Saudi Arabia Paper and Paperboard Packaging Market Size, Share, Growth, Analysis (2025 - 2030)

Saudi Arabia Paper and Paperboard Packaging Market Trends

Growing Demand from the Food and Beverage Sector

The food and beverage sector represents a primary growth driver for the Saudi Arabia paper and paperboard packaging market, with significant investments and developments shaping the industry landscape. The Saudi Authority for Industrial Cities and Technology Zones (MODON) has demonstrated its commitment to sector growth by signing multiple agreements during the Saudi Food 2023 opening ceremony, aimed at promoting financing solutions and supporting business development. These initiatives are creating substantial opportunities for packaging manufacturers, particularly in meeting the increasing demand for sustainable packaging solutions.

The evolution of consumer preferences and lifestyle changes is significantly impacting packaging requirements in the food service sector. The proliferation of single-person households and the growing popularity of food delivery services have created new demands for specialized packaging solutions. This trend is further supported by the expansion of international coffee chains, with major players like Dunkin' planning to operate more than 600 stores in the Kingdom. Additionally, the hospitality industry's revenue in Saudi Arabia is projected to reach USD 23.10 billion by 2026, indicating substantial growth opportunities for biodegradable packaging products across various food service applications.

Regulations on Plastic-based Packaging Products Contribute to Higher Demand

Recent regulatory developments in Saudi Arabia have significantly influenced the shift towards recyclable packaging solutions. The Gulf Cooperation Council (GCC) Standardization Organization's initiatives to restrict the use of recycled materials in polyethylene bags for food packaging applications have created new opportunities for paper-based alternatives. These regulations have prompted major industry players to adapt their packaging strategies, with companies like Tetra Pak collaborating with recycling companies such as Obeikan Paper Industries and Saudi Top Plastics to implement sustainable packaging solutions.

In alignment with these regulatory changes, significant investments are being made in environmentally friendly packaging solutions. In April 2023, Hotpack announced a SAR 1 billion (USD 266 million) investment in a specialized food packaging program in Saudi Arabia focused on manufacturing biodegradable packaging and recyclable products. The packaging unit will be responsible for producing packaging that meets both environmental standards and market demands. This regulatory-driven transition is further supported by various vendors across the country who are adapting and innovating new packaging solutions, shifting from plastic-based packaging to paper and paperboard packaging to reduce environmental impact.

Increasing Demand for Eco-friendly Solutions and Scope for Printing Innovations Propelling the Growth of the Market

The growing awareness of environmental sustainability has become a significant driver for the Saudi Arabia paper and paperboard packaging market. Climate change concerns and business sustainability requirements have pushed companies to prioritize environmentally friendly packaging solutions. Consumers now demonstrate a clear preference for recyclable packaging, particularly those made from byproducts of existing products, avoiding plastic materials. This shift in consumer behavior has led to increased demand for high-quality designs and performance in packaging that directly affects brand influence and sales outcomes throughout the supply chain.

The Saudi Basic Industries Corporation (SABIC) is actively developing new materials to meet market demand and offer thin packaging products that align with sustainability goals. The materials used in manufacturing have evolved to include various recyclable options, from Solid Bleach Sulphate (SBS) to Coated Recycled Board (CRB) and Corrugated Fiberboard (Microflute). Innovation in printing technologies is also driving market growth, with companies like Shater Al-Ebtekar investing in new equipment such as the Speedmaster XL 106 six-color press with UV coating to enhance productivity in folding carton production. These technological advancements enable manufacturers to offer unconventional shapes, textures, and forms that attract customers while maintaining environmental responsibility.

Segment Analysis: By Type

Corrugated Boxes Segment in Saudi Arabia Paper and Paperboard Packaging Market

The corrugated boxes segment dominates the Saudi Arabia paper and paperboard packaging market, holding approximately 52% market share in 2024. This significant market position is attributed to the segment's versatility and cost-effectiveness in providing viable cardboard packaging solutions across various industries. The growing demand for customer-friendly packages and heightened product protection has boosted corrugated packaging adoption in Saudi Arabia. The segment's prominence is further strengthened by the rapid growth of e-commerce platforms, which primarily use corrugated board boxes for principal packaging. Major players in the market are actively investing in expanding their corrugated packaging capabilities, with companies like Middle East Paper Co. planning significant investments in domestic cardboard production facilities.

Folding Cartons Segment in Saudi Arabia Paper and Paperboard Packaging Market

The folding cartons segment is projected to experience the highest growth rate of approximately 5% during the forecast period 2024-2029. This growth is driven by increasing consumer consciousness regarding sustainable packaging preferences and the segment's ability to offer biodegradable and recyclable solutions. The segment's expansion is further supported by rising demand across various industries, particularly in the food and beverage, healthcare, and personal care sectors. The growth is also attributed to technological advancements in printing and design capabilities, allowing manufacturers to create more visually appealing and functional packaging solutions. Additionally, the segment is benefiting from various sustainability initiatives and regulations promoting eco-friendly packaging alternatives in Saudi Arabia.

Remaining Segments in Saudi Arabia Paper and Paperboard Packaging Market By Type

The other types segment, which includes flexible paper packaging solutions such as sacks, kraft paper packaging, coated paper, paper pouches, and liquid carton packaging, plays a crucial role in serving specific market needs. This segment is particularly important in the food and beverage industry, especially for packaging dried foods, spices, and liquid products. The segment's growth is driven by its versatility in offering customized packaging solutions and its alignment with the increasing demand for sustainable packaging alternatives. The segment continues to evolve with technological advancements and innovations in coating technologies, making it an essential component of the overall paper and paperboard packaging market in Saudi Arabia.

Segment Analysis: By End-User Vertical

Food and Beverage Segment in Saudi Arabia Paper and Paperboard Packaging Market

The Food and Beverage segment dominates the Saudi Arabia paper and paperboard packaging market, commanding approximately 34% market share in 2024. This significant market position is driven by the rapid growth of online food delivery services, increasing demand for ready-to-eat meals, and the expanding tourism sector in Saudi Arabia. The Saudi Authority for Industrial Cities and Technology Zones (MODON) has signed multiple contracts totaling 99,400 square meters to benefit the Kingdom's food and beverage sector, demonstrating the segment's robust growth potential. The segment's strength is further reinforced by the increasing adoption of sustainable paper food packaging solutions by major food and beverage manufacturers, particularly in response to the Kingdom's Vision 2030 sustainability goals. Additionally, the growing coffee culture in Saudi Arabia, evidenced by the expansion of international chains and local establishments, has created substantial demand for paper-based packaging solutions.

Healthcare Segment in Saudi Arabia Paper and Paperboard Packaging Market

The Healthcare segment is emerging as the fastest-growing sector in the Saudi Arabia paper and paperboard packaging market, with an expected growth rate of approximately 6% during 2024-2029. This remarkable growth is primarily driven by Saudi Arabia's healthcare sector transformation and significant government investments, including the allocation of SAR 189 billion (USD 50.4 billion) in the 2023 budget for healthcare industry reforms. The segment's expansion is further supported by the government's initiative to increase private sector participation in the health sector from 20% to 35% by 2030, encompassing the privatization of 290 hospitals and 2,300 primary health centers. The growth is also bolstered by increasing demand for specialized pharmaceutical packaging, medical supplies packaging, and the government's commitment to providing healthcare facilities for millions of pilgrims visiting the Grand Mosque annually.

Remaining Segments in End-User Vertical

The Personal Care and Household Care segment, along with the Industrial segment, constitute significant portions of the Saudi Arabia paper and paperboard packaging market. The Personal Care and Household Care segment is experiencing strong growth driven by the rising demand for sustainable packaging solutions in cosmetics, personal care products, and household items, particularly in the luxury goods sector. The Industrial segment, while smaller in market share, plays a crucial role in supporting the country's growing automotive and electronics sectors, with particular emphasis on packaging solutions for spare parts, components, and electronic goods. Both segments are witnessing increased adoption of eco-friendly packaging solutions, aligning with Saudi Arabia's sustainability initiatives and changing consumer preferences for environmentally responsible packaging options.