Market Trends of Saudi Arabia Plastic Packaging Films Industry
Polyethylene Films to Show a Significant Growth
- Saudi Arabia's dominance in LDPE manufacturing opens up export opportunities for plastic packaging films. With high-quality, locally produced LDPE, Saudi manufacturers can cater to the growing demand for packaging films in other GCC countries and beyond, boosting the overall market growth.
- According to data from the Gulf Petrochemicals and Chemicals Association (GPCA), LDPE (low-density polyethylene) is essential for food and non-food packaging. In GCC, Saudi Arabia is the largest manufacturer of LDPE polymer. The material primarily accounts for 54.9% of the total plastic film used in non-food packaging.
- Saudi Arabia is the world’s largest oil exporter. The country has diversified its tourism, logistics, finance, healthcare, and retail economy, backed by growing investments in technological advancements. Packaging companies have growth opportunities in the Saudi Arabian market due to the rising popularity of sustainable packaging solutions in multiple end-user industries, which has gained traction in the country.
- For instance, in April 2024, SABIC, Saudi Arabia's chemical player, launched its circular packaging initiative, marking a significant stride toward a circular plastic economy in the nation. In collaboration with FONTE, a player in the bakery industry, Napco National introduced bread bags made with certified circular polyethylene (PE). The bags are made by Napco National, using food-contact certified circular polyethylene resin grades from SABIC’s portfolio.
- According to the General Authority for Statistics (Saudi Arabia), by 2025, the number of aggregate food outlets in Saudi Arabia is expected to reach around 90 thousand, up from around 84 thousand in 2023. An increase in food outlets often correlates with a rise in takeaway and delivery services. Polyethylene packaging films are essential for maintaining the freshness and quality of food during transportation, leading to an increased need for such materials.
Understand The Key Trends Shaping This Market
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Healthcare Sector is Anticipated to Witness Significant Growth
- High healthcare spending emphasizes the need for sterile, safe, and reliable packaging for medical and pharmaceutical products. This can drive innovation and growth in the plastic packaging film market as manufacturers develop advanced materials that meet stringent safety and regulatory standards. The International Trade Administration reports that Saudi Arabia comprises 60% of the healthcare expenditures among GCC nations.
- Significant healthcare expenditures can increase research and development (R&D) investments in medical packaging technologies. This can result in the development of new types of plastic films with improved properties, such as enhanced barrier performance, antimicrobial features, and better recyclability.
- Historically, Saudi Arabia heavily relied on imported pharmaceuticals to meet its healthcare demands. However, the nation is now actively pursuing self-sufficiency, aiming to reduce imports by incentivizing local research and development investments for pharmaceutical and therapeutic products.
- According to the World Health Organization, Saudi Arabia's healthcare expenditures totaled USD 49.1 billion in 2020. The report estimates Saudi Arabia's healthcare expenditures in 2027 to be USD 77.1 billion. As healthcare spending rises, so does the demand for medical supplies, pharmaceuticals, and healthcare products. This is expected to drive the demand for more plastic packaging films used in medical and pharmaceutical packaging, ensuring the safety, sterility, and integrity of these products.
