Saudi Arabia Plastic Caps And Closures Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 1.29 Billion |
| Market Size (2029) | USD 1.74 Billion |
| CAGR (2024 - 2029) | 6.17 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Saudi Arabia Plastic Caps and Closures Market Analysis
The Saudi Arabia Plastic Caps And Closures Market size is estimated at USD 1.29 billion in 2024, and is expected to reach USD 1.74 billion by 2029, growing at a CAGR of 6.17% during the forecast period (2024-2029). In terms of shipment volume, the market is expected to grow from 25.04 billion units in 2024 to 32.78 billion units by 2029, at a CAGR of 5.53% during the forecast period (2024-2029).
The study of Saudi Arabia's plastic caps and closure market focuses on significant packaging formats, including bottles, jars, and containers. It also delves into the demand and revenue generated from sales across various end-user industry verticals.
- Key market drivers include the rising adoption of oxo-degradable plastics, heightened demand from diverse industries, technological advancements enhancing barrier solutions, and the introduction of active and intelligent packaging to meet consumer demands. Saudi Arabia stands out as a leading market for plastic packaging in the Middle East, driven by its substantial consumer base and diverse industrial landscape, excluding the oil and gas sector.
- Within Saudi Arabia, the food and beverage sector is witnessing notable growth, outpacing other industries. The Saudi Arabian Ministry of Trade and Industry highlights the beverage and soft drink segment as a mature sector, dominating the country's food and beverage exports.
- The market is primarily attributed to rapid urbanization, which usually translates to increased consumer spending and production of consumer goods, a large expatriate population, and the changing dietary habits of resident citizens. Further, the country has been implementing several initiatives and regulatory reforms, such as Saudi Vision 2023 and the National Industrial Development and Logistics Program (NIDLP), that may increase regional industrial production. This is expected to create considerable demand for packaging products.
- On the supply side, the country is rich in raw materials (for rigid plastic packaging) owing to its oil and gas industry. Saudi Arabia is one of the largest producers of polyolefins in the Middle Eastern region. Additionally, the country's high consumption of plastic packaging products is witnessing the establishment of new production plants and lines to boost the production capacity of caps and closures.
- Challenges such as plastic recycling, the push for sustainable packaging, stringent government regulations, and competition from flexible plastic packaging are impeding market growth in Saudi Arabia. Packaging waste is escalating with the rise in takeaway and ready-to-eat food demand. To combat this, the Saudi Arabian government has enacted laws to curb plastic waste, prompting packaging companies to pivot towards biodegradable alternatives.
Saudi Arabia Plastic Caps and Closures Market Trends
Polyethylene to Witness Growth in the Industry
- Polyethylene, a prevalent consumer plastic, is found in many products. As a thermoplastic, it boasts the unique ability to transition from a solid to a liquid state repeatedly. Depending on the processing conditions, polyethylene can yield diverse grades, catering to various applications. It's typically categorized into LDPE, LLDPE, and HDPE, among other significant compounds.
- Polyethylene's leakproof qualities and impermeability to water vapor make it a significant choice for heat-sealing. This feature lets it snugly wrap around products, creating an airtight seal. Beyond its protective attributes, polyethylene stands out for its versatility. It offers protection and serves as a canvas for advertising, entirely complementing the product.
- In December 2023, Sipchem, the Sahara International Petrochemical Company, was granted a USD 500 million (SAR 1.87 billion) EPC contract to expand the ethylene cracker plant at SEPC (Saudi Ethylene and Polyethylene Company). The company announced that it aims to complete the project's expansion and commence production in the first half of 2026. This expansion is projected to boost Olefin's output by approximately 18% and positively impact Sipchem's financial performance.
- Further, in January 2024, Lummus Technology, a global leader in process technologies and energy solutions, secured a contract from the Saudi Ethylene and Polyethylene Company (SEPC), a Joint Venture of Tasnee Sahara Olefins Company (TSOC). The agreement entails designing and supplying two cutting-edge Short Residence Time ethylene heaters for SEPC's Al-Jubail, Saudi Arabia facility. This project promises to ramp up ethylene production and underscores SEPC's dedication to enhancing energy efficiency and reducing emissions.
- According to General Authority for Statistics (Saudi Arabia), revenue of manufacture of rubber an plastic products in Saudi Arabia in 2021 was USD 4.03 billion and is expected tp reach USD 5.83 billion in 2024. Plastics like polyethylene can be conveniently recycled by tossing them into recycling bins, rendering them more eco-friendly than flexible alternatives. Furthermore, the expanding adoption of packaging caps and closures across multiple industries bolsters its market demand.
Beverage Sector is Expected to Drive the Market Growth
- The caps and closure market in the food and beverage sector is propelled by the rising demand for packaging solutions to extend food products' shelf life. This trend is particularly pronounced with carbonated beverages, water, juices, sports drinks, and nutritional beverages. The surge in demand is further fueled by an increasing number of nuclear families and a growing preference for convenience foods.
- Consumers gravitate towards plastic caps and closures beverage packaging due to its robustness, barrier properties, and durability. This packaging offers enhanced strength and maintains the flavor integrity of the beverages. Its recyclability is a significant environmental benefit, further reducing pollution.
- Further, according to the General Authority for Statistics (Saudi Arabia), the industry revenue for manufacturing beverages in Saudi Arabia in 2023 was USD 3.12 billion and is expected to reach USD 3.13 billion in 2024. Beverages, such as the soft drinks industry in Saudi Arabia, are surging. This uptick is fueled by the proliferation of non-alcoholic beverages in recent years, catering to a demographic that seeks the essence of drinks without the side effects of alcohol.
- In January 2024, Saudi Arabia announced plans to inaugurate a store in Riyadh, marking the first legal alcohol outlet in over seven decades. This establishment, situated in Riyadh's Diplomatic Quarter, will exclusively cater to a select group of non-Muslim expatriates, primarily diplomatic personnel. This might push the market for caps and closures in Saudi Arabia.
- The rising health consciousness among consumers drives the demand for fruit juices and flavored drinks. Additionally, the influence of sports professionals and fitness enthusiasts is boosting the demand for energy and sports drinks, further propelling Saudi Arabia's caps and closures market.
Saudi Arabia Plastic Caps and Closures Industry Overview
The Saudi Arabia Plastic Caps and Closures market is fragmented, with many domestic and significant players, such as Takween Advanced Industries, 3P Gulf Group, Tetra Pak Global, Arabian Plastics Industrial Company Limited (APICO), ALPLA Group, and more. Companies operating in the region are focused on expanding their business through innovations, collaborations, acquisitions, mergers, etc.
- In June 2024, Al Kharj City, closely linked to Riyadh's business hub, celebrated opening a new factory for the Arabian Plastic Industrial Company (APICO). Situated in Al-Kharj Industrial City, the new factory spans 34,000 sq. mts., marking a pivotal moment for APICO. The initial phase saw the completion of a 12,000 sq. mts. factory building equipped with blow molding and injection molding lines for producing various plastic products. These lines are slated for expansion to encompass APICO's complete product line, including the new PET range.
Saudi Arabia Plastic Caps and Closures Market Leaders
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Tetra Pak Global
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Arabian Plastic Industrial Company Limited (APICO)
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3P Gulf Group
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ALPLA Group
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Takween Advanced Industries
*Disclaimer: Major Players sorted in no particular order
Saudi Arabia Plastic Caps and Closures Market News
- June 2024 - Zahrat Al-Waha Trading Co. has commenced the operation and commercial sales of two plastic bottle cap production lines, as per an announcement on Tadawul. This move is a strategic part of their capital expansion initiative, designed to ramp up production capacity in response to growing market demands and evolving customer requirements. The multifaceted plan aims to bolster its presence in the local and international plastics market, broaden and enhance revenue streams, bolster profitability and financial stability, enhance shareholder equity, and streamline operational costs.
- June 2024 - Nova Water has unveiled a groundbreaking initiative: a water bottle crafted entirely from recycled materials. This move echoes the ambitions outlined in Saudi Arabia's Vision 2030 and the Saudi Green Initiative, underlining a solid commitment to sustainability. By embracing these new eco-friendly bottles, Nova Water is championing sustainability and actively contributing to Saudi Arabia's circular economy and its efforts to reduce CO2 emissions. The bottles' distinct green aesthetic on labels, caps, and cases seamlessly complements Nova Water's current product lineup.
Saudi Arabia Plastic Caps and Closures 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
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4.2 Industry Attractiveness - Porter's Five Forces Analysis
- 4.2.1 Bargaining Power of Suppliers
- 4.2.2 Bargaining Power of Buyers
- 4.2.3 Threat of New Entrants
- 4.2.4 Threat of Substitute Products
- 4.2.5 Intensity of Competitive Rivalry
- 4.3 Industry Value Chain Analysis
5. MARKET DYNAMICS
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5.1 Market Drivers
- 5.1.1 Demand for Sustainable and Recyclable Caps and Closures
- 5.1.2 Increasing Need for Caps and Closures Across End-User Industry
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5.2 Market Restraints
- 5.2.1 Environmental Concerns Over Recycling and Price Volatility of Raw Materials
6. INDUSTRY REGULATION, POLICY AND STANDARDS
7. MARKET SEGMENTATION
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7.1 By Resin
- 7.1.1 Polyethylene (PE)
- 7.1.2 Polyethylene Terephthalate (PET)
- 7.1.3 Polypropylene (PP)
- 7.1.4 Other Plastic Materials (Polystyrene, PVC, Polycarbonate, etc.)
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7.2 By Product Type
- 7.2.1 Threaded
- 7.2.2 Dispensing
- 7.2.3 Unthreaded
- 7.2.4 Child-resistant
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7.3 By End-User Industry
- 7.3.1 Food
- 7.3.2 Bevrage
- 7.3.2.1 Bottled Water
- 7.3.2.2 Carbonated Soft Drinks
- 7.3.2.3 Alcoholic Beverages
- 7.3.2.4 Juices & Energy Drinks
- 7.3.2.5 Others
- 7.3.3 Personal Care & Cosmetics
- 7.3.4 Household Chemicals
- 7.3.5 Other End-use Industries
8. COMPETITIVE LANDSCAPE
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8.1 Company Profiles*
- 8.1.1 Tetra Pak Global
- 8.1.2 Alpla Group
- 8.1.3 Arabian Plastics Industrial Company Limited (APICO)
- 8.1.4 Saudi Plastic Systems
- 8.1.5 3P Gulf Group
- 8.1.6 Al-Amoudi Closures Mfg.
- 8.1.7 Saudi Can Closure Co. (BeriCap)
- 8.1.8 Takween Industries
9. INVESTMENT ANALYSIS
10. FUTURE OUTLOOK OF THE MARKET
** Subject To AvailablitySaudi Arabia Plastic Caps and Closures Industry Segmentation
The scope of the study characterizes the plastic caps and closures market based on the raw material of the product, including PP, PE, PET, and other raw materials used across various end-user industries such as Food, Pharmaceuticals, Beverage, Cosmetics and Toiletries and more across the country. The research also examines underlying growth influencers and significant industry vendors, all of which help to support market estimates and growth rates throughout the anticipated period. The market estimates and projections are based on the base year factors and arrived at top-down and bottom-up approaches.
Saudi Arabia Plastic Caps and Closures Market is Segmented by Resin(Polyethylene (PE), Polyethylene Terephthalate (PET), Polypropylene (PP), and Other Plastic Materials), by Product Type(Threaded, Dispensing, Unthreaded, Child-Resistant), by End-User Industry (Food, Beverage (Bottled Water, Carbonated Soft Drinks, Alcoholic Beverages, Juices & Energy Drinks, and Others), Personal Care and Cosmetics, Household Chemicals, and Other End-User Industries). The report offers market forecasts and size in volume (Units) and value (USD) for all the above segments.
| By Resin | Polyethylene (PE) | |
| Polyethylene Terephthalate (PET) | ||
| Polypropylene (PP) | ||
| Other Plastic Materials (Polystyrene, PVC, Polycarbonate, etc.) | ||
| By Product Type | Threaded | |
| Dispensing | ||
| Unthreaded | ||
| Child-resistant | ||
| By End-User Industry | Food | |
| Bevrage | Bottled Water | |
| Carbonated Soft Drinks | ||
| Alcoholic Beverages | ||
| Juices & Energy Drinks | ||
| Others | ||
| Personal Care & Cosmetics | ||
| Household Chemicals | ||
| Other End-use Industries |
Saudi Arabia Plastic Caps and Closures Market Research FAQs
How big is the Saudi Arabia Plastic Caps And Closures Market?
The Saudi Arabia Plastic Caps And Closures Market size is expected to reach USD 1.29 billion in 2024 and grow at a CAGR of 6.17% to reach USD 1.74 billion by 2029.
What is the current Saudi Arabia Plastic Caps And Closures Market size?
In 2024, the Saudi Arabia Plastic Caps And Closures Market size is expected to reach USD 1.29 billion.
Who are the key players in Saudi Arabia Plastic Caps And Closures Market?
Tetra Pak Global, Arabian Plastic Industrial Company Limited (APICO), 3P Gulf Group, ALPLA Group and Takween Advanced Industries are the major companies operating in the Saudi Arabia Plastic Caps And Closures Market.
What years does this Saudi Arabia Plastic Caps And Closures Market cover, and what was the market size in 2023?
In 2023, the Saudi Arabia Plastic Caps And Closures Market size was estimated at USD 1.21 billion. The report covers the Saudi Arabia Plastic Caps And Closures Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Saudi Arabia Plastic Caps And Closures Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Saudi Arabia Plastic Caps and Closures Industry Report
Statistics for the 2024 Saudi Arabia Plastic Caps And Closures market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Saudi Arabia Plastic Caps And Closures analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
