, is a one-stop shop for all metal packaging needs. They are a well-known metal and packaging jar supplier in KSA and UAE.
![Production Of Crude Steel In Saudi Arabia From 2019 to 2021 (in Million Metric Tons)](https://s3.mordorintelligence.com/saudi-arabia-metal-packaging-market/1671608273818_saudi-arabia-metal-packaging-market_Production_Of_Crude_Steel_In_Saudi_Arabia_From_2019_to_2021_in_Million_Metric_Tons.png)
Food Industry to Witness Growth in the Country
- The metal packaging industry is one of the prominent industries contributing to Saudi Arabia's GDP. Various other economies are also engaging in trade activities with Saudi Arabia regarding the import of its metal packaging products, such as cans, containers, etc. This is anticipated to fuel the growth of the country's metal packaging market over the forecast period.
- The metal packaging for various food items over plastic bottles is expected to increase in Saudi Arabia due to the several regulations passed by the government over plastic. Also, the ban on non-biodegradable plastics in the country has been shifting the end-users focus towards alternative materials such as metal.
- Using metal bottles, cans and containers would eliminate recycling as these bottles and containers can be thoroughly washed and reused. Further, the recycling of metal is less compared to that of plastic. This is anticipated to aid in the growth of metal packaging in the food and other sectors of the market studied in the country.
- Food companies in the country also focus on collaborations as part of their regional business expansion. For instance, in July 2022, US-based Tyson Foods, Inc. and Saudi Arabia-based Tanmiah Food Company entered a strategic partnership. This partnership is anticipated to accelerate the growth of Tyson Foods and Tanmiah and create significant value in the short and long term. Such initiatives would further leverage the metal packaging market in the food sector.
- Moreover, with increased tourism, many international food outlets and grocery stores are growing in the country. Metal cans are preferred for food packaging for various reasons, including heat-conductivity, hygiene, and safety, making them a convenient choice for the domestic and industrial sectors. Aluminum cans are widely used in the food industry for packaging meat and seafood, fruits and vegetables, ready meals, pet food, soups and condiments, and others. Such a broad end-user market is creating significant demand for aluminum cans catering to the food industry.
![Number of Aggregate Food Outlets in Saudi Arabia from 2020 to 2023](https://s3.mordorintelligence.com/saudi-arabia-metal-packaging-market/1671608436935_saudi-arabia-metal-packaging-market_Number_of_Aggregate_Food_Outlets_in_Saudi_Arabia_from_2020_to_2023_.png)