Summary

The Saudi Arabian paper and paperboard packaging market was valued at USD 1926.3 million in 2020, and it is expected to reach USD 2508.4 million by 2026, registering a CAGR of 4.2% during the period 2021-2026.

With the outbreak of COVID-19, the Saudi Arabian paper and paperboard packaging market witnessed a decline in growth during the initial months of the outbreak, as most of the manufacturing plants were shut down due to the lockdown. The pandemic has also affected trade and global supply chains of essential and non-essential goods and services.

- The growing demand for customer-friendly packages and heightened product protection is expected to boost paper and paperboard packaging as a viable and cost-effective solution in Saudi Arabia. According to General Authority for Statistics (Saudi Arabia), the industry revenue from the manufacturing of paper and paper-based products in Saudi Arabia is expected to reach USD 5.52 billion by 2024.
- Moreover, Saudi Arabia is one of the largest markets for the packaging industry in the Middle Eastern region. The country has a huge consumer base and a wide range of industrial activities (apart from the oil and gas sector), adding to the rapid growth in demand for paper and paperboard packaging from the country. ​​
- Innovations in printing are leading to increased demand for the manufacturers of folding carton packaging. For instance, due to the increased demand for spot colors and spot coatings with UV coating, Shater Al-Ebtekar decided on a new Speedmaster XL 106 six-color press with UV coating to boost the company's productivity in folding cartons' production.
- Furthermore, price changes in the chemical pulp created a significant impact on market participants' operations, mainly due to the yields and price of pulp raw materials.

Key Market Trends

Regulations on Plastic-based Packaging Products Contribute to Higher Demand

- The government and authorities in the country are taking significant steps to minimize the environmental impact due to packaging in the country by imparting regulations or ban on the usage of plastic packaging.
- Furthermore, SASO announced the plastic products and the packaging materials for consignments must gradually bear the "biodegradable" logo. This ensures even disposable plastic products made of polyethylene or polypropylene with a film thickness of 250 microns or less, which are commonly used for packaging, are oxo-biodegradable.
- All these regulations pertaining to curbing out or lowering the usage of plastic-based packaging in the country are significantly driving the market for paper and paperboard-based packaging in Saudi Arabia.
- Many market vendors in the region are adopting new packaging with paper and paperboard packaging material to reduce the environmental impact of packaging and launching innovations for recycling. For instance, Tetra Pak promoted recycling awareness among Saudi Arabians and paved the road to use recyclable materials better.

The Food and Beverage Vertical is Expected to Witness Significant Growth

- Online shopping of food combined with the growing proliferation of food delivery services is expected to accelerate the demand for sacks, kraft papers, folding cartons, and liquid cartons. According to the Saudi Arabian General Authority for Investment (SAGIA) forecasts, the spending on foodservice is expected to grow by 6% per annum over the next five years, with food consumption reaching SAR 221 billion by the end of 2021.
- The demand for online shopping for food and beverage further accelerated in the country, owing to the recent effects of the pandemic. According to a study conducted by Choueiri Group in May 2020, which involved inputs of 2,800 Saudi participants, consumers in Saudi Arabia ramped up their online purchases of food and beverage during the pandemic; about 55% of the population purchased grocery items online in April, which was exponentially higher compared to the 6% before the outbreak.
- Apart from this, the Saudi Arabian food and beverage industry is the largest in the Middle Eastern region, valued at USD 45 billion according to the JLL MENA study in June 2020. The study also found that consumers in the country are moving toward healthy and sustainable eating, where paper, corrugated, and carton box packaging is expected to gain traction in the industry.
- Along with the government, even consumers are looking to opt for products from home-grown brands, and such companies have been doing significantly well in the country in recent times. For instance, in April 2021, Almunajem Foods, one of the promient private food companies in the country, reported a positive outlook for 2021 despite the effects of the pandemic. The company serves more than 22,000 customer outlets, including retail, food services, and wholesale channels.
- Furthermore, Saudi Arabia also stands out as a major dairy importer globally, importing large volumes of milk and dairy products, including cheese. According to the data published by UN Comtrade, in 2018, Saudi Arabia was the second-largest importer of processed cheese worldwide, after the United Kingdom, amounting to a value of over USD 253 million in the same year (source: UN Comtrade).

Competitive Landscape

The Saudi Arabian paper and paperboard packaging market is very moderately competitive, with a considerable number of regional players. Key players include Obeikan Investment Group, Gulf Carton Factory Company, and Eastern Pak Limited.

- December 2020 - Eastern Pak Limited acquired the SCA Arcwise license to create curved corrugated packaging. It involves premiumization packaging and attracting customers at the point of sale with continuous curves and improved print quality.

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- The market estimate (ME) sheet in Excel format
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Table of Contents

1 INTRODUCTION
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 Demand from the Food and Beverage Sector
4.2.2 Regulations on Plastic-based Packaging Products Contributes to Higher Demand
4.2.3 Increasing Demand for Eco-friendly Solutions and Scope for Printing Innovations Propelling the Growth of the Market
4.3 Market Challenges
4.3.1 Reliance on Other Countries for Raw Materials and Fluctuating Raw Material Prices
4.4 Industry Attractiveness - Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitutes
4.4.5 Intensity of Competitive Rivalry
4.5 Assessment of the Impact of COVID-19 on the Paper Paperboard Packaging Market
4.6 Packaging Machinery Providers in Saudi Arabia

5 TRADE SCENARIO
5.1 Historical Import-export Analysis
5.2 List of Major Importing Countries
5.3 List of Major Exporting Countries
5.4 Key Takeaways
5.5 Saudi Arabia Paper Items - Exports By Volume And Value
5.6 Saudi Arabia Paper Items – Imports By Volume And Value
5.7 Saudi Arabia Paper Items – Production By Volume
5.8 Saudi Arabia Papers – Trade Pattern Analysis
5.9 Saudi Arabia Paper Commodities – Importers/Exporters

6 MARKET SEGMENTATION
6.1 By Type
6.1.1 Folding Cartons
6.1.2 Corrugated Boxes
6.1.3 Other Types
6.2 By End-user Vertical
6.2.1 Food and Beverage
6.2.2 Healthcare
6.2.3 Personal Care and Household Care
6.2.4 Industrial
6.2.5 Other End-user Verticals

7 COMPETITIVE INTELLIGENCE
7.1 Company Profiles
7.1.1 Gulf Carton Factory Company
7.1.2 Eastern Pak Limited
7.1.3 UCIC Group
7.1.4 Gulfeast Paper & Plastic Industries LLC
7.1.5 Obeikan Investment Group
7.1.6 Napco National
7.1.7 Middle East Paper Group
7.1.8 Global Carton Boxes Manufacturing LLC

8 FUTURE OF THE MARKET