Market Trends of Saudi Arabia Foodservice Disposable Packaging Industry
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.
Understand The Key Trends Shaping This Market
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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.
