Saudi Arabia plastic packaging market is projected to grow at CAGR of 5.2% during the forecast till 2032 fueled by the higher demand for consumer goods along with the surge in industrial activities.

Major Market Drivers and Emerging Trends

Saudi Arabia plastic packaging market size growth is primarily fueled by the growing demand for consumer goods. Saudi Arabia is a wealthy economy heavily dependent on oil and gas as it also ranks among countries with the highest urbanization globally with 80% of its population residing in cities. The last thirty years have witnessed rapid urban growth and infrastructure expansion which contribute to a notable improvement in the living standard for its people. An expanding middle class coupled with higher living standards and greater income has led to a surge in demand for consumer goods primarily packaged in plastic products.

The other factor supporting Saudi Arabia plastic packaging market growth is the rise in industrial activities particularly in oil and gas along with construction and other industries. Saudi Arabia hosts numerous manufacturing and construction industries that rely on industrial packaging items like plastic drums and crates to transport and store goods. Furthermore, the growth in trade activities requires the availability of effective and safe packaging solutions for product storage and transportation across the world. This has led to an increased requirement for plastic packaging with high quality in the industrial sector in the country.

Additionally, the demand for halal cosmetics is increasing in the country as more consumers recognize their benefits including containing no harmful chemicals and their gentleness on the skin. This trend has a beneficial effect on the market with these cosmetic products commonly packaged in plastic pouches or bottles. While Muslim population in the country contributes significantly to the demand for these products, their popularity is not limited to Muslims alone. The growing interest from non-Muslim consumers is a primary factor behind the halal cosmetic products expansion in the country.

Market growth is driven by the increasing need for PET bottles particularly in the food and beverage sector. The use of PET bottles in packaging soft drinks and other items is driving segment growth which in turn benefits the plastic packaging market in the country. PE is also expanding quickly as it is among the most durable and affordable plastics available. PE is produced from petroleum-based polymers and offers strong resistance to environmental challenges. The PP segment is projected to grow due to its extensive use in soft drink packaging especially in bottle caps and closures. It is also commonly used in the healthcare sectors for packaging syringes and medical products as it can withstand environmental elements like light and heat.

Product Insights: Flexible packaging segment registered the largest revenue share

The flexible packaging segment is leading the market due to the increasing preference for packaged beverages and food along with a transition towards more sustainable packaging options. Its adoption is further fueled by its benefits including lower transportation expenses and easier storage.

Rigid packaging including bottles and cans contains stronger and heavier materials in comparison to flexible packaging. Rigid packaging typically comes with a higher price and a larger environmental impact with a greater carbon footprint in comparison to flexible packaging.

 Application Insights: Food & Beverages segment captured the largest market share

The food & beverage category dominated the market with a large population and rising consumer spending in Saudi Arabia propelling the food industry growth and driving the need for packaged foods. The rise of food delivery in Saudi Arabia fueled by urbanization and busy lifestyles is further contributing to the segment growth.

The personal & household care sector has also grown significantly as consumers become more aware of and prefer halal cosmetic items made from safe ingredients which protect the skin. A growing consumer focus on personal appearance is also driving the segment growth.

Top Market Players

Several key players in the market are Sealed Air, Flex Pack, ASPCO, Napco National, among others.

Key Developments

• • In 2023, Sealed Air successfully acquired Liquidbox which is a company specializing in flexible packaging. This acquisition strengthens Sealed Air in expanding its product offerings and serving its customer base in Saudi Arabia where it already has an extensive presence.
  • In 2023, the food packaging facility of Hotpack Packaging Industries has been officially launched in Saudi Arabia. The new facility opening is projected to reinforce its dominant position in Saudi market.

Segments covered in the Report:

The Saudi Arabia Plastic Packaging Market has been segmented on the basis of Material, Product, and Application. Based on the Material, the market is segmented into Polyethylene (PE), Polyethylene Terephthalate (PET), Polypropylene (PP), Polystyrene, Expanded Polystyrene, Polyvinyl Chloride, Bio-based Plastics, and Others. Based on the Product, the market is segmented into Rigid and Flexible. The Rigid segment is further segmented into Bottles & Jars, Cans, Trays & Containers, Caps & Closures, and Others. The Flexible segment is further segmented into Wraps & Films, Bags, Pouches, and Others. Based on the Application, the market is segmented into Food & Beverages, Industrial Packaging, Pharmaceuticals, Personal & Household Care, and Others.

 Market Segmentation

Saudi Arabia Plastic Packaging Market by Material

• • Polyethylene (PE)
  • Polyethylene Terephthalate (PET)
  • Polypropylene (PP)
  • Polystyrene
  • Expanded Polystyrene
  • Polyvinyl Chloride
  • Bio-based plastics
  • Others

Saudi Arabia Plastic Packaging Market by Product

• • Rigid
    • Bottles & Jars
    • Cans
    • Trays & Containers
    • Caps & Closures
    • Others
  • Flexible
    • Wraps & Films
    • Bags
    • Pouches
    • Others

Saudi Arabia Plastic Packaging Market by Application

• • Food & Beverages
  • Industrial Packaging
  • Pharmaceuticals
  • Personal & Household Care
  • Others

Saudi Arabia Plastic Packaging Market Leading players (Option 1: Free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • Sealed Air
  • Flex Pack
  • ASPCO
  • Napco National