Market Trends of Saudi Arabia Glass Packaging Industry
This section covers the major market trends shaping the Saudi Arabia Glass Packaging Market according to our research experts:
Glass Bottles and Containers Expected to Witness Significant Growth
- Economic stability and improvement in the Middle East have led to an increase in disposable income. This factor, coupled with the increasing glass use in the packaging of luxury cosmetics and consumer products, led to a demand for glass bottles and containers. Also, growing awareness of glass's health and environmental benefits led consumers to buy glass bottles.
- Saudi Arabia is witnessing increased demand for soft drinks, especially sugary drinks, and is a significant consumer of glass bottles. Due to the growing obesity concerns among the population, the government imposed an increased tax on beverages due to high soft drink consumption, which resulted in an over 67% increase in soft drink prices. It is expected to drive significant demand for glass bottles and containers in the country.
- Further, the country holds a lower share of glass bottles than other countries in the region due to the alcohol ban. As with drugs, there is a ban on the manufacture, sale, and alcohol consumption in Saudi Arabia. Drinking alcohol is punishable by public flogging, fines, or lengthy imprisonment, accompanied by deportation in some instances. It is one of the significant factors limiting the country's glass bottle growth.
- In addition, in the previous year, SOURCE Global, a Scottsdale, AZ, tech and renewable water company, introduced renewable bottled water made entirely from sunlight and air. The bottle's graphics are applied using screen printing. The back of the bottle highlights the product's unique attributes. The glass-bottled water will eventually be available to guests at The Red Sea Development Project (TRSDP), a regenerative luxury tourism destination along Saudi Arabia's west coast that is underway.
- Glass packaging is vital in the food, beverage, and pharmaceutical industries. With the COVID-19 outbreak, the pharmaceutical industry saw rapid growth with the increased demand for vaccinations and medication. It is expected to fuel the development of the country's glass bottles and containers market over the forecast period.
Understand The Key Trends Shaping This Market
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Pharmaceutical Sector Expected to Witness Significant Growth
- The pharmaceutical companies in the country are actively investing in their manufacturing expansion to meet the increasing demand and new Saudi law that requires a proportion of manufacturing in the country. The pharmaceutical industry is expected to contribute majorly to glass packaging solutions in Saudi Arabia. Saudi Arabia is the largest economy in the Middle East region by GDP and population. Saudi Arabia includes the largest pharmaceuticals market in the Gulf Cooperation Council (GCC) region.
- In January last year, Biocon signed an agreement to commercialize some prescription drugs in the Middle East with Tabuk Pharmaceutical, a Saudi Arabian pharmaceutical company. Tabuk Pharmaceutical Manufacturing Company is based in the Middle East. Under the terms of the agreement, Tabuk Pharmaceuticals holds the marketing authorization for selected Biocon specialty products and is responsible for registration, import, and promotion in Saudi Arabia and other Middle Eastern countries. It aligns leads to the glass packaging growth in the pharmaceutical industry.
- Moreover, according to the chairman of the National Committee for Pharmaceutical Industries, Saudi Arabia is encouraging the manufacturing of pharmaceutical products locally, in line with the Vision 2030 initiative. It is expected to drive vials growth in the country.
- In June last year, as part of Saudi Crown Prince Mohammed Bin Salman's visit to Egypt, it was revealed by both Egypt and Saudi Arabia that 14 cooperation deals totaling USD 7.7 billion had been signed. The agreements covered a variety of industries, and one of them involved pharmaceutical city development by the Egyptian business Pharco in Saudi Arabia.
- The glass packaging for applications such as ampoules and vials over plastic bottles is expected to increase in Saudi Arabia due to the several regulations passed by the government over plastic.
