|Study Period:||2018 - 2026|
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The Saudi Arabia Pharmaceutical Packaging market was valued at USD 3.704 billion in 2020 and is expected to reach USD 4.84 billion by 2026 and work at a CAGR of 4.45% over the forecast period (2021-2026). Moreover, with the outbreak of the Covid-19, the Saudi Arabia Pharmaceutical packaging market is witnessing growth as the demand for pharmaceutical products such as sanitizer, medicines among others, is increasing, which is driving the studied market.
- Saudi Arabia is the largest economy in the Middle-East region, by both GDP and population, Saudi Arabia has the largest pharmaceuticals market in the Gulf Cooperation Council (GCC) region. According to Export.gov, the Kingdom of Saudi Arabia accounts for 59.4 % of the purchases of pharmaceuticals products in the Gulf region. Thus, it has a positive impact on Saudi Arabia Pharmaceutical Packaging Market.
- Under the country’s long-term development plan, Vision 2030, and its shorter-term goals set out in the National Transformation Programme (NTP), which runs through 2020, a significant shift toward locally produced and packaged medicines and drugs is set to take place. Currently, only 30% of the pharmaceutical products are manufactured locally. Therefore, opportunities for pharmaceutical packaging manufacturers are expected to grow significantly. Also, Kingdom od Saudi Arabia is positioning itself to cater to the demands from other GCC and North African countries. The Export to these regions from Saudi Arabia has seen a significant increase in the recent years.
- According to the Ministry of Health (MoH), Saudi Arabia’s pharmaceutical market is set to be worth about USD 9.3 billion by 2021, representing a cumulative pharmaceuticals expenditure of USD 42 billion during 2017-2021.
- Saudi Arabia heavily relies on external markets to meet the ever-growing domestic demand, thus depending on imports. According to the United Nations’ Comtradedatabase on international trade, during 2019, the imports of pharmaceutical products was USD 5.31billion in the country. In addition, the Kingdom’s per capita expenditure on the drug is USD 242, which is 113% higher than the global average, according to Saudi Arabia Pharma market and regulatory report by the Pharmaceuticals Export Promotion Council of India.
Scope of the Report
Pharmaceutical packaging is used for the packing of pharmaceutical products to secure them from any external harmful toxins and rays. The rising population and with the increasing workforce, the increase in per capita spending on health care services is also growing in the region. Thus, the busy schedule and changing lifestyle will lead to increasing consumers’ adoption of easy-to-swallow medicines, leading to the growth in demand for the powdered and liquid form of medicine. This will create a demand for different packaging types such as pouches, and sachets. In return, it will also act as a catalyst for the Saudi Arabia pharmaceutical packaging market.
|Paper & Paperboard|
|Caps and Closures|
|IV (Intravenous) Bags|
|Strip and Blister Packs|
Key Market Trends
Bottles to Drive the Market Growth
- Glass containers are one of the primary packaging materials used in the pharmaceutical industry. The major reasons for glass to hold the majority share in terms of adoption rate is that glass is an inorganic material and is made up of substances that prevent drug interactions. Moreover, increasing regulatory pressure and stringent standards for patient safety, coupled with the implementation of extra measures to reduce the risk of drug interaction, are also driving the market growth. Glass containers are classified into Type I, Type II, Type III, and Type IV glass, based on the degree of chemical/hydrolytic resistance to a water attack.
- The plastic bottle packaging is expected to witness significant growth because of its lightweight and easy-to-handle characteristics, so that it is easy to carry and doesn’t break as easily as glass bottles. Plastics also have a greater aesthetic value and an excellent barrier against moisture and air. These characteristics of plastic bottles are expected to boost the market growth in Saudi Arabia.
- Plastics are also compatible with many formulations as well. Since plastic containers may be in direct contact with pharmaceutical formulations, they are usually made of materials which do not contain any substance that can alter the efficiency or stability of the formulation, or present a risk of toxicity.
- However, recently, The Saudi Standards, Metrology, and Quality Organization (SASO) had recently announced new rules for plastic products in Saudi Arabia. The plastic needs to be OXO-biodegradable, and the plastic products entering the country has to be mandatorily registered and approved with SASO for industrial or commercial uses. Hence, different government regulations are expected to hinder the growth of plastic bottles in the country, further affecting the overall bottle packaging in the pharmaceutical industry in the country.
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Increase in Diabetic Patients is Expected to Boost the Market in the Country
- Non-communicable diseases such as diabetes, cardiovascular disease, and cancer have become the leading cause of death among Saudi Arabia population. This is due to a sedentary lifestyle, obesity, high tobacco use, and poor dietary choices. The World Health Organization (WHO) figures indicate that 33.7% of Saudi Arabia adults are obese, and 68.2% are overweight.
- Moreover, the number of diabetics in the country has also increased recently. Owing to this, government initiatives are driving the usage of healthcare products and services.
- In support to this, as the government policies in the country are biased in favor of domestic producers, providing them with exemptions, including interest-free funding, subsidized utility charges, and no import duties on raw materials and intermediate products, the increased demand for the cures for diseases such as diabetes are expected to create a significant demand for packaging in the country.
The Saudi Arabia pharmaceutical packaging market is moderately fragmented, and competition among the players is increasing. Additionally, because of the concept of 'Domestic production' in the region and 'Saudi 2030 Vision', many players are entering this market. Product launches, high expense on research and development, partnerships and acquisitions, etc. are the prime growth strategies adopted by the companies to gain competitive advantages. Some of the recent developments are:
- February 2020 - Jabil Inc. announced the consolidation of its entire healthcare organization under Jabil Healthcare, under a single umbrella, Nypro with its Orthopedics, Spine, Trauma and associated medical instruments operations. With more than 35 global sites and nearly 20,000 employees serving the leading brands in healthcare, this powerful combination makes Jabil the largest healthcare manufacturing solutions provider.
- August 2020 - Flexible packaging maker Sealed Air Corp. made an equity investment in recycling company Plastic Energy Ltd. Plastic Energy, based in London, has technology to take what are traditionally harder to recycle grades of plastic and turn that into oil, to be reused as feedstock again for plastic or into what it said is a low-carbon fuel.
- April 2020 - Ball Corporation announced the five aluminum packaging plants with the most significant operational and social sustainability improvements, including progress across the areas with the most significant sustainability impact across operations and the promotion of aluminum packaging sustainability credentials and engagement in their local communities.
Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Growing Health Concerns in the Country
4.2.2 Technological Advancements to Contribute to the Growth of Pharmaceutical Packaging
4.3 Market Restraints
4.3.1 Environmental Concerns Related to Pharmaceutical Packaging Raw Materials
4.4 Industry Value Chain Analysis
4.5 Industry Attractiveness - Porter's Five Force Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Impact of COVID-19 on the Saudi Arabia pharmaceutical packaging market
5. MARKET SEGMENTATION
5.1.2 Paper & Paperboard
5.1.4 Aluminum Foil
5.2.3 Caps and Closures
5.2.5 IV (Intravenous) Bags
5.2.7 Medication Tubes
5.2.10 Strip and Blister Packs
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles*
6.1.1 CCL Industries
6.1.2 Napco Group
6.1.3 Becton, Dickinson and Company
6.1.4 Rexam PLC (Ball Corporation)
6.1.5 Sealed Air Saudi Arabia
6.1.6 Salman Group (Noor Carton & Packaging Industry)
6.1.7 Jabil Inc.
6.1.8 Aptar Group
6.1.9 Amber Packaging Industries LLC
7. SAUDI ARABIA PHARMACEUTICAL PACKAGING MARKET OUTLOOK
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Frequently Asked Questions
What is the study period of this market?
The Saudi Arabia Pharmaceutical Packaging Market market is studied from 2018 - 2026.
What is the growth rate of Saudi Arabia Pharmaceutical Packaging Market?
The Saudi Arabia Pharmaceutical Packaging Market is growing at a CAGR of 4.45% over the next 5 years.
Who are the key players in Saudi Arabia Pharmaceutical Packaging Market?
Napco National, Becton, Dickinson and Company, Salman Group, Jabil Inc., Rexam PLC (Ball Corporation) are the major companies operating in Saudi Arabia Pharmaceutical Packaging Market.