Market Size of Saudi Arabia Paper And Paperboard Packaging Industry
Study Period | 2019 - 2029 |
Base Year For Estimation | 2023 |
Market Size (2024) | USD 2.22 Billion |
Market Size (2029) | USD 2.84 Billion |
CAGR (2024 - 2029) | 4.24 % |
Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
Saudi Arabia Paper And Paperboard Packaging Market Analysis
The Saudi Arabia Paper And Paperboard Packaging Market size is estimated at USD 2.22 billion in 2024, and is expected to reach USD 2.84 billion by 2029, growing at a CAGR of 4.24% during the forecast period (2024-2029).
- The rising market for customer-friendly packages and heightened product protection is anticipated to expand corrugated packaging as a viable and cost-effective solution in Saudi Arabia. Paper and paper board packaging options, such as corrugated boxes and folding cartons, are some of the versatile and cost-effective formats to package and deliver goods, with diverse possibilities in a visually appealing product.
- The country has a huge consumer base and a range of industrial activities (apart from the oil and gas sector), adding to the rapid need for paper and paperboard packaging. According to the report of the General Authority of Statistics, the overall merchandise value of Saudi Arabia's exports increased by 6.4% in Q4 2022 compared to the same time the previous year. The value of exports amounted to SAR 342.4 (USD 91.23 billion) in Q4. This increase in export trade would consequently push the demand for paperboard packaging, especially from the secondary and tertiary packaging sectors.
- There is a rising need for food delivery apps in Saudi Arabia, and the industry has seen tremendous growth in recent years. Also, the demand for single-serve packs is driven by the increasing number of single-person households and changing consumer lifestyles, which is anticipated to augment the growth of the packaged food market.
- Saudi Vision 2030 aims to privatize its healthcare sector, which is expected to revamp the growth in the industry and is likely to support the healthcare packaging market. Some regional companies have made several agreements to increase the recyclability of their folding cartons. In recent years, Tetra Pak signed its first-ever contract in Saudi Arabia with the OPI paper mill, which can produce 180 thousand tons of duplex board annually and has been recycling approximately 6,000 tons of used cartons annually.
- Although Saudi Arabia is one of the leading markets in the packaging industry in the Middle East, the growing reliance of manufacturers on other countries for raw materials and their fluctuating prices are likely to hamper the growth of the market studied.
Saudi Arabia Paper And Paperboard Packaging Industry Segmentation
Paper and paperboard are frequently used to pack several products in the end-user industry. There are numerous grades of paperboard packaging. Paperboard is the most commonly used material to make containers. In order to manufacture paper, the paperboard requires pulping, optional bleaching, refining, sheet forming, drying, calendaring, and winding. Paper packaging materials can be easily reused and recycled compared to other materials, such as metals and plastics. This is why paper packaging is considered eco-friendly and economical packaging.
The Saudi Arabian paper and paperboard packaging market is segmented by type (folding cartons, corrugated boxes, and other types) and end-user verticals (food and beverage, personal care, healthcare, household care, industrial, and other end-user verticals). The market size and forecasts are provided in terms of value (USD) for all the above segments.
By Type | |
Folding Cartons | |
Corrugated Boxes | |
Other Types |
By End-user Vertical | |
Food and Beverage | |
Healthcare | |
Personal Care and Household Care | |
Industrial | |
Other End-user Verticals |
Saudi Arabia Paper And Paperboard Packaging Market Size Summary
The Saudi Arabia paper and paperboard packaging market is poised for significant growth, driven by the increasing demand for eco-friendly and cost-effective packaging solutions. The market is characterized by a diverse range of applications, including corrugated boxes and folding cartons, which are gaining popularity due to their versatility and visual appeal. The expanding consumer base and industrial activities beyond the oil and gas sector are contributing to the rising need for packaging solutions. The growth of the food delivery industry, coupled with changing consumer lifestyles and the rise of single-person households, is further propelling the demand for packaged food products. Additionally, initiatives like Saudi Vision 2030 are expected to revamp sectors such as healthcare, thereby supporting the growth of healthcare packaging. However, the market faces challenges due to the reliance on imported raw materials and their fluctuating prices.
The market landscape is dominated by key players such as Obeikan Investment Group, Gulf Carton Factory Company, and Middle East Paper Company, who are investing in technological advancements and product innovations to meet the growing demand. The semi-consolidated market structure allows for both new and established firms to compete effectively. The tourism sector's transformation and the increasing retail sales of food and non-alcoholic beverages are expected to further boost the demand for paper-based packaging solutions. Recent strategic acquisitions and investments in sustainable packaging technologies highlight the industry's commitment to addressing environmental concerns while meeting market needs. As the market continues to evolve, the focus on sustainability and innovation remains a central theme, driving the development of the paper and paperboard packaging sector in Saudi Arabia.
Saudi Arabia Paper And Paperboard Packaging Market Size - Table of Contents
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1. MARKET INSIGHTS
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1.1 Market Overview
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1.2 Pestle Analysis - Saudi Arabia
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1.3 Industry Attractiveness - Porter's Five Forces Analysis
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1.3.1 Bargaining Power of Suppliers
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1.3.2 Bargaining Power of Buyers
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1.3.3 Threat of New Entrants
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1.3.4 Threat of Substitutes
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1.3.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 By Type
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2.1.1 Folding Cartons
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2.1.2 Corrugated Boxes
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2.1.3 Other Types
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2.2 By End-user Vertical
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2.2.1 Food and Beverage
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2.2.2 Healthcare
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2.2.3 Personal Care and Household Care
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2.2.4 Industrial
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2.2.5 Other End-user Verticals
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Saudi Arabia Paper And Paperboard Packaging Market Size FAQs
How big is the Saudi Arabia Paper And Paperboard Packaging Market?
The Saudi Arabia Paper And Paperboard Packaging Market size is expected to reach USD 2.22 billion in 2024 and grow at a CAGR of 4.24% to reach USD 2.84 billion by 2029.
What is the current Saudi Arabia Paper And Paperboard Packaging Market size?
In 2024, the Saudi Arabia Paper And Paperboard Packaging Market size is expected to reach USD 2.22 billion.