Market Overview
| Study Period | 2019 - 2030 |
|---|---|
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Volume (2025) | 1.62 Million tonnes |
| Market Volume (2030) | 2 Million tonnes |
| Growth Rate (2025 - 2030) | 4.38% CAGR |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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Saudi Arabia Paper And Paperboard Packaging Market Analysis by Mordor Intelligence
The Saudi Arabia paper and paperboard packaging market size reached 1.62 million tonnes in 2025 and is forecast to climb to 2 million tonnes by 2030, reflecting a 4.38% CAGR over the period. Government-led economic diversification, a 54% jump in industrial investments to SAR 1.5 trillion (USD 0.39 trillion) in 2024, and SAR 41.2 billion (USD 10.9 billion) in manufacturing FDI, elevate demand for protective and retail-ready formats across food, e-commerce, and chemical export supply chains.[1]Ministry of Investment of Saudi Arabia, “Foreign Direct Investment Report,” misa.gov.sa Corrugated boxes hold structural primacy because food and beverage producers account for 57.31% of end-use consumption, while folding cartons capture premium positioning as the fastest-growing format at 6.21% CAGR on the back of SKU proliferation. Vision 2030’s 30-year income-tax waivers for regional headquarters lower operating costs for international converters, yet imported kraft-liner volatility and rising power tariffs press margins for local mills. Recycled fiber uptake is accelerating at 5.16% CAGR, but virgin grades still dominate because food-grade rules constrain circular options in direct-contact applications.
Key Report Takeaways
- By packaging type, corrugated boxes captured 45.52% of the Saudi Arabia paper and paperboard packaging market share in 2024.
- By end-user industry, the Saudi Arabia paper and paperboard packaging market size for e-commerce and retail applications is projected to grow at a 5.92% CAGR between 2025-2030.
- By material source, virgin fiber captured 70.86% of the Saudi Arabia paper and paperboard packaging market share in 2024.
- By packaging level, the Saudi Arabia paper and paperboard packaging market size for tertiary packaging is projected to grow at a 5.65% CAGR between 2025-2030.
Saudi Arabia Paper And Paperboard Packaging Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Food and Beverage demand surge for corrugated transit packaging | +0.8% | National, concentrated in Riyadh, Jeddah, Dammam | Medium term (2–4 years) |
| Plastic-ban policies boosting paper conversion volumes | +0.6% | National, with early implementation in major cities | Short term (≤ 2 years) |
| E-commerce same-day delivery fueling lightweight mailers | +0.7% | Urban centers: Riyadh, Jeddah, Khobar | Medium term (2–4 years) |
| FMCG SKU proliferation requiring short-run digital cartons | +0.5% | National, manufacturing hubs in Eastern Province | Long term (≥ 4 years) |
| Vision-2030 localization incentives for paper converters | +0.9% | National, special economic zones | Long term (≥ 4 years) |
| Expansion of date-export cluster around Al-Qassim | +0.4% | Al-Qassim region, export corridors | Medium term (2–4 years) |
| Source: Mordor Intelligence | |||
Food and Beverage Demand Surge for Corrugated Transit Packaging
Robust population growth and rising disposable incomes sustain double-digit volume gains in packaged foods sold across supermarket, hypermarket, and quick-service channels. Non-oil exports hit SAR 458 billion (USD 122 billion) in 2023, with the food segment benefiting from 13.4% export expansion in Q1 2025 that necessitates moisture-resistant corrugated transit formats for longer shipping distances.[2]General Authority for Statistics, “Quarterly GDP Report Q2 2025,” stats.gov.sa Food processors widening halal-certified lines for GCC and African markets require barrier-coated liners that withstand ambient storage, a capability that lifts local demand for high-performance corrugating medium. Government food-security projects incentivize domestic cultivation of tomatoes, poultry, and dairy, amplifying secondary packaging volumes. Temperature-controlled logistics now reach 90% of Riyadh supermarkets, further advancing corrugated use. The combined effect underpins the Saudi Arabia paper and paperboard packaging market as a strategic growth engine for converters servicing food clients.
Plastic-Ban Policies Boosting Paper Conversion Volumes
Municipal bans on single-use plastic bags in Riyadh and Jeddah accelerate substitution to kraft paper carriers as retailers seek compliant options. Saudi Investment Recycling Company’s 81% recycling target pushes brand owners toward fiber-based formats compatible with municipal recovery streams. QSR chains including AlBaik shifted in-store cups and wraps to paper-lined composites, raising short-run flexo orders for domestic converters. Government eco-labeling pilots reward products in recyclable paperboard, nudging FMCG portfolios toward folding cartons. Early adopters gain shelf visibility, reinforcing paper’s environmental halo. The regulatory momentum shortens payback periods for new curtain coater and aqueous-barrier lines, sustaining capital expenditure by leading mills.
E-commerce Same-Day Delivery Fueling Lightweight Mailers
Online shoppers surpassed 19 million in 2025, and same-day services by Jahez and HungerStation favor gusseted mailers with reinforced paperboard inserts that resist drop impact yet remain cost-light. Automated fulfillment in Riyadh demands packaging compatible with vision-guided pick-and-place robots, prompting suppliers to develop flatter mailer footprints. Digital sellers use variable data printing to embed QR-based returns labels, a trend that boosts demand for inkjet-ready substrates. Consumers reward unboxing experiences that combine sustainable materials with brand storytelling, nudging box-on-demand systems toward 100% recycled liner constructions. The resulting design experimentation propels incremental tonnage across lightweight grades.
FMCG SKU Proliferation Requiring Short-Run Digital Cartons
Industrial establishment count rose 55.6% to 11,868 facilities in 2024, enabling domestic production of niche health snacks, halal cosmetics and craft beverages. Each micro-category introduces seasonal flavors and trial packs needing frequent artwork refreshes; digital toner presses allow converters to profitably run 1,000-carton lots. Brand owners value serialized QR codes for loyalty campaigns, driving up adoption of high-ink-coverage designs on GC1 board. Converters invest in laser die-cutters that trim make-ready time, ensuring two-day turnarounds. The virtuous cycle magnifies folding-carton tonnage even though average grammage declines, sustaining revenue growth.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Imported kraft-liner price volatility | -0.5% | National, port cities most affected | Short term (≤ 2 years) |
| Power-tariff hikes raising mill OPEX | -0.4% | National, energy-intensive facilities | Medium term (2–4 years) |
| High freshwater footprint amid water-scarcity | -0.6% | National, inland manufacturing centers | Long term (≥ 4 years) |
| Slow adoption of recycled fiber due to food-grade hurdles | -0.3% | National, food packaging applications | Medium term (2–4 years) |
| Source: Mordor Intelligence | |||
Imported Kraft-Liner Price Volatility
Global pulp supply tightness lifted kraft-liner spot prices 18% between 2023 and 2024, translating into margin compression for Saudi converters who import 92% of their linerboard. Hedging instruments remain limited on the regional commodity exchanges, exposing balance sheets to FX swings. Middle East Paper Company’s 7% net loss in 2024 showcases how price spikes erode profitability even with integrated recycling capacity. Smaller plants resort to shorter customer contracts or pass-through surcharges, risking volume loss to plastic alternatives when box prices surge.
Power-Tariff Hikes Raising Mill OPEX
Energy subsidy reforms lifted industrial electricity rates 11% in 2025, raising per-tonne production costs for mills that consume 800–1,000 kWh of power and 12 GJ of steam to dry paperboard. Biomass boilers can offset exposure, yet capital outlays strain leverage metrics during weak linerboard cycles. Renewable PPAs remain embryonic, leaving mills to absorb volatility until grid-scale solar matures.
Segment Analysis
By Packaging Type: Corrugated Dominance Drives Transit Solutions
Corrugated boxes generated 45.52% of the Saudi Arabia paper and paperboard packaging market size in 2024 as retailers, food processors and e-commerce shippers sought rugged, stackable formats for palletized distribution.[3]Saudi Press Agency, “Saudi Arabia Records 54% Surge in Industrial Investments,” spa.gov.sa Folding cartons are closing the gap by registering 6.21% CAGR to 2030 thanks to digital printing flexibility that suits frequent artwork changes. The Saudi Arabia paper and paperboard packaging market continues to rely on virgin kraft fluting for heavy produce and industrial chemicals, yet high-performance recycled liners are gaining share in lighter fruit crates. Packages integrating water-based barrier coatings now appeal to dairy brands pursuing plastic-free aseptic alternatives.
Growing investments in multi-color flexo and high-speed gluers position local players to capture value from demand nuances, such as single-piece die-cut boxes for GCC cross-border exports. Liquid cartons, while smaller in tonnage, receive capital inflows from firms like Elopak seeking to localize production under Vision 2030 and thereby shorten lead times for dairy co-packers. Paper sacks benefit from infrastructure projects that ship bulk cement and gypsum across desert corridors, expanding volume beyond consumer channels. The expanded format mix presents converters with diversification options while preserving core corrugated scale economies, sustaining the Saudi Arabia paper and paperboard packaging market as a broad-based growth vehicle.
Note: Segment shares of all individual segments available upon report purchase
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By End-User Industry: Food Sector Leadership Amid E-commerce Surge
Food and beverage held 57.31% share of the Saudi Arabia paper and paperboard packaging market size in 2024, anchored by domestic processing capacity and the Kingdom’s growing role as a date and poultry exporter. Online retail is the fastest-expanding customer vertical at 5.92% CAGR, driving demand for dimension-optimized mailing cartons that slash void space and freight cost. The Saudi Arabia paper and paperboard packaging market gains resilience from cross-sector pull: pharmaceuticals require tamper-evident cartons, while personal-care producers favor foil-laminated boxes for premium positioning.
Industrial users, including petrochemical and construction materials, source heavy-duty triple-wall corrugated for chemical drums and bulk bags, a niche that commands higher margins due to stringent burst strength specs. Quick-service restaurants pivot to grease-resistant wraps and clamshells as plastic bans tighten, reinforcing volume in specialty grease-barrier papers. Diversification across end-users cushions converters against cyclical shocks in any single sector while maintaining a food-centric revenue core.
By Material Source: Virgin Fiber Leads Despite Recycling Push
Virgin fiber contributed 70.86% of 2024 tonnage because regulatory limits on recycled content in direct-food applications favor bleached kraft and virgin testliner grades. Strength retention and appearance standards required by premium snacks and confectionery bolster virgin demand. Recycled fiber’s 5.16% CAGR through 2030 hinges on improved de-inking and odor-removal technology, along with source-separated municipal collection programs expanding versus today’s 15% national recycling rate. The Saudi Arabia paper and paperboard packaging market size attributable to hybrid fiber constructions is widening, where outer virgin plies sandwich recycled cores to balance performance and sustainability.
Policy instruments include producer-responsibility fees scheduled for 2026 that reward recycled content, encouraging mills to add OCC pulping lines. Brand-owner commitments to 30% recycled content in shipping boxes by 2030 also nudge transit packaging grades first, before filtering into retail cartons as food-grade hurdles ease. Capital requirements for odor-barrier coatings and delamination-free lamination remain barriers to small-scale adopters, implying consolidation around well-capitalized mills.
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By Packaging Level: Secondary Applications Drive Volume Growth
Secondary formats master cartons, display boxes, and shelf-ready trays captured 61.54% share in 2024 because Saudi distributors rely on bulk shipments across 1,000 km trade corridors, demanding robust yet printable outer packs. Tertiary packaging is set to record 5.65% CAGR to 2030 as palletisation and automated warehousing proliferate under the National Industrial Development and Logistics Program. The Saudi Arabia paper and paperboard packaging market benefits from modern 3-PL operators adopting corner-post reinforced pallets and slip sheets that raise unit loads per truck.
Primary packaging growth decelerates as lightweighting squeezes grammage even though unit counts rise, underscoring revenue reliance on the secondary tier. Innovations such as glue-free crash-lock bases shorten line speeds for co-packers while minimizing materials. Meanwhile, the rise of club-store multipacks propels litho-laminated secondary cartons that blend premium graphics with transit strength, offering converters a margin uplift versus plain brown shippers. Overall, packaging-level dynamics reward plants geared for high-variation finishing and fast set-ups.
Competitive Landscape
Saudi Arabia paper and paperboard packaging market competition is moderate, with the top five players accounting for roughly 52% of installed containerboard capacity in 2024. Middle East Paper Company leads domestic kraftliner output at 450,000 tonnes per year, yet net losses in 2023–2024 underline the profit pressure of imported fiber cost volatility. Al-Madina Printing deploys HP PageWide digital presses to capture short-run carton jobs, differentiating on turnaround speed.
International entrants intensify rivalry: WestRock’s 2024 MOU with Saudi Industrial Development Fund paves the way for a 200,000-tonne recycled containerboard mill, bringing global expertise in lightweight high-ring-crush grades. Elopak targets 500 million annual liquid carton capacity by 2027 to serve dairy majors seeking local sourcing. These moves accelerate technology infusion in inline flexo-folder gluers, automated palletizers, and water-based barriers, raising the performance bar for domestic incumbents.
Strategic responses include MEPCO’s SAR 700 million (USD 186 million) project to install a 400 tpd recycled containerboard line with anaerobic wastewater treatment to slash freshwater needs. Obeikan leverages ERP-integrated order management to shorten lead times for e-commerce clients. Converters also form alliances with logistics providers to offer vendor-managed inventory, embedding themselves deeper into customer operations. As regulatory sustainability goals escalate, capability gaps between scale leaders and fringe converters widen, pointing toward gradual consolidation that will reshape the Saudi Arabia paper and paperboard packaging market over the next decade.
Saudi Arabia Paper And Paperboard Packaging Industry Leaders
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Gulf Carton Factory Company
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Eastern Pak Limited
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United Carton Industries Company (UCIC)
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Gulf East Paper & Plastic Industries LLC
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Obeikan Investment Group
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- May 2025: Saudi Print & Pack 2025 confirmed for May 12-15 in Riyadh, featuring barrier-coating demos and AI-driven quality-inspection,
- March 2025: General Authority for Statistics reported 3.9% real GDP growth in Q2 2025 versus 2024, with non-oil exports up 13.4% in Q1 2025, bolstering packaging demand.
- September 2024: Industrial investments soared 54% to SAR 1.5 trillion after expatriate fee waivers, lifting future box and carton volumes.
- August 2024: Ministry of Investment released updated Regional Headquarters Program guide granting 30-year zero tax rates to manufacturers setting up in Saudi Arabia, directly benefiting global paper converters.
Saudi Arabia Paper And Paperboard Packaging Market Report Scope
Various end-user industries rely on paper and paperboard for the packaging of different products. With numerous grades available, paperboard packaging is adaptable. Containers predominantly use paperboard due to its favorable properties. The journey of paperboard, from pulping and optional bleaching to refining, sheet forming, drying, calendaring, and winding, signifies the intricate process of paper manufacturing. Paper packaging materials stand out for their ease of reuse and recycling, especially when juxtaposed with metals and plastics. This inherent recyclability and reusability bolster the perception of paper packaging as both eco-friendly and cost-effective.
The Saudi paper and paperboard packaging market is segmented by type (folding cartons, corrugated boxes, and other types) and end-user verticals (food and beverage, healthcare, personal care and household care, industrial, and other end-user verticals). The report offers market forecasts and size in volume (units) for all the above segments.
By Packaging Type
| Folding Cartons |
| Corrugated Boxes |
| Liquid Cartons |
| Paper Bags and Sacks |
| Other Packaging Types |
By End-user Industry
| Food and Beverage |
| Healthcare and Pharmaceuticals |
| Personal Care and Household Care |
| Industrial Goods |
| E-commerce and Retail |
| Other End-user Industries |
By Material Source
| Virgin Fiber |
| Recycled Fiber |
By Packaging Level
| Primary Packaging |
| Secondary Packaging |
| Tertiary Packaging |
| By Packaging Type | Folding Cartons |
| Corrugated Boxes | |
| Liquid Cartons | |
| Paper Bags and Sacks | |
| Other Packaging Types | |
| By End-user Industry | Food and Beverage |
| Healthcare and Pharmaceuticals | |
| Personal Care and Household Care | |
| Industrial Goods | |
| E-commerce and Retail | |
| Other End-user Industries | |
| By Material Source | Virgin Fiber |
| Recycled Fiber | |
| By Packaging Level | Primary Packaging |
| Secondary Packaging | |
| Tertiary Packaging |
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Key Questions Answered in the Report
How big is the Saudi Arabia paper and paperboard packaging market in 2025?
The market handled 1.62 million tonnes of packaging in 2025 and is projected to reach 2 million tonnes by 2030 at a 4.38% CAGR.
Which end-user consumes most packaging in the country?
Food and beverage processors dominate with 57.31% of demand, reflecting both domestic consumption and export shipments.
What are the key growth opportunities for converters?
Fastest gains lie in folding cartons for FMCG SKUs, lightweight e-commerce mailers and recycled-content transit boxes aligned with the 81% national recycling goal.
How do government incentives affect market dynamics?
Vision 2030’s 30-year tax holidays and local-content mandates attract global players, spur technology transfer and accelerate capacity builds in special economic zones.
Why does recycled fiber adoption remain low?
Strict food-grade safety standards, technical strength limits and consumer perception issues keep virgin fiber at 70.86% share, though new de-inking lines are improving prospects.
Which region is expected to add the most new capacity?
The Eastern Province is favored due to port access, desalinated water availability and proximity to petrochemical customers, supporting several announced greenfield mills.
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