Saudi Arabia Flexible Packaging Market Size

Saudi Arabia Flexible Packaging Market Analysis

The Saudi Arabian flexible packaging market is expected to register a CAGR of 3.9% over the forecast period. The total daily calorie intake for domestic food in Saudi Arabia is 3,130, according to Foodex Saudi. This results in an annual consumption growth rate for the food industry of 18.5%. Through 2023, consumption rates are expected to increase by 55%.

• The growing demand in the pharmaceutical and healthcare sectors, high adoption rates of plastic packaging products in the retail industry, and changing consumer preferences toward convenient packing solutions are driving the growth of the market studied. Conversely, fluctuating raw material costs and environmental concerns over recycling and safe disposal of plastics are expected to challenge the development of the studied market.
• Additionally, as a more eco-friendly substitute for conventional flexible packaging, Oxo-biodegradable polymers are being promoted by several nations. The market for oxo-biodegradable plastic packaging has benefited from this increase. For instance, oxo-biodegradable plastics are now required in Saudi Arabia and the United Arab Emirates. As a result, trading companies operating in Saudi Arabia and the United Arab Emirates are transitioning to oxo-biodegradable plastic packaging options. As a result, the market for plastic packaging that breaks down organically has grown significantly.
• The demand for flexible plastic packaging solutions has been experiencing positive growth across the end-user sectors, such as food, retail, consumer goods, pharmaceuticals, and others. The continued rise in the levels of urbanization, a large expatriate population, and the changing dietary habits of the resident citizens catalyze the demand. Due to the increasing penetration of organized retail formats, such as hypermarkets, supermarkets, and e-commerce, the region's processed and packaged food market is currently exhibiting a solid growth rate.
• Also, according to the General Authority for Statistics (GASTAT), The country's import of plastic products increased by 18% to 456,000 tons in the second quarter of 2022 from 386,000 tons in 2021 to cater to the increasing demand.
• However, The price volatility of raw materials on the domestic market due to the market's fluctuating prices for oil and gas has posed a significant difficulty for market vendors since it skews the planning for the cost estimations that the vendors typically recommend for end users. The diminishing profit margins have also held down the investment in technological upgrades brought on by the growing export rivals from other countries worldwide.
• Unique challenges brought by the COVID-19 pandemic forced many consumers to adopt new purchasing behavior, which made many flexible packaging producers adjust their operations to meet consumer preferences and drive sales. Further, the Russia-Ukraine war has an impact on the overall packaging ecosystem.