Market Trends of Saudi Arabia Foodservice Disposable Packaging Industry
Boxes and Cartons to Hold Major Market Share
- Corrugated boxes and cartons are broadly utilized in Saudi Arabia to deliver food products such as pizzas, burgers, snacks, etc. Folding carton boxes are also gaining significant traction in the country, with food outlets such as McDonald's offering their burgers in such boxes with the company's logo printed on them.
- The boxes and cartons can be used for takeaway or online deliveries. The vendors allow complete customization for the customers in the market. Also, with growing concerns about plastic waste, paper-based boxes and cartons are expected to grow during the forecast period.
- The market is witnessing new launches of international food chains in the country, which may leverage the demand for boxes and cartons.
- According to the General Authority for Statistics (Saudi Arabia), the number of food outlets in the country is expected to increase from 75,971 to approximately 90,791. This growing number of food outlets nationwide is expected to bolster the demand for disposable food service packaging in the future.
- Furthermore, UAE-based disposable packaging manufacturers and supplier Hotpack Global agreed to develop a specialized food packaging project in Saudi Arabia. Hotpack Global signed the USD 266 million project with the Saudi Ministry of Industry. The company has signed an agreement with the Saudi Ministry of Industry for this project. The partners will manufacture diverse packaging products that are sustainable, recyclable, and biodegradable. Such new initiatives by companies are expected to drive the market's growth during the forecast period.
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HoReCa to be the Largest End-user Industry
- The HoReCa segment comprises hotels, restaurants, and cafes. Several major factors, such as the growing number of food outlets and restaurants and the increasing demand for junk food and processed foods among millennials, drive the HORECA food service disposable demand in the market. Furthermore, the growing consumer spending on food delivery and the need to ensure timely delivery of orders has also significantly boosted the demand.
- Saudi Arabia is embracing a fresh chapter in the food industry, capitalizing on the chance to flourish in the market. Through substantial investments in large-scale projects and a notable increase in the establishment of luxurious hotels, the country presents enticing prospects for market expansion. Famous fine-dining restaurants opened pop-up branches in Saudi Arabia during the Jeddah and Riyadh Seasons. HORECA's expansion investment in the country is expected to boost the market in the future.
- According to the World Travel and Tourism Council forecast, the tourism sector in Saudi Arabia is expected to grow at an average of 11% annually over the next few years, making it the fastest-growing travel and tourism sector in the Middle East. The country expects the entire sector's contribution to reach SAR 635 billion (USD 168.93 billion) in 2032, approximately 17.1% of the total economic GDP. With the rise of tourism, there is a consequent rise in the number of consumers in the region, which is expected to drive the growth of the food and beverage sector and disposable packaging.
- The Saudi food service sector is currently heavily dependent upon definitive local offers and large global brands, with this trend particularly apparent in the fast food sector, which remains dominated by brands such as Mcdonald's, Subway, and KFC. This has resulted in a particular disposable packaging demand.
- Single-use food service packaging in QSRs has become a vital part of the fast-paced life in the region as more people rely on fast food. Single-use packaging allows food service establishments to package meals in a sensible, safe, and cost-effective manner while providing customers with a convenient and efficient way to transport meals.
- The country continues to develop its capabilities as an up-and-coming tourist destination; the market is becoming increasingly appealing to more exciting brands such as Coya, Nobu, Scalini, Gaia, and many others, having established a presence in response to the rapid opening up of the restaurant sector in Saudi Arabia.
