Market Trends of Saudi Arabia Pouch Packaging Industry
The Standard Pouch Segment is Expected to Register the Highest Growth
- Standard pouches, composed of multiple thermoplastic layers and other materials, offer enhanced structural support to packaging. The rising popularity of standard pouches with bottom gussets in Saudi Arabia, owing to their lightweight, flexible nature and suitability for shelf displays, is fueling growth in the pouch packaging market.
- In Saudi Arabia, the increasing preference for standard pouch packaging in the food and beverage sector is primarily due to its cost-effectiveness. With a surge in disposable income, there is a heightened appetite for packaged foods, further bolstering the market. These pouches, crafted from a blend of plastic and paper, come in flat-bottom and gusseted designs, ensuring stability and convenience across various products.
- Key players in the Saudi Arabian pouch packaging sector, such as Napco National and Printopack, are rolling out printed and laminated pouch bags. These bags, fashioned from mono-layer films, cater to food and non-food items, driving market expansion. These pouches offer customization in design and print, tailoring to diverse customer needs.
- As Saudi Arabia witnesses a surge in imports, the packaging industry is experiencing a ripple effect. Notably, data from the General Authority of Statistics highlights China as the leading import partner, trailed by the United States and India. Rounding up the list are nations like the UAE, Germany, Switzerland, Italy, Japan, Vietnam, and Egypt, collectively accounting for 62.7% of the country's total imports.
Understand The Key Trends Shaping This Market
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The Food Industry is Expected to Dominate the Market
- The demand for food products in Saudi Arabia is rising, fueling a surge in demand for pouch packaging. Data from the United States Department of Agriculture (USDA) highlights a notable shift: the younger demographic in Saudi Arabia is increasingly favoring ready-to-eat, packaged, and takeaway foods, spurring the need for pouch packaging solutions.
- Moreover, with a thriving construction sector and a notable increase in the number of tourists and religious visitors, the nation's food consumption has seen a significant rise. According to the United States Department of Agriculture (USDA), Saudi Arabia imports approximately USD 30 billion worth of food and agricultural products annually as the country has a growing food processing sector and strong food service industry due to tourism, which further boosts the demand for pouch packaging.
- One standout trend in Saudi Arabia is the growing consumer preference for nutritious options, particularly dairy, to cater to diverse demographics and bolster market growth. This shift is further accentuated by the country's increasing dairy imports, driving up the demand for stand-up pouch packaging.
- The USDA data underscores Saudi Arabia's position as a key player in the global food and agricultural market, presenting ample opportunities for US food exports. Notably, Saudi Arabia's food retail sales surged from USD 50 billion in 2022 to USD 58 billion in 2023, largely fueled by the demand for ready-to-eat meals, processed foods, and savory snacks, which propels the market's growth.
