Report Overview

Saudi Arabia Paper and Paperboard Packaging Market – Industry Trends & Forecast Report, 2030

The Saudi Arabia Paper and Paperboard Packaging Market size was estimated at USD 2.6 billion in 2023. During the forecast period between 2024 and 2030, the Saudi Arabia Paper and Paperboard Packaging Market size is projected to grow at a CAGR of 3.04% reaching a value of USD 3.11 billion by 2030. A prominent driver of the Saudi Arabia Paper and Paperboard Packaging Market is the increasing demand for customer-friendly packaging, enhanced product protection, adoption of corrugated packaging as a cost-effective solution in the kingdom. Corrugated boxes and folding cartons, categorized under paper and paperboard packaging, are recognized for their versatility and cost-effectiveness in packaging and delivering goods, offering visually appealing product presentation. With a substantial consumer base and diverse industrial activities beyond the oil and gas sector, Saudi Arabia is experiencing rapid growth in the demand for paper and paperboard packaging. The General Authority of Statistics reports a 6.4% increase in the merchandise value of the country's exports in Q4 2022 compared to the previous year, amounting to SAR 342.4 billion (USD 91.23 billion). This surge in export trade is expected to fuel the demand for paperboard packaging, particularly in the secondary and tertiary packaging sectors. The flourishing food delivery app industry in Saudi Arabia, coupled with the rising preference for single-serve packs due to an increase in single-person households and evolving consumer lifestyles, is contributing to the growth of the packaged food market. Also, the privatization of the healthcare sector under Saudi Vision 2030 is expected to rejuvenate industry growth and support the healthcare packaging market. Regional companies are also making efforts to enhance recyclability, as exemplified by Tetra Pak's agreement with the OPI paper mill to recycle used cartons.

Paper and Paperboard Packaging – Overview

Paper and paperboard packaging encompass the use of paper-based materials to create diverse packaging solutions. These materials, known for their versatility, light weight, and eco-friendliness, are well-suited for packaging a wide range of products, including but not limited to food, beverages, consumer goods, and pharmaceuticals. Paperboard, a sturdier form of paper, is commonly utilized for crafting packaging boxes, cartons, and containers, while thinner paper is employed for labels, bags, and wrapping materials. Beyond providing protection against external elements like moisture, light, and physical damage, paper and paperboard packaging also serve as a platform for branding and communication through printing and labeling. Moreover, these materials are both recyclable and biodegradable, aligning with the growing emphasis on sustainability and the reduction of the environmental impact of packaging.

Saudi Arabia Paper and Paperboard Packaging Market

Growth Drivers

Growing Demand for Sustainable Packaging

The Saudi Arabia Paper and Paperboard Packaging Market is witnessing a surging demand for the packaging materials driven by a heightened focus on environmental sustainability. Aligned with global eco-friendly practices, the demand for recyclable and biodegradable paper packaging is rising. The trend resonates with Saudi Arabia's commitment to environmental responsibility, particularly evident in Vision 2030 initiatives, fostering a positive market outlook. Additionally, growing consumer awareness and preferences for sustainable products contribute to the increasing adoption of paper and paperboard packaging. The expanding e-commerce sector further fuels demand for reliable and eco-conscious packaging solutions. Rapid innovations and technological advancements in the industry, offering resilience and customization, are pivotal factors propelling the market's growth.

Challenges

Lack of Recycling Infrastructure

The growth of the Saudi Arabia Paper and Paperboard Packaging Market faces limitations due to a deficient recycling infrastructure. The lack of robust systems hampers the efficient recycling of paper and paperboard materials, hindering the market's sustainability efforts. As recycling becomes a pivotal aspect of eco-friendly practices, addressing this infrastructure gap becomes essential to unlock the full potential of the paper and paperboard packaging sector in the country.

Saudi Arabia Paper and Paperboard Packaging Market

Segmental Coverage

Saudi Arabia Paper and Paperboard Packaging Market – By Product

Based on product, Saudi Arabia Paper and Paperboard Packaging Market is divided into Paper Cups, Kraft Paper Boards, Boxboard, Folding Boxes & Cases, and Paper & Paperboard Packaging segments. The folding boxes & cases segment holds the highest share in the Saudi Arabia Paper and Paperboard Packaging Market by product. The escalating demand for folding cartons in Saudi Arabia spans various industries, including food and beverage, healthcare, personal care, home care, and retail, driven by a concerted effort towards eco-friendliness and sustainability. The region's consumers, particularly in the thriving food industry, exhibit a growing awareness of sustainable packaging preferences, favoring the lightweight, biodegradable, and recyclable nature of paper. The General Authority for Statistics (Saudi Arabia) exhibits a substantial increase in revenue from the food & beverage services, projecting a growth from USD 14.46 billion in 2020 to USD 16.03 billion by 2025, attributed to a 10.8% surge, propelled by the rising demand for milk and milk products. Also, the evolving dynamics of the food service sector, influenced by an increasing number of single households opting for takeaway and delivery services, contribute to the reshaping and growth of the studied market in the country.

Saudi Arabia Paper and Paperboard Packaging Market – By Fit Type

Based on fit type, the Saudi Arabia Paper and Paperboard Packaging Market is divided into Corrugated Box, Box Board, and Flexible Paper segments.

Saudi Arabia Paper and Paperboard Packaging Market – By Grade

Based on grade, the Saudi Arabia Paper and Paperboard Packaging Market is divided into Solid Bleached Sulfate, Coated Unbleached Kraft Paperboard, Folding Boxboard, White Lined Chipboard, Glassine and Greaseproof Paper, and Label Paper segments. The white lined chipboard segment holds the highest share in the Saudi Arabia Paper and Paperboard Packaging Market by grade. It is primarily due to an exceptionally eco-friendly packaging material despite facing criticism. Leading industry players produce this material by utilizing 100% recycled paper, which is transformed into pulp and then shaped into jumbo reels. Meanwhile, the coated unbleached kraft paperboard segment is expected to record the fastest growth rate during the forecast period. It is due to its widespread adoption in manufacturing paper bags. This versatile material meets the rising demand for sustainable and eco-friendly packaging solutions, aligning with the industry's focus on environmental consciousness and consumer preferences.

Saudi Arabia Paper and Paperboard Packaging Market – By End User

On the basis of end user, the Saudi Arabia Paper and Paperboard Packaging Market is divided into Personal Care & Cosmetics, Food & Beverages, Healthcare, Consumer Goods, and Education & Stationery segments. The food & beverages segment is expected to hold the highest share in the Saudi Arabia Paper and Paperboard Packaging Market by end user during the forecast period. The expansion of market segment is due to increasing demand for various paper-based packaging solutions, including folding cartons, corrugated boxes, and liquid cartons. This surge is driven by shifts in national lifestyles and the increasing preference for ready-to-eat, frozen, and packaged products. The growth of online food platforms, tourism, and a focus on sustainable packaging further contributes to the market's development. The Saudi Authority for Industrial Cities and Technology Zones (MODON) plays a key role by signing contracts and agreements to support the food and beverage sector's growth. The evolving tourism landscape in Saudi Arabia, diversifying beyond traditional forms, is poised to positively impact the market. The substantial increase in tourism revenue indicates significant opportunities for the food and beverage industry, emphasizing the importance of diverse paper-based packaging solutions.

Competitive Landscape

Major players operating in Saudi Arabia Paper and Paperboard Packaging Market include Gulf Carton Factory, Eastern Pak Limited, United Carton Industries Company (UCIC), Napco National, Middle East Paper Group (MEPCO), Salman Group, Al Watania For Containers, and SPMC Saudi Paper Manufacturing Co. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In August 2023 - The Saudi Public Investment Fund (PIF) announced a binding agreement to acquire a 23.08% stake in Middle East Paper Company (MEPCO) for SAR 630 million (USD 168 million). According to the agreement, MEPCO will increase its capital by up to SAR 866.7 million (USD 231.054 million) by waiving the priority right.

• In July 2023 - Napco National strategically acquired Rotopak, a leading provider of printed flexible and paperboard packaging solutions. This acquisition is in line with Napco's vision to broaden its packaging portfolio and enhance its market presence, underscoring its dedication to addressing societal needs and environmental concerns in the GCC region.

Scope of the Report

By Product

• Paper Cups

• Kraft Paper Boards

• Boxboard

• Folding Boxes and Cases

• Paper and Paperboard Packaging

By Type

• Corrugated Box

• Box Board

• Flexible Paper

By Grade

• Solid Bleached Sulfate

• Coated Unbleached Kraft Paperboard

• Folding Boxboard

• White Lined Chipboard

• Glassine & Greaseproof Paper

• Label Paper

By End User

• Personal Care & Cosmetics

• Food & Beverages

• Healthcare

• Consumer Goods

• Education & Stationery

1. Research Framework
   1. Research Objective
   2. Resin Service Device Overview
   3. Market Segmentation
2. Executive Summary
3. Saudi Arabia Paper and Paperboard Packaging Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Growing demand for sustainable packaging
         2. Increasing e-commerce penetration
      2. Restraints
         1. Limited domestic production
         2. Lack of recycling infrastructure
      3.  Opportunities
         1. Investment in recycling infrastructure
         2. Development of new packaging technologies
      4. Challenges
         1. Increased competition from alternative packaging materials
   3.  Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. Saudi Arabia Paper and Paperboard Packaging Market Overview
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Product
         1. Paper Cups
         2. Kraft Paper Boards
         3. Boxboard
         4. Folding Boxes & Cases
         5. Paper & Paperboard Packaging
         6. Others
      2. By Type
         1. Corrugated Box
         2. Box Board
         3. Flexible Paper
      3. By Grade
         1. Solid Bleached Sulfate
         2. Coated Unbleached Kraft Paperboard
         3. Folding Boxboard
         4. White Lined Chipboard
         5. Glassine & Greaseproof Paper
         6. Label Paper
         7. Others
      4. By End User
         1. Personal Care & Cosmetics
         2. Food & Beverages
         3. Healthcare
         4. Consumer Goods
         5. Education & Stationery
         6. Others
5. Competitive Landscape
   1. List of Key Players and Their Range
   2. Saudi Arabia Paper and Paperboard Packaging Company Market Share Analysis, 2023
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships)
6. Impact of Covid-19 on Saudi Arabia Paper and Paperboard Packaging Market.
7. Company Profile (Company Overview, Financial Matrix, Competitive landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook, SWOT Analysis)
   1. Gulf Carton Factory
   2. eastern pak limited
   3. United Carton Industries Company (UCIC)
   4. Napco National
   5. Middle East Paper Group (MEPCO)
   6. Salman Group
   7. Al Watania For Containers
   8. SPMC Saudi Paper Manufacturing Co
   9. Other prominent players
8. Key Strategic Recommendations
9. Research Methodology
   1. Qualitative Research
      1. Primary & Secondary Research
   2. Quantitative Research
   3. Market Breakdown & Data Triangulation
      1. Secondary Research
      2. Primary Research
   4. Breakdown of Primary Research Respondents
   5. Assumption & Limitation

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable.

List of Figures

Figure 1       Saudi Arabia Paper and Paperboard Packaging Segmentation                                  

Figure 2       Saudi Arabia Paper and Paperboard Packaging Market Value Chain Analysis   

Figure 3       Company Market Share Analysis, 2022                            

Figure 4       Saudi Arabia Paper and Paperboard Packaging Market Size, By Value (USD Billion), 2019–2030

Figure 5       Saudi Arabia Paper and Paperboard Packaging Market Share, By Product, By Value, 2019–2030

Figure 6       Saudi Arabia Paper and Paperboard Packaging Market Share, By Type, By Value, 2019–2030

Figure 5       Saudi Arabia Paper and Paperboard Packaging Market Share, By Grade, By Value, 2019–2030

Figure 6       Saudi Arabia Paper and Paperboard Packaging Market Share, By End-User, By Value, 2019–2030

List of Tables      

Table 1        Saudi Arabia Paper and Paperboard Packaging Market Share, By Product, By Value, 2019–2030

Table 2        Saudi Arabia Paper and Paperboard Packaging Market Share, By Type, By Value, 2019–2030

Table 3        Saudi Arabia Paper and Paperboard Packaging Market Share, By Grade, By Value, 2019–2030

Table 4        Saudi Arabia Paper and Paperboard Packaging Market Share, By End-User, By Value, 2019–2030

Table 5        Gulf Carton Factory Company Overview

Table 6        Gulf Carton Factory Financial Overview

Table 7        eastern pak limited Company Overview

Table 8        eastern pak limited Financial Overview

Table 9        United Carton Industries Company (UCIC) Company Overview

Table 10      United Carton Industries Company (UCIC) Financial Overview

Table 11      Napco National Company Overview

Table 12      Napco National Financial Overview

Table 13      Middle East Paper Group (MEPCO) Company Overview

Table 14      Middle East Paper Group (MEPCO) Financial Overview

Table 15      Salman Group Company Overview

Table 16      Salman Group Financial Overview

Table 17      Al Watania For Containers Company Overview

Table 18      Al Watania For Containers Financial Overview

Table 19      SPMC Saudi Paper Manufacturing Co Company Overview

Table 20      SPMC Saudi Paper Manufacturing Co Financial Overview