Saudi Arabia Paper And Paperboard Packaging Market Size (2024 - 2029)

Saudi Arabia Paper and Paperboard Packaging Market Analysis

The Saudi Arabia Paper And Paperboard Packaging Market size in terms of shipment volume is expected to grow from 1.55 Million tons in 2024 to 1.92 Million tons by 2029, at a CAGR of 4.38% during the forecast period (2024-2029).

In Saudi Arabia, the demand for user-friendly packaging and enhanced product protection is rising, which is propelling the adoption of corrugated packaging. Paper and cardboard packaging is popular for its versatility and cost-effectiveness, offering visually appealing options across numerous industries. They are eco-friendly and adaptable to various sizes, making them further popular. These packaging formats also align with the growing environmental consciousness among consumers and businesses.

• Saudi Arabia's food delivery industry has grown significantly, driven by the surge in single-person households and evolving consumer lifestyles. This is fueling the demand for single-serve packs, further propelling the growth of the packaged food industry and, in turn, the market studied. The convenience offered by single-serve packs aligns with the fast-paced lifestyles of modern consumers, making them an attractive option for people seeking quick and easy meal solutions.
• Urbanization, a rise in tourists favoring safer processed meals, and a growing foreign population have heightened the consumption of packaged food and beverages in Saudi Arabia. These factors collectively contribute to the increasing demand for convenient and safe food packaging options, further driving the growth of the market.
• The Saudi government has implemented regulations to mitigate the environmental impact of plastic packaging. These regulations include restrictions on single-use plastics and the promotion of sustainable packaging alternatives such as paper and cardboard. Such regulations are anticipated to support the growth of the market.
• Although Saudi Arabia is the biggest market in the Cluster Greater Middle East and Africa, it has fewer paper mills and recyclers in the region than its counterparts. Moreover, Saudi Arabia's Vision 2030 announcement outlined a sustainable future for the industry, albeit one riddled with supply chain issues as vendors were forced to augment existing chains to match better. It is an ambitious yet achievable blueprint that expresses the country's long-term goals and expectations and reflects its strengths and capabilities.
• In the post-pandemic, companies prioritized aligning production with pre-pandemic levels while placing sustainability on a medium-term agenda. In April 2024, the Middle East Paper Manufacturing and Production Company (MEPCO) collaborated with GM Voith SE & Co. KZ, securing a production line for their cardboard project. The machine boasts an annual capacity of 450 thousand tons, with a total project investment pegged at SAR 1.78 (USD 0.474) billion over 36 months.

Saudi Arabia Paper and Paperboard Packaging Industry Segmentation

Various end-user industries rely on paper and paperboard for the packaging of different products. With numerous grades available, paperboard packaging is adaptable. Containers predominantly use paperboard due to its favorable properties. The journey of paperboard, from pulping and optional bleaching to refining, sheet forming, drying, calendaring, and winding, signifies the intricate process of paper manufacturing. Paper packaging materials stand out for their ease of reuse and recycling, especially when juxtaposed with metals and plastics. This inherent recyclability and reusability bolster the perception of paper packaging as both eco-friendly and cost-effective.

The Saudi paper and paperboard packaging market is segmented by type (folding cartons, corrugated boxes, and other types) and end-user verticals (food and beverage, healthcare, personal care and household care, industrial, and other end-user verticals). The report offers market forecasts and size in volume (units) for all the above segments.