Report Overview

The thriving food processing sector and the expanding availability of processed and packaged food goods through online grocery shops along with rising demand from the pharmaceutical industry are expected to drive the growth of Saudi Arabia Cold Chain Packaging Market during the forecast period between 2023 and 2029.

Saudi Arabia Cold Chain Packaging Market - Industry Trends & Forecast Report, 2029

Saudi Arabia cold chain packaging Market size was estimated at USD 458.83 million in 2022. During the forecast period between 2023 and 2029, the Saudi Arabia cold chain packaging market size is projected to grow at a CAGR of 11.07% reaching a value of USD 950.12 million by 2029. Major growth factors for the Saudi Arabia cold chain packaging market include the flourishing food processing industry and increasing accessibility to processed and packaged food items through online grocery stores. With an increasing workforce and percentage of women entering the labor force in Saudi Arabia, the demand for ready-to-eat and packaged food items including frozen foods, dairy products, and seafood items is projected to surge, propelling the overall cold chain packaging market growth.

Saudi Arabia Cold Chain Packaging Market – Overview

Cold chain packaging is made to keep delicate items at the right temperature (i.e., cold, warm, and frozen). Due to their temperature sensitivity, they are frequently used for the delivery of meat, seafood, medications, and other health products. Active, passive, and hybrid are the three main categories of cold chain packaging technologies that are available. Active packaging works with an energy source to maintain product and internal temperature. Passive systems generally use phase change materials such as dry ice and are prominently used across industries because of their cost-effectiveness. Meanwhile, hybrid systems use a combination of active and passive systems.

Saudi Arabia Cold Chain Packaging Market

Growth Drivers

Rising Trend of Easy-to-Eat Food Items and Processed Food

Saudi Arabia is witnessing a significant boost in its demand for frozen and processed food. This growth is mainly attributed to the increasing launches and penetration of a wide variety of frozen and processed food products, changing lifestyle and increasing workforce and convenience of these products. For instance, Brazilian food brand Seara is launching its premium line of frozen meals in Saudi Arabia. The import and storage of these products will involve cold chain packaging to prolong and preserve the shelf life of food without compromising on the quality.

Restraints

High Cost and Complications in Handling Cold Chain Packaging

The cold chain packaging is rather expensive compared to traditional packaging because of the materials used for its manufacturing. When compared to passive shippers, active and hybrid shippers are often more expensive due to their greater complexity. Additionally, the risk of rotting exists if a cargo is delayed and the transportation duration exceeds the packaging's capacity to maintain temperature control, while being substantially less expensive than refrigerated units. Therefore, importers and exporters who are focusing on restricting their operation and shipping costs may opt for traditional packaging, which can limit the Saudi Arabia cold chain packaging market growth.

Impact of COVID-19 on Saudi Arabia Cold Chain Packaging Market

The Saudi Arabia cold chain packaging market flourished post the COVID-19 pandemic outbreak in the country. The lockdown imposition by the Saudi Government and restrictions on the import and export activities created a huge shortage of essential goods including fruits and vegetables, cereals, and pharmaceuticals. As a result, the investment in cold chain packaging spiked during this period to keep stocks of essential goods in the long run and prevent such situation of food shortages from happening in the future. Furthermore, the demand for cold chain packaging registered a significant surge from the pharmaceutical industry owing to the high demand for vaccine storage and shipping.

Saudi Arabia Cold Chain Packaging Market

Segmental Coverage

Saudi Arabia Cold Chain Packaging Market – By Material

Based on material, the Saudi Arabia cold chain packaging market is split into insulating materials and refrigerants segments. The insulating material segment accounts for a higher share in the Saudi Arabia cold chain packaging market. The cold chain packaging market has a high demand for insulating materials, such as cryogenic tanks, Vacuum Insulated panels (VIP), EPS, and others. However, the refrigerant segment is also gaining traction and is projected to register growth at a higher CAGR during the forecast period. The most popular kinds of shipping coolants/refrigerants are Gel Refrigerants and Dry Ice (frozen Carbon Dioxide).

Saudi Arabia Cold Chain Packaging Market – By Product

Based on product, the Saudi Arabia cold chain packaging market is segmented into labels, cold packs, temperature-controlled pallet shippers, crates, insulated containers & boxes, and others. The insulated container & boxes segment accounts for the highest market share as they can be used for packaging a variety of products including pharmaceuticals, foods, and vaccines, and chemicals. These products are considered suitable for shipping temperature-sensitive products, which is why they are gaining traction in the medical industry for transferring things like biological materials, organs, and blood.

Saudi Arabia Cold Chain Packaging Market – By Application

Based on application, the Saudi Arabia cold chain packaging market is segmented into fruits & vegetables, bakery & confectionery, pharmaceuticals, dairy & frozen desserts, fish, meat, and seafood products, and others. The fruits & vegetable application accounts for the highest share in the Saudi Arabia cold chain packaging market. Saudi Arabia is one of the biggest importers of fruits and vegetables. About 72.4% of the country’s fruits and vegetables are imported. Additionally, the demand for exotic fruits and vegetables is also expanding in the country with changing consumption patterns. This is projected to boost the demand for cold chain packaging in the Saudi Arabia region.

Competitive Landscape

Major players operating in Saudi Arabia cold chain packaging market include Pelican BioThermal LLC, Sonoco Thermosafe, Cold Chain Technologies Inc., Cryopak, Sofrigam Company, Intelsius (A DGP Company), Coolpac, Softbox Systems Ltd, Clip-Lok SimPak, and Chill-Pak. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Scope of the Report

By Material

• Insulating Material

• Refrigerants

By Product

• Labels

• Cold Packs

• Temperature Controlled Pallet Shippers

• Crates

• Insulted Container & Boxes

• Others

By Application

• Fruits & Vegetables

• Bakery & Confectionery

• Pharmaceuticals

• Dairy & Frozen Desserts

• Fish, Meat, and Seafood Products

• Others