Market Reports on Saudi Arabia Provides the Trending Market Research Report on “Saudi Arabia Rigid Plastic Packaging Market – Growth, Trends, COVID-19 Impact, and Forecasts (2021 – 2026)” under Packaging category. The Saudi Arabia Rigid Plastic Packaging Market is projected to exhibit highest growth rate over report offers a collection of superior market research, market analysis, and competitive intelligence and industry reports.
The Saudi Arabia Rigid Plastic Packaging Market (henceforth, referred to as the market studied) was valued at USD 5.82 billion in 2020, and it is projected to reach USD 7.92 billion by 2026, registering a CAGR of 5.2% during the period of 2021-2026 (henceforth, referred to as the forecast period).?
– The new plastic regulation is expected to affect a wide range of products, such as plastic cases, plastic containers, and other plastic packaging products. According to the new rules and regulations implemented by the Saudi organization (SASO), plastic products must now be made of approved oxo-biodegradable materials. This is further expected to boost the investment for innovation and result in the introduction of new rigid packaging solutions in the market, over the next two years, to adhere to the unique regulatory needs and the needs of the end-user clients. ?
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– Moreover, the sustainable nature of the oxo-degradable plastics incorporated in the rigid plastic packaging solutions will enhance the market penetration of several players by further aligning with the consumer paradigm shift toward eco-friendly packaging solutions.? Additionally, the government’s attempt to diversify its economic dependence on the oil and gas industry led to its support for real estate developments and resulted in the increased opening of the retail markets. This is expected to provide new opportunities for plastic packaging and increased demands from different sectors.?
– In FY 2019, the Saudi Arabian government introduced a 17% increase, an estimated USD 45.86 billion, in the funds allocated for healthcare and social development. Out of these allocated government funds, approximately USD 12.72 billion was earmarked for spending on a variety of healthcare projects directly linked to Saudi Arabia’s Vision 2030.
– The pre-COVID-19 market scenario in the studied region witnessed increased adoption of rigid plastic packaging in pharmaceutical packaging, and several market players carved out a niche by specifically catering to the demand.? During the pandemic, oil derivatives, such as plastics, were being incorporated at unprecedented levels for various solutions, including packaging. Despite the many business challenges in the current market scenario, the petrochemical industry in the region was able to protect frontline workers and supply a wide-ranging of essential medical supplies, including packaging needed for transit and efficient shelf-life. ?The industries of medical and the food industry boomed significantly to cover the country’s need during the COVID-19 crisis. This was reflected in the ancillary demand for rigid plastic packaging. ?
Key Market Trends
Bottles and Jars are Expected to Hold Major Share
– The studied market is witnessing increased consumer demand, driven by the increasing consumption of plastic bottles and jars. The industries where plastic bottles and jars are highly used in the country include – food and beverage, cosmetics and personal care, and healthcare industries. Saudi Arabia is now witnessing the most considerable growth in the food and beverage industry, compared to other industries.? According to the Saudi Arabia Ministry of Commerce and Industry, the beverage and soft drink industries are now among the most mature sectors in the country, constituting a vast majority of the food and beverage sectors’ exports.?
– Increased income levels, owing to higher employment levels, are supporting a growing middle class in the country. This ever-increasing trend is leading the middle class to increase their budgets allocated for consumer products, which include personal care. The demand for personal care and cosmetics, particularly skin, make-up, and hair-care products, is witnessing rapid growth resulting in the growth of packaging.? Moreover, with the increasing consumption of bottled water in the region, several market players are capitalizing on this market opportunity by offering plastic bottle packaging solutions with different capacities. For instance, Jeddah-based Plastico SPS manufactures a wide range of bottles for water, dairy containers, household care, lube oil, and other end-user industries.
– As a result, Companies in the country are focusing on quality with good packaging, distribution, promotion, and pricing to attain brand loyalty and compete with global brands.? For instance, the longstanding presence of companies, such as Unilever, Procter and Gamble, and L’Oreal is fueling consumer interest in international beauty and personal care brands, which are perceived as being of higher quality.?
– However, several sustainable and recyclable technologies concerning plastic packaging are being developed in the region, which is further anticipated to eliminate the current market restraints that impede the growth rate of several players functioning in the market.? For instance, in November 2019, researchers at the King Abdullah University of Science and Technology (KAUST), Saudi Arabia, developed a way to convert different plastic bottles into porous membranes that could be used for molecular filtration in the oil and chemical industry. The technique has the potential to help achieve considerable energy cuttings and “upcycle” plastic waste.?
Food is Expected to Hold the Largest Market Share during the Forecast Period
– In Saudi Arabia, food packaging is one of the largest users of plastics. In the food industry, the demand for rigid plastic packaging is increasing, as the industry is increasingly replacing traditional materials, such as paperboard, metals, and glass, owing to their beneficial properties, such as lightweight and reduced cost.
– The increasing consumption of bakery products in the region is further driving the adoption of rigid plastic packaging solutions, mainly to increase the shelf-life, as well as to avoid chalky bread conditions. Furthermore, companies, like Almarai, cater to a whole variety of baked products and sweets, such as croissants, swiss rolls, cake bars, wafer sticks, and apple strudel, along with its brand ‘7 Days’. These products are usually sold in plastic packages, mainly for enhanced consumer convenience. ?
– Moreover, with the increasing consumption of sweets and confectionery, several regional rigid plastic packaging providers are offering packaging solutions that cater to the needs of providers of sweets and confectionery. For instance, in March 2020, Superfos, a berry global company, designed an unipak tub for Al Welfag Trading and Manufacturing company, which produces sweet and savory products in Saudi Arabia. The Unipak tub is purely made of a polypropylene material, and it efficiently carries sweets, like lollipops, with enhanced shelf appeal.?
– Furthermore, thee short-term implications of the COVID-19 pandemic indicate an upsurge in the consumption of frozen foods in the region, which is further anticipated to boost the market’s growth. However, thee long-term forecast is likely to be impeded by the continuous government regulations and sustainability goals that eliminate plastic usage in packaging.?
The competitive landscape of the rigid plastic packaging market in Saudi Arabia remains fragmented, with many small and medium-sized players operating in the market. Some of the recent developments of the market as follows:-
– March 2020, Superfos, a berry global company, designed an unipak tub for Al Welfag Trading and Manufacturing company, which produces sweet and savory products in Saudi Arabia. The Unipak tub is purely made of polypropylene material, and it efficiently carries sweets, like lollipops, with enhanced shelf appeal.?
– November 2019 – Berry Global Group, announced a partnership with SABIC, a global chemistry industry leader based in Saudi Arabia, to drive innovation and use of polyolefin resins made from chemical recycling.
– May 2019, Sabic (Riyadh, Saudi Arabia), a manufacturer of petrochemicals, introduced its LNP ELCRIN iQ portfolio of polybutylene terephthalate (PBT) compounded resins. According to the company, it is derived from recycled polyethylene terephthalate (rPET) and supports the circular economy, while reducing plastic waste substantially. The demand for rigid packaging from the food and beverage industry is expected to be constant, driving the demand for PET in the country.?
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