Saudi Arabia Foodservice Disposable Packaging Market Size (2024 - 2029)

Saudi Arabia Foodservice Disposable Packaging Market Analysis

The Saudi Arabia Foodservice Disposable Packaging Market size is estimated at USD 1.83 billion in 2024, and is expected to reach USD 2.46 billion by 2029, growing at a CAGR of 6.13% during the forecast period (2024-2029).

• The food service disposable segment in the country witnessed substantial growth, fueled by a rising appetite for ready-to-eat foods. With consumers leading increasingly hectic lives, there is a notable shift toward takeout and catering services. To capitalize on this, players in food service disposable packaging are innovating, aiming to capture consumer interest and further propel market expansion. Moreover, the escalating demand for home deliveries and the enduring popularity of outdoor dining bolstered this growth trend. The sector is also expanding its reach by exploring sustainable packaging solutions to meet the growing environmental concerns among consumers.
• One of the key market drivers is the growing demand for consumer convenience. The food service packaging sector is adapting to meet these evolving preferences. With busy schedules, working professionals are increasingly valuing convenience, especially in their food choices. Additionally, manufacturers are now designing packaging with an eye on post-usage disposal, leading to a trend of easily disposable packaging solutions. This shift addresses consumer needs and aligns with environmental considerations as companies strive to reduce their ecological footprint by developing sustainable and biodegradable packaging options.
• This demand is further fueled by a growing supply side, as malls and supermarkets increasingly stock their shelves with ready-to-eat meals, leveraging the nation's well-established distribution and infrastructure network. Several new takeaway restaurants and delivery apps have emerged, amplifying the need for on-the-go packaging. In a notable move in June 2023, Taker unveiled a cutting-edge food delivery app tailored for the Saudi market. The app, available on both Google Play and the App Store, not only facilitates deliveries but also offers digital, marketing, and logistical support to restaurants, aiding them in boosting their profits. As the trend of takeaway deliveries gains momentum, the demand for convenient food packaging is set to rise.
• Several global restaurant chains are focused on expanding business by opening new stores in the country. For instance, in July 2023, Rebel Foods introduced two cloud kitchens in Riyadh. The company aims to open 60 internet restaurants across the city in the following years and plans to expand to other cities such as Jeddah, Dammam, and Khobar. Such constant opening of food service restaurants and cloud kitchens nationwide is anticipated to directly impact the demand for disposable packaging options such as boxes, cartons, bags, cups, and wraps in the coming years.
• As concerns over packaging waste, notably from plastics, intensify, regional governments are implementing regulations to mitigate environmental damage and bolster waste management. While these efforts are laudable, they present a hurdle to the growth of the market. With mounting concerns about the ecological and health repercussions of plastic packaging, the market faces potential constraints. Mandates pushing for a transition from single-use plastics and a rising demand for eco-friendly options, such as fiber and paper-based products, further challenge the market's trajectory. These regulations often require significant investment in new technologies and processes, which can strain resources and impact profitability. Companies must navigate these regulatory landscapes while innovating to meet sustainability goals, adding complexity to market operations.

Saudi Arabia Foodservice Disposable Packaging Industry Segmentation

Food service disposables refer to any disposable, single-use products, containers, devices, or equipment designed for packaging, storing, portioning, serving, or dispensing food and beverages, typically for immediate consumption. The study on Saudi Arabia's disposable packaging Market tracks high-level demands for bottles, bags and wraps, trays and plates, cutlery, stirrers, straws, lids, and other products across the end-user segments while tracking the market size in terms of revenue.

The Saudi Arabian food service disposable packaging market is segmented into packaging formats (paper-based (cups and lids, boxes and cartons, and other paper-based products), plastic (bottles, bags and wraps, trays and plates, cutlery, stirrers, and straws), aluminum foil, and tissues, and end-user (HoReCa, retail establishments, institutional, and other end users). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.