Saudi Arabia PET Packaging Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Saudi Arabia PET Packaging Market Size

Saudi Arabia PET Packaging Market Trends and Growth Drivers

Usage of Environment-Friendly Packaging Is Significant Trend

• There is a continuous rise in the level of urbanization in the Kingdom of Saudi Arabia, which raises concerns over sustainable development.
• As a result, the kingdom's government is now more focused than ever on the usage of recyclable and reusable materials.
• In comparison to other plastics, PET is more eco-friendly, and the raw material consumption is also lower for its production.
• PET polymer chains break down easily at low temperatures, which makes this plastic recyclable.
• Further, this polymer can be easily created from plant-extracted chemicals, which offers more opportunities for sustainability.

Expansion of Food and Beverage Industry in Saudi Arabia Is Key Driver for Market Growth

• The rampant urbanization in Saudi Arabia leads to the expansion of the food and beverage industry across the country. This, in turn, raises the demand for PET packaging material.
• PET packaging is safe for food and beverages owing to its non-toxic nature. This is owed to the absence of any harmful chemical that can enter the food product being packaged.
• Furthermore, the lightweight and shatterproof characteristics of this polymer make it a better choice for beverage packaging.
• It is extremely easy to handle and transport, offering cost-effectiveness to both producers and consumers.
• PET is the most-common recycled plastic, and it can be transformed into a wide range of products.
• This makes it an ideal eco-friendly option for the food and beverage industry of Saudi Arabia as it aligns well with the kingdom’s sustainability initiatives.

Fluctuation in Raw Material Prices Restrains Market Growth

• The fluctuation in the prices of the raw materials used for PET production is a major challenge for packaging manufacturers.
• Fluctuations in the prices of crude oil have a significant impact on the price of PET resin.
• Brent crude prices were at a record high of over USD 111 per barrel in 2011, from where they have continued to fall and rise.
• More recently, Brent prices stood at USD 100.93 per barrel in 2022 and merely USD 82.49 per barrel in 2023, currently standing at USD 83 per barrel in 2024.

Saudi Arabia PET Packaging Market Analysis

Product Insights

• The bottles and jars category will hold the largest share, of 45%, in 2024. This is because many international brands use PET bottles because of their lightweight and cost-effective transportation properties.
• The increase in the demand for processed food, especially carbonated beverages, in the kingdom drives the demand for PET bottles by global F&B companies, such as Pepsi and Coca-Cola.
• The trays category is expected to grow at the highest CAGR, of 5.6%, over the forecast period.
• The rising rate of urbanization in the Kingdom of Saudi Arabia has led to a lifestyle change among its population, which has raised its preference for convenience food products.
• Often, fresh fruits, eggs, and ready-to-cook meals are packaged in trays, and their rising consumption essentially drives the market in this category.

On the basis of product, the market has the following categories:

• Bottles and Jars (Largest Category)
• Bags and Pouches
• Trays (Fastest-Growing Category)
• Lids/Caps and Closures
• Others

By Packaging Type

• The rigid category dominates the market with 65% revenue in 2024. This is because rigid packaging it is widely used in the food and beverage industry due to its low weight, durability, and excellent stability.
• Trays, bottles, and jars are the most-common types of rigid PET packaging consumed in the country.
• The flexible packaging category is expected to grow at the higher CAGR, of 5.6%, over the forecast period.
• Flexible packaging prevents food waste and spoilage, this offering significant advantages for Saudi Arabia, which is still new to agriculture on account of its majorly arid climate.
• The growing popularity of Western cuisine propels the demand for dips, sauces, and ketchup, while the rising preference for South Asian cuisine drives the sale of spice mixes.
• Such products, apart from certain pharmaceuticals and FMCGs, are widely packaged in sachets, squeezy containers, and pouches.

On the basis of packaging type, the market has the following categories:

• Rigid (Larger Category)
• Flexible (Faster-Growing Category)

Application Insights

• The food and beverage industry holds the largest market share, of 35%, in 2024, and it is expected to grow at the highest CAGR, over the forecast period.
• PET packaging is widely used for food and beverages, especially soft drinks, juices, and water.
• With people’s rising disposable income, the sale of convenience and processed food products continues to rise in the kingdom.

On the basis of application, the market has the following categories:

• Food and Beverages (Largest and Fastest-Growing Category)
• Pharmaceuticals and Healthcare Products
• Industrial Goods
• Cosmetics and Personal Care Products
• Homecare Products and FMCG
• Electronics
• Others

Regional Analysis

Al-Riyadh is Growing Fastest

• Al-Riyadh is expected to witness the highest CAGR, of 5.8%, during the forecast period.
• This is due to the rising use of PET plastic bottles for drinking water among consumers in this particular region.
• Being a desert country with a long coastline, freshwater is scarce here. This makes desalination and wastewater treatment highly important to satisfy the water needs of the population.
• As a result, the sale of bottled mineral water is continuously growing in the kingdom, especially in Riyadh, which is its most-populated province and home to a large number of corporate offices.

The provinces analyzed in this report are:

• Al-Riyadh (Fastest-Growing Province)
• Makkah
• Al-Madinah
• Al-Qaseem
• Eastern Province (Largest Province)
• Aseer
• Tabouk
• Hayel
• Northern Border
• Jazan
• Najran
• Al-Baha
• Al-Jouf

Saudi Arabia PET Packaging Market Share

Market Nature - Fragmented

The Saudi Arabian PET packaging market is fragmented due to the presence of both international and local players in the market. The major share of the market is held by small and medium enterprises, which strongly compete among themselves and with the large enterprises. Being easily available, raw materials for plastic production are accessible to small and mid-size companies, which is the key reason behind market fragmentation.

Saudi Arabia PET Packaging Market News

• In April 2024, aseptic carton packs for wine were developed by SIG, in partnership with Namaqua Wines.
• In April 2024, Amcor introduced completely post-consumer recycled PET bottles for carbonated soft drinks.
• In November 2023, Sidel launched new ultra-light and ultra-small PET bottles for dairy products.
• In April 2022, Azbah Water selected a new high-speed PET line from Krones to meet the demand for packaged water in the kingdom.