Saudi Arabia Flexible Packaging Market Size (2024 - 2029)

The Saudi Arabian flexible packaging market is experiencing growth driven by increasing demand in the pharmaceutical, healthcare, and retail sectors, alongside shifting consumer preferences for convenient packaging solutions. The market's expansion is supported by the rise in urbanization, a large expatriate population, and changing dietary habits, which boost the need for flexible plastic packaging across various sectors, including food and e-commerce. However, challenges such as fluctuating raw material costs, environmental concerns, and the impact of global events like the COVID-19 pandemic and the Russia-Ukraine war pose difficulties for market vendors. Despite these challenges, the market is adapting, with a notable shift towards eco-friendly packaging alternatives like oxo-biodegradable plastics.

Market Size of Saudi Arabia Flexible Packaging Industry

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Saudi Arabia Flexible Packaging Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 3.90 %
Market Concentration Medium

Major Players

Saudi Arabia Flexible Packaging Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Saudi Arabia Flexible Packaging Market Analysis

The Saudi Arabian flexible packaging market is expected to register a CAGR of 3.9% over the forecast period. The total daily calorie intake for domestic food in Saudi Arabia is 3,130, according to Foodex Saudi. This results in an annual consumption growth rate for the food industry of 18.5%. Through 2023, consumption rates are expected to increase by 55%.

  • The growing demand in the pharmaceutical and healthcare sectors, high adoption rates of plastic packaging products in the retail industry, and changing consumer preferences toward convenient packing solutions are driving the growth of the market studied. Conversely, fluctuating raw material costs and environmental concerns over recycling and safe disposal of plastics are expected to challenge the development of the studied market.
  • Additionally, as a more eco-friendly substitute for conventional flexible packaging, Oxo-biodegradable polymers are being promoted by several nations. The market for oxo-biodegradable plastic packaging has benefited from this increase. For instance, oxo-biodegradable plastics are now required in Saudi Arabia and the United Arab Emirates. As a result, trading companies operating in Saudi Arabia and the United Arab Emirates are transitioning to oxo-biodegradable plastic packaging options. As a result, the market for plastic packaging that breaks down organically has grown significantly.
  • The demand for flexible plastic packaging solutions has been experiencing positive growth across the end-user sectors, such as food, retail, consumer goods, pharmaceuticals, and others. The continued rise in the levels of urbanization, a large expatriate population, and the changing dietary habits of the resident citizens catalyze the demand. Due to the increasing penetration of organized retail formats, such as hypermarkets, supermarkets, and e-commerce, the region's processed and packaged food market is currently exhibiting a solid growth rate.
  • Also, according to the General Authority for Statistics (GASTAT), The country's import of plastic products increased by 18% to 456,000 tons in the second quarter of 2022 from 386,000 tons in 2021 to cater to the increasing demand.
  • However, The price volatility of raw materials on the domestic market due to the market's fluctuating prices for oil and gas has posed a significant difficulty for market vendors since it skews the planning for the cost estimations that the vendors typically recommend for end users. The diminishing profit margins have also held down the investment in technological upgrades brought on by the growing export rivals from other countries worldwide.
  • Unique challenges brought by the COVID-19 pandemic forced many consumers to adopt new purchasing behavior, which made many flexible packaging producers adjust their operations to meet consumer preferences and drive sales. Further, the Russia-Ukraine war has an impact on the overall packaging ecosystem.

Saudi Arabia Flexible Packaging Industry Segmentation

The market study tracks the demand for flexible packaging through the revenue derived from selling bags, pouches, films, and wraps. The study also tracks the effects of regulations and market drivers on growth, along with factors hindering the market growth. The Saudi Arabian Flexible Packaging Market is segmented by material (Plastic, Metal, and Paper), product type (Bags and Pouches, Films and Wraps), and End-Users (Food, Beverages, Healthcare, and Pharmaceutical). The market sizes and forecasts regarding value (USD million) for all the above segments are provided.

By Material
Plastic
Metal
Paper
By Product Type
Bags and Pouches
Films and Wraps
Other Product Types
By End-User
Food
Beverages
Healthcare and Pharmaceutical
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Saudi Arabia Flexible Packaging Market Size Summary

The Saudi Arabian flexible packaging market is experiencing steady growth, driven by increasing demand across various sectors such as food, pharmaceuticals, and retail. The market is characterized by a shift towards convenient and eco-friendly packaging solutions, with oxo-biodegradable polymers gaining traction as a sustainable alternative to traditional plastics. This shift is supported by the growing urbanization, a large expatriate population, and changing dietary habits, which are fueling the demand for flexible packaging in food and consumer goods. The expansion of organized retail formats and the rise in e-commerce are further contributing to the market's growth, as they enhance the distribution and availability of packaged products. However, challenges such as fluctuating raw material costs and environmental concerns regarding plastic disposal pose obstacles to market development.

The flexible packaging industry in Saudi Arabia is moderately fragmented, with numerous local and international players vying for market share. The sector is witnessing increased activity from multinational companies entering the market, often through joint ventures or licensing agreements, to capitalize on the growing demand for packaged food and the opportunity to export duty-free to other Arab countries. The market's growth is also supported by the rising disposable income, which is shifting consumer preferences towards protein-based diets and increasing meat and dairy consumption. Despite the challenges posed by price volatility and global economic factors, the market continues to expand, with strategic partnerships and investments in recycling initiatives further bolstering its development.

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Saudi Arabia Flexible Packaging Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Value Chain Analysis

    3. 1.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.3.1 Threat of New Entrants

      2. 1.3.2 Bargaining Power of Buyers

      3. 1.3.3 Bargaining Power of Suppliers

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

    4. 1.4 Assessment of the Impact of COVID-19 on the Market

  2. 2. Global Flexible Packaging Market Overview

    1. 2.1

  3. 3. MARKET SEGMENTATION

    1. 3.1 By Material

      1. 3.1.1 Plastic

      2. 3.1.2 Metal

      3. 3.1.3 Paper

    2. 3.2 By Product Type

      1. 3.2.1 Bags and Pouches

      2. 3.2.2 Films and Wraps

      3. 3.2.3 Other Product Types

    3. 3.3 By End-User

      1. 3.3.1 Food

      2. 3.3.2 Beverages

      3. 3.3.3 Healthcare and Pharmaceutical

Saudi Arabia Flexible Packaging Market Size FAQs

The Saudi Arabia Flexible Packaging Market is projected to register a CAGR of 3.9% during the forecast period (2024-2029)

Flexpack (ENPI GROUP), Saudi Printing & Packaging Company, Napco National, Printopack and Gulf East Paper & Plastic Industries LLC are the major companies operating in the Saudi Arabia Flexible Packaging Market.

SAUDI ARABIA FLEXIBLE PACKAGING MARKET Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)