Saudi Arabia Foodservice Disposable Packaging Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 1.55 Billion |
| Market Size (2029) | USD 2.01 Billion |
| CAGR (2024 - 2029) | 5.37 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Saudi Arabia Foodservice Disposable Packaging Market Analysis
The Saudi Arabia Foodservice Disposable Packaging Market size is estimated at USD 1.55 billion in 2024, and is expected to reach USD 2.01 billion by 2029, at a CAGR of 5.37% during the forecast period (2024-2029).
- Driven by the rising consumption of ready-to-eat foods, the food service disposable sector in the country has experienced notable growth and is poised for further expansion. As urbanization progresses, consumers are increasingly leaning towards takeout and catering services, intensifying the demand for single-use packaging solutions.
- In June 2024, the World Bank highlighted the country's notable urbanization growth. In 2023, with 84.95% of the population residing in urban areas, there was a surge in demand for packaged foods and the rise of quick-service restaurants, bolstering the market's growth prospects.
- To capture consumer attention and drive market growth, the food service disposable packaging industry is broadening its horizons by introducing innovative products. Furthermore, the surging demand for home deliveries and the popularity of outdoor dining are propelling the market's expansion.
- As modern life accelerates, consumers increasingly favor meals that are both quick to eat and easy to transport. With a heightened emphasis on convenience and food quality, manufacturers face mounting pressure to roll out safe and innovative products. Trends like convenience packaging, shifting lifestyles, and the growth of smaller households are amplifying the demand for single-serve options.
- At the heart of Vision 2030, as the nation strides towards a Net Zero future by 2060, lies a commitment to sustainability. Leading the charge in clean energy and sustainable practices, Saudi Arabia's plastic recycling initiatives align with the circular goals outlined in its Vision 2030 strategy. This ambitious plan targets a complete diversion of municipal solid waste, 60% of construction waste, and 85% of industrial waste from landfills, paving the way for both public and private entities to establish recycling ventures across the nation.
- Having undergone substantial economic growth and urbanization since oil was discovered nearly ninety years ago, Saudi Arabia is now pivoting towards a circular economy in response to the changing packaging landscape. This strategy underscores the importance of waste minimization, resource efficiency, and an unwavering dedication to sustainability.
- Effective April 1, 2024, Saudi Arabia broadened its customs duty waivers for industrial goods. On March 8, 2024, the Ministry of Industry and Mineral Resources announced the inclusion of packaging materials in these expanded customs duty exemptions. This move facilitates the import of packaging products and resins at reduced prices, thereby bolstering the growth of the disposable packaging market.
Saudi Arabia Foodservice Disposable Packaging Market Trends
Tubes and Containers Segment Holds Significant Market Share
- Disposable food containers, designed for single-use applications, are crafted from diverse materials such as plastic, paper, and aluminum. Available in a myriad of shapes and sizes, these containers are especially prominent in the food industry, finding primary use in take-out services, meal preparation, and catering. Their importance is underscored by their ability to maintain food quality and freshness while ensuring easy transportation. As per the General Authority for Statistics in Saudi Arabia, the number of food outlets in the country is projected to rise to approximately 91,000 by 2025, up from around 87,000 in the previous year.
- The growing demand for disposable tubs and containers can be linked to their myriad advantages. A standout benefit is the convenience they provide. By eliminating the need for post-use washing, these containers save valuable time and effort in food preparation. Their lightweight and compact design ensures easy transportation and storage. Moreover, their stackable nature optimizes storage efficiency, leading to a more organized solution.
- Various sectors, especially restaurants and food establishments, are increasingly turning to disposable food containers, drawn by their cost-effectiveness and hygienic advantages. This trend suggests a robust growth trajectory for the demand for these containers. As lifestyles evolve and disposable incomes rise, there's a marked shift towards take-out, fast food, and pre-prepared meals. This shift is poised to bolster the tubs and containers segment within the region's food service industry.
- In the realm of packaging, disposable food containers and tubs are becoming pivotal in maintaining hygiene standards. Traditional reusable containers, despite thorough cleaning, can risk cross-contamination. In contrast, disposable containers, used once and then discarded, significantly diminish the chances of bacterial transfer. This heightened hygiene assurance benefits not just individual consumers but also businesses in the food service sector. Moreover, with leading food vendors ramping up their service offerings in the region, the opportunities in this segment are set to expand.
- The surging popularity of full-service restaurants is anticipated to boost the demand for tubs and containers. In Saudi Arabia, full-service restaurants are pivotal to the dining landscape, especially with the rising trend of dining out among locals and tourists. As awareness of takeaway and online food delivery services grows in KSA's developing sector, sales of disposable food containers and tubs are witnessing an uptick.
Quick Service Restaurants Hold Major Market Share
- Quick-service restaurants (QSRs), often referred to as fast-food outlets, emphasize speedy service and quick food preparation. As the number of QSRs in Saudi Arabia continues to grow, so does the demand for food service packaging. The rising popularity of fast-food and quick-service restaurants in Saudi Arabia can be attributed to their convenience and prompt service, driving the segment's expansion.
- According to projections from the United States Department of Agriculture (USDA), Saudi Arabia's food service sales are set to increase at an annual rate of around 8% in the coming years. This growth is primarily driven by an influx of expatriates, tourists, and religious visitors. Additionally, Saudi Arabia's strong per-capita income and purchasing power have heightened the demand for diverse and organic food, further enhancing the appeal of QSRs in the country.
- The increasing number of coffee and snack outlets in Saudi Arabia has spurred a demand for disposable packaging. This trend is expected to further boost the consumption of paper and plastic cups, trays, and containers, driving market growth.
- In July 2024, Canadian coffee giant Tim Hortons celebrated the opening of its 300th café in Riyadh, Saudi Arabia. With its modern infrastructure and attractive business incentives, the Middle East emerges as a prime investment destination, enticing brands to broaden their presence in the region.
- In Saudi Arabia, the growing demand for packaging solutions is driven by urbanization, a booming tourism sector, and evolving consumer preferences, all of which enhance the popularity of online food delivery services. According to the World Bank, 84.95% of Saudi Arabia's population resides in urban areas. Leading food delivery platforms such as Jahez, Talabat, Uber Eats, and Hunger Station are prominently offering reliable delivery services from a variety of QSRs nationwide.
Saudi Arabia Foodservice Disposable Packaging Industry Overview
There is increasing competition among local vendors in the country. Buyers can choose from multiple vendors due to a wide range of food service suppliers disposable.
Many brands partner with local food service disposable packaging companies for customized packaging solutions.
Local packaging companies often operate in tighter margins than foreign vendors, owing to fluctuations in raw material prices, high labour costs, and intense competition from foreign suppliers. Foreign suppliers benefit from several technological advancements in packaging.
The surge in demand for disposable food services aided by growing demand from home takeaway and online food delivery services, which is expected to remain high in the future. Overall, the competitive rivalry is high and is expected to remain the same over the forecast period.
Some of the major players in the market are Napco National, Hotpack Packaging Industries LLC, SAQR Pack, Falcon Pack, and ENPI GROUP among others.
Saudi Arabia Foodservice Disposable Packaging Market Leaders
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Napco National Packaging
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Hotpack Packaging Industries LLC
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SAQR PACK
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Falcon Pack
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ENPI GROUP
*Disclaimer: Major Players sorted in no particular order
Saudi Arabia Foodservice Disposable Packaging Market News
- August 2024: Barbar, a Lebanese restaurant chain under the Lavoya Restaurant Group, has inaugurated a new outlet in Riyadh. This expansion underscores Lavoya's strategic dedication to meeting the region's appetite for diverse and premium dining experiences.
- May 2024: Arabian Plastic Industrial Co. has begun operations at its newly established plant in Al-Kharj Industrial City. This move underscores the company's commitment to its strategic goals, focusing on bolstering growth and addressing demand in the Central and Eastern regions.
Saudi Arabia Foodservice Disposable 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 Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Assessment of The Impact of the Macroeconomic Factors on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Demand for Convenient Packaging Food Continues to Grow
5.1.2 Increasing Emphasis on Sustainability is Causing the Vendors to Focus on Recycled Plastics
5.2 Market Challenges
5.2.1 Positive and Steady Growth of Flexible Packaging Due to Environmental Pressures and Uncertainty in Polymer Prices
6. MARKET SEGMENTATION
6.1 By Material
6.1.1 Plastic Resins
6.1.1.1 PP
6.1.1.2 PET
6.1.1.3 PE
6.1.1.4 PS
6.1.1.5 Other Plastic Resins
6.1.2 Paper and Paperboard
6.1.3 Aluminum Foil
6.1.4 Other Materials
6.2 By Product
6.2.1 Cups
6.2.2 Tubs and Containers
6.2.3 Bowls
6.2.4 Trays
6.2.5 Clamshell
6.2.6 Other Products (Bags, Wraps, Plates, Cartons, etc.)
6.3 By Application
6.3.1 Quick Service Restaurants
6.3.2 Full-service Restaurants
6.3.3 Coffee and Snack Outlets
6.3.4 Retail Establishments
6.3.5 Institutional and Hospitality
6.3.6 Other Applications (Mobile Restaurants, Food Service Vehicles, Drive-ins, among others)
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Napco National
7.1.2 Hotpack Packaging Industries LLC
7.1.3 SAQR Pack
7.1.4 Falcon Pack
7.1.5 ENPI GROUP
7.1.6 Arabian Plastic Industrial Company (APICO)
7.1.7 International Food Services (IFS)
7.1.8 Prestige Packing Industry LLC
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
Saudi Arabia Foodservice Disposable Packaging Industry Segmentation
The study considers revenues accrued from the sales of foodservice packaging products offered by various vendors operating in the market based on application, such as quick-service restaurants, full-service restaurants, coffee and snack outlets, retail establishments, institutional and hospitality, and other applications considered in the scope of the study. Consumption value (USD million) of foodservice packaging products, such as cups, tubs and containers, trays, clamshells, bags and wraps, and cartons, are considered for the market size and forecasts. The report tracks the key market parameters, the underlying growth influencers, and the major vendors operating in the industry, which supports the market estimations and growth rates over the forecast period.
The Saudi Arabia foodservice disposable packaging marked it segmented by material (plastic resins [PP, PET, PE, PS, other plastic resins], paper and paperboard, aluminum foil, other materials]), by product (cups, tubs and containers, bowls, trays, clamshell, other products [bags, wraps, plates, cartons, etc.]), by application (quick service restaurants, full-service restaurants, coffee and snack outlets, retail establishments, institutional and hospitality, other applications [mobile restaurants, food service vehicles, drive-ins, among others]). The report offers market forecasts and size in value (USD) for all the above segments.
| By Material | |||||||
| |||||||
| Paper and Paperboard | |||||||
| Aluminum Foil | |||||||
| Other Materials |
| By Product | |
| Cups | |
| Tubs and Containers | |
| Bowls | |
| Trays | |
| Clamshell | |
| Other Products (Bags, Wraps, Plates, Cartons, etc.) |
| By Application | |
| Quick Service Restaurants | |
| Full-service Restaurants | |
| Coffee and Snack Outlets | |
| Retail Establishments | |
| Institutional and Hospitality | |
| Other Applications (Mobile Restaurants, Food Service Vehicles, Drive-ins, among others) |
Saudi Arabia Foodservice Disposable Packaging Market Research FAQs
How big is the Saudi Arabia Foodservice Disposable Packaging Market?
The Saudi Arabia Foodservice Disposable Packaging Market size is expected to reach USD 1.55 billion in 2024 and grow at a CAGR of 5.37% to reach USD 2.01 billion by 2029.
What is the current Saudi Arabia Foodservice Disposable Packaging Market size?
In 2024, the Saudi Arabia Foodservice Disposable Packaging Market size is expected to reach USD 1.55 billion.
Who are the key players in Saudi Arabia Foodservice Disposable Packaging Market?
Napco National Packaging, Hotpack Packaging Industries LLC, SAQR PACK, Falcon Pack and ENPI GROUP are the major companies operating in the Saudi Arabia Foodservice Disposable Packaging Market.
What years does this Saudi Arabia Foodservice Disposable Packaging Market cover, and what was the market size in 2023?
In 2023, the Saudi Arabia Foodservice Disposable Packaging Market size was estimated at USD 1.47 billion. The report covers the Saudi Arabia Foodservice Disposable Packaging Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Saudi Arabia Foodservice Disposable Packaging Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Saudi Arabia Foodservice Disposable Packaging Industry Report
Statistics for the 2024 Saudi Arabia Foodservice Disposable Packaging market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Saudi Arabia Foodservice Disposable Packaging analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
