Saudi Arabia Pharmaceutical Packaging Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 1.20 Billion |
| Market Size (2029) | USD 1.66 Billion |
| CAGR (2024 - 2029) | 6.64 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Saudi Arabia Pharmaceutical Packaging Market Analysis
The Saudi Arabia Pharmaceutical Packaging Market size is estimated at USD 1.20 billion in 2024, and is expected to reach USD 1.66 billion by 2029, growing at a CAGR of 6.64% during the forecast period (2024-2029).
- Pharmaceutical packaging primarily refers to items designed for transporting and storing drugs and is made of appropriate materials. Based on the nature of the medicine, packaging materials are chosen from various material types and product types to provide protection, identity, and integrity for the contained drug product.
- Saudi Arabia is the largest economy in the Middle East in terms of GDP and population. Saudi Arabia has the largest pharmaceuticals market in the Gulf Cooperation Council (GCC) region. According to the OECD, by 2030, pharmaceutical spending in Saudi Arabia will reach approximately USD 22,782 million.
- Saudi Arabia is widely well-known as a pharma manufacturing hub in the Middle East. With many domestic and international vendors setting up businesses with local generic manufacturers, there is a scope for robust, secure, organic growth, which is expected to drive demand for packaging.
- The pharmaceutical industry has developed significantly due to numerous circumstances, including Saudi regulatory norm expansion and an emphasis on population health management and invention. Furthermore, rising demand for over-the-counter medications and a more knowledgeable client base are boosting market expansion.
- However, substantial obstacles such as financial limits, a lack of expertise, outdated equipment, a shortage of competent personnel, and an understanding of fundamental healthcare processes limit access to healthcare services. The volatility of raw material costs and stringent regulatory norms and requirements may also hamper the pharmaceutical packaging market. Environmental issues about pharmaceutical packaging raw materials limit business expansion.
- During the COVID-19 pandemic, the Saudi Arabian pharmaceutical packaging market witnessed growth as the demand for pharmaceutical products, such as sanitizers and medicines, increased, driving the market. The need for pharmaceutical packaging in Saudi Arabia increased over the next 2-3 years due to the availability of the COVID-19 vaccine. Various suppliers increased their capacity to satisfy the increased demand.
Saudi Arabia Pharmaceutical Packaging Market Trends
Growing Health Concerns in the Country Drives Market Growth
- Growing health concerns and investments in the healthcare sector of Saudi Arabia are boosting the pharmaceutical packaging market. Saudi Arabia's government announced that it would invest USD 3.4 billion in the immunization and biomedical drugs industry. The move is part of the country's push toward achieving pharmaceutical security and making Saudi Arabia a more prominent hub.
- The opportunities would help achieve the country's pharmaceutical and health security goals and make Saudi Arabia an important center for this promising industry. Saudi Arabia is one of the most attractive markets in the Middle East for multinational corporations. Diversification plans in the country bode well for local and regional businesses, with 'Vision 2030' encouraging the expansion of manufacturing agreements. Multinational corporations are very interested. Key draws include the market's share size, demand sophistication, and favorable epidemiological trends. Given the need to meet the rising demand for established generic treatments, local players are also expected to find a fertile commercial base.
- Saudi Arabia has taken significant steps toward implementing its Vision 2030 healthcare reforms to enhance healthcare effectiveness and quality. Despite this, Saudi Arabia's pharmaceutical industry is unlikely to see significant changes due to challenges concerning patent approval for foreign drugmakers, a discriminatory procurement system, and flawed pricing policies.
- Saudi Arabia's Vision 2030 defined healthcare as one of its key pillars for development and set the goals and strategy for improved healthcare access and quality. Building a world-class infrastructure is crucial. The government turned to the private sector to achieve this with a USD 66 billion investment, making Saudi Arabia the most promising healthcare market in the Middle East.
- Saudi Arabia's Vision 2030 and National Transformation Plan would encourage the expansion of domestic pharmaceutical manufacturing in the country. This would reduce the reliance on imported generic medicines while providing opportunities for exports to neighboring import-reliant states.
- To expand the pharmaceutical industry in the country, the government is taking various initiatives, which have led to the high demand. The GCC countries also aim to develop domestic manufacturing capabilities to reduce import dependency. GCC regulations stipulate that producers in member states are not required to obtain registration or licenses to export to Saudi Arabia; regional producers are effectively given preferential treatment for entry into the Saudi market.
The Bottles Segment is Expected to Hold a Major Market Share
- The bottles segment accounts for a major share in terms of packaging type. This is due to the increased applications of plastics and glass in both solid and liquid oral medications, as bottles provide safety, convenience, and security.
- Glass containers are one of the primary packaging materials used in the pharmaceutical industry. The major reason for glass to hold the majority share in terms of adoption rate is that glass is an inorganic material made up of substances that prevent drug interactions. Increasing regulatory pressure and stringent standards for patient safety, coupled with the implementation of extra measures to reduce the risk of drug interaction, are also driving the market growth. Glass containers are classified into Type I, Type II, Type III, and Type IV glass, based on the degree of chemical/hydrolytic resistance to a water attack.
- Plastic bottle packaging is expected to witness significant growth because of its lightweight and easy-to-handle characteristics, making it easy to carry. Plastic bottle packaging does not break as easily as glass bottles. Plastics also have a greater aesthetic value and a barrier against moisture and air. These characteristics of plastic bottles are expected to boost the segment’s growth.
- Plastics are compatible with many formulations as well. Since plastic containers may be in direct contact with pharmaceutical formulations, they are usually made of materials that do not contain any substance that can alter the efficiency or stability of the formulation or present a risk of toxicity.
- However, the Saudi Standards, Metrology, and Quality Organization (SASO) announced new rules for plastic products in Saudi Arabia. The plastic needs to be OXO-biodegradable, and plastic products entering the country have to be mandatorily registered and approved by SASO for industrial or commercial use. Hence, different government regulations are expected to hinder the growth of plastic bottles in the country, further affecting the overall bottle packaging segment.
Saudi Arabia Pharmaceutical Packaging Industry Overview
The Saudi Arabian pharmaceutical packaging market is fragmented, with the presence of major players like CCL Industries, Napco Group, Becton, Dickinson and Company, Rexam PLC (Ball Corporation), and Sealed Air. Players in the market are adopting strategies such as partnerships and acquisitions to enhance their product offerings and gain a sustainable competitive advantage.
Saudi Arabia Pharmaceutical Packaging Market Leaders
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CCL Industries
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Napco Group
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Becton, Dickinson and Company
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Rexam PLC (Ball Corporation)
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Sealed Air Saudi Arabia
*Disclaimer: Major Players sorted in no particular order
Saudi Arabia Pharmaceutical Packaging Market News
- August 2024: Organon, a healthcare firm, expanded its collaboration with Eli Lilly and Company (Lilly), securing the position of sole distributor and promoter for the migraine medication Emgality in Saudi Arabia and other regions. This expansion underscored Organon’s top-tier commercialization prowess, extensive global presence, and profound expertise in women’s health. This move is poised to advocate for sustainable packaging in pharmaceutical products.
- June 2024: Nova Water launched an innovative initiative: a water bottle made entirely from recycled materials. This initiative aligns with the goals set forth in Saudi Arabia's Vision 2030 and the Saudi Green Initiative, emphasizing a strong dedication to sustainability. By adopting these eco-friendly bottles, Nova Water not only championed sustainability but also played a pivotal role in bolstering Saudi Arabia's circular economy and its endeavors to curtail CO2 emissions. The bottles feature a unique green design on labels, caps, and cases, harmoniously blending with Nova Water's existing product range.
- June 2024: TVM Capital Healthcare, a global firm specializing in healthcare expansion and growth capital, invested USD 35 million in Boston Oncology Arabia, based in Saudi Arabia. Operating from its Riyadh headquarters and a production facility in Sudair Industrial City, Boston Oncology Arabia develops and produces internationally licensed, top-tier therapeutics, supplying essential medicines for critical health conditions. Leveraging already-approved formulations, the company upholds the highest pharmaceutical quality, safety, and efficacy standards.
- May 2024: Arabian Plastic Industrial Co. (APICO), based in Saudi Arabia, opened a new manufacturing facility in Al-Kharj Industrial City. This move underscored APICO's commitment to meeting the surging demand for plastic packaging solutions in the central and eastern regions.
Saudi Arabia Pharmaceutical Packaging Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Market Overview
- 4.2 Industry Value Chain Analysis
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4.3 Industry Attractiveness - Porter's Five Forces Analysis
- 4.3.1 Threat of New Entrants
- 4.3.2 Bargaining Power of Buyers/Consumers
- 4.3.3 Bargaining Power of Suppliers
- 4.3.4 Threat of Substitute Products
- 4.3.5 Intensity of Competitive Rivalry
- 4.4 Assessment of the Impact of Microeconomic Factors on the Market
5. MARKET DYNAMICS
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5.1 Market Drivers
- 5.1.1 Growing Health Concerns in the Country
- 5.1.2 Technological Advancements to Contribute to the Growth of Pharmaceutical Packaging
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5.2 Market Restraints
- 5.2.1 Environmental Concerns Related to Pharmaceutical Packaging of Raw Materials
6. MARKET SEGMENTATION
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6.1 Material
- 6.1.1 Plastic
- 6.1.2 Paper and Paperboard
- 6.1.3 Glass
- 6.1.4 Aluminum Foil
- 6.1.5 Other Materials
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6.2 Type
- 6.2.1 Bottles
- 6.2.2 Ampoules
- 6.2.3 Caps and Closures
- 6.2.4 Cartridges
- 6.2.5 IV (Intravenous) Bags
- 6.2.6 Canisters
- 6.2.7 Medication Tubes
- 6.2.8 Vials
- 6.2.9 Syringes
- 6.2.10 Strip and Blister Packs
- 6.2.11 Pouches
- 6.2.12 Sachets
7. COMPETITIVE LANDSCAPE
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7.1 Company Profiles
- 7.1.1 CCL Industries
- 7.1.2 Napco Group
- 7.1.3 Becton, Dickinson and Company
- 7.1.4 Rexam PLC (Ball Corporation)
- 7.1.5 Sealed Air Saudi Arabia
- 7.1.6 Salman Group (Noor Carton & Packaging Industry)
- 7.1.7 Jabil Inc.
- 7.1.8 Aptar Group
- 7.1.9 Amber Packaging Industries LLC
- *List Not Exhaustive
8. MARKET OUTLOOK
Saudi Arabia Pharmaceutical Packaging Industry Segmentation
Pharmaceutical packaging is used to pack pharmaceutical products to secure them from any external harmful toxins and rays. With the rising population and the increasing workforce, the per capita spending on healthcare services is also growing in the region. Thus, the busy schedule and changing lifestyles are expected to lead to increased adoption of easy-to-swallow medicines, leading to the growth in demand for powdered and liquid forms of medicine. This would create demand for different packaging types, such as pouches and sachets. In turn, it would also act as a catalyst for market growth.
The Saudi Arabian pharmaceutical packaging market is segmented by material (plastic, paper and paperboard, glass, and aluminum foil) and type (bottles, ampoules, caps and closures, cartridges, IV (intravenous) bags, canisters, medication tubes, vials, syringes, strip and blister packs, pouches, and sachets). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| Material | Plastic |
| Paper and Paperboard | |
| Glass | |
| Aluminum Foil | |
| Other Materials | |
| Type | Bottles |
| Ampoules | |
| Caps and Closures | |
| Cartridges | |
| IV (Intravenous) Bags | |
| Canisters | |
| Medication Tubes | |
| Vials | |
| Syringes | |
| Strip and Blister Packs | |
| Pouches | |
| Sachets |
Saudi Arabia Pharmaceutical Packaging Market Research FAQs
How big is the Saudi Arabia Pharmaceutical Packaging Market?
The Saudi Arabia Pharmaceutical Packaging Market size is expected to reach USD 1.20 billion in 2024 and grow at a CAGR of 6.64% to reach USD 1.66 billion by 2029.
What is the current Saudi Arabia Pharmaceutical Packaging Market size?
In 2024, the Saudi Arabia Pharmaceutical Packaging Market size is expected to reach USD 1.20 billion.
Who are the key players in Saudi Arabia Pharmaceutical Packaging Market?
CCL Industries, Napco Group, Becton, Dickinson and Company, Rexam PLC (Ball Corporation) and Sealed Air Saudi Arabia are the major companies operating in the Saudi Arabia Pharmaceutical Packaging Market.
What years does this Saudi Arabia Pharmaceutical Packaging Market cover, and what was the market size in 2023?
In 2023, the Saudi Arabia Pharmaceutical Packaging Market size was estimated at USD 1.12 billion. The report covers the Saudi Arabia Pharmaceutical Packaging Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Saudi Arabia Pharmaceutical Packaging Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Saudi Arabia Pharmaceutical Packaging Industry Report
Statistics for the 2023 Saudi Arabia Pharmaceutical Packaging market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Saudi Arabia Pharmaceutical Packaging analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
