Saudi Arabia Plastic Caps And Closures - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

Saudi Arabia Plastic Caps And Closures - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The Saudi Arabia Plastic Caps And Closures Market size is estimated at USD 1.29 billion in 2024, and is expected to reach USD 1.74 billion by 2029, growing at a CAGR of 6.17% during the forecast period (2024-2029). In terms of shipment volume, the market is expected to grow from 25.04 billion units in 2024 to 32.78 billion units by 2029, at a CAGR of 5.53% during the forecast period (2024-2029).

The study of Saudi Arabia's plastic caps and closure market focuses on significant packaging formats, including bottles, jars, and containers. It also delves into the demand and revenue generated from sales across various end-user industry verticals.

Key Highlights

• Key market drivers include the rising adoption of oxo-degradable plastics, heightened demand from diverse industries, technological advancements enhancing barrier solutions, and the introduction of active and intelligent packaging to meet consumer demands. Saudi Arabia stands out as a leading market for plastic packaging in the Middle East, driven by its substantial consumer base and diverse industrial landscape, excluding the oil and gas sector.
• Within Saudi Arabia, the food and beverage sector is witnessing notable growth, outpacing other industries. The Saudi Arabian Ministry of Trade and Industry highlights the beverage and soft drink segment as a mature sector, dominating the country's food and beverage exports.
• The market is primarily attributed to rapid urbanization, which usually translates to increased consumer spending and production of consumer goods, a large expatriate population, and the changing dietary habits of resident citizens. Further, the country has been implementing several initiatives and regulatory reforms, such as Saudi Vision 2023 and the National Industrial Development and Logistics Program (NIDLP), that may increase regional industrial production. This is expected to create considerable demand for packaging products.
• On the supply side, the country is rich in raw materials (for rigid plastic packaging) owing to its oil and gas industry. Saudi Arabia is one of the largest producers of polyolefins in the Middle Eastern region. Additionally, the country's high consumption of plastic packaging products is witnessing the establishment of new production plants and lines to boost the production capacity of caps and closures.
• Challenges such as plastic recycling, the push for sustainable packaging, stringent government regulations, and competition from flexible plastic packaging are impeding market growth in Saudi Arabia. Packaging waste is escalating with the rise in takeaway and ready-to-eat food demand. To combat this, the Saudi Arabian government has enacted laws to curb plastic waste, prompting packaging companies to pivot towards biodegradable alternatives.

Saudi Arabia Plastic Caps and Closures Market Trends

Polyethylene to Witness Growth in the Industry

• Polyethylene, a prevalent consumer plastic, is found in many products. As a thermoplastic, it boasts the unique ability to transition from a solid to a liquid state repeatedly. Depending on the processing conditions, polyethylene can yield diverse grades, catering to various applications. It's typically categorized into LDPE, LLDPE, and HDPE, among other significant compounds.
• Polyethylene's leakproof qualities and impermeability to water vapor make it a significant choice for heat-sealing. This feature lets it snugly wrap around products, creating an airtight seal. Beyond its protective attributes, polyethylene stands out for its versatility. It offers protection and serves as a canvas for advertising, entirely complementing the product.
• In December 2023, Sipchem, the Sahara International Petrochemical Company, was granted a USD 500 million (SAR 1.87 billion) EPC contract to expand the ethylene cracker plant at SEPC (Saudi Ethylene and Polyethylene Company). The company announced that it aims to complete the project's expansion and commence production in the first half of 2026. This expansion is projected to boost Olefin's output by approximately 18% and positively impact Sipchem's financial performance.
• Further, in January 2024, Lummus Technology, a global leader in process technologies and energy solutions, secured a contract from the Saudi Ethylene and Polyethylene Company (SEPC), a Joint Venture of Tasnee Sahara Olefins Company (TSOC). The agreement entails designing and supplying two cutting-edge Short Residence Time ethylene heaters for SEPC's Al-Jubail, Saudi Arabia facility. This project promises to ramp up ethylene production and underscores SEPC's dedication to enhancing energy efficiency and reducing emissions.
• According to General Authority for Statistics (Saudi Arabia), revenue of manufacture of rubber an plastic products in Saudi Arabia in 2021 was USD 4.03 billion and is expected tp reach USD 5.83 billion in 2024. Plastics like polyethylene can be conveniently recycled by tossing them into recycling bins, rendering them more eco-friendly than flexible alternatives. Furthermore, the expanding adoption of packaging caps and closures across multiple industries bolsters its market demand.

Beverage Sector is Expected to Drive the Market Growth

• The caps and closure market in the food and beverage sector is propelled by the rising demand for packaging solutions to extend food products' shelf life. This trend is particularly pronounced with carbonated beverages, water, juices, sports drinks, and nutritional beverages. The surge in demand is further fueled by an increasing number of nuclear families and a growing preference for convenience foods.
• Consumers gravitate towards plastic caps and closures beverage packaging due to its robustness, barrier properties, and durability. This packaging offers enhanced strength and maintains the flavor integrity of the beverages. Its recyclability is a significant environmental benefit, further reducing pollution.
• Further, according to the General Authority for Statistics (Saudi Arabia), the industry revenue for manufacturing beverages in Saudi Arabia in 2023 was USD 3.12 billion and is expected to reach USD 3.13 billion in 2024. Beverages, such as the soft drinks industry in Saudi Arabia, are surging. This uptick is fueled by the proliferation of non-alcoholic beverages in recent years, catering to a demographic that seeks the essence of drinks without the side effects of alcohol.
• In January 2024, Saudi Arabia announced plans to inaugurate a store in Riyadh, marking the first legal alcohol outlet in over seven decades. This establishment, situated in Riyadh's Diplomatic Quarter, will exclusively cater to a select group of non-Muslim expatriates, primarily diplomatic personnel. This might push the market for caps and closures in Saudi Arabia.
• The rising health consciousness among consumers drives the demand for fruit juices and flavored drinks. Additionally, the influence of sports professionals and fitness enthusiasts is boosting the demand for energy and sports drinks, further propelling Saudi Arabia's caps and closures market.

Saudi Arabia Plastic Caps and Closures Industry Overview

The Saudi Arabia Plastic Caps and Closures market is fragmented, with many domestic and significant players, such as Takween Advanced Industries, 3P Gulf Group, Tetra Pak Global, Arabian Plastics Industrial Company Limited (APICO), ALPLA Group, and more. Companies operating in the region are focused on expanding their business through innovations, collaborations, acquisitions, mergers, etc.

• In June 2024, Al Kharj City, closely linked to Riyadh's business hub, celebrated opening a new factory for the Arabian Plastic Industrial Company (APICO). Situated in Al-Kharj Industrial City, the new factory spans 34,000 sq. mts., marking a pivotal moment for APICO. The initial phase saw the completion of a 12,000 sq. mts. factory building equipped with blow molding and injection molding lines for producing various plastic products. These lines are slated for expansion to encompass APICO's complete product line, including the new PET range.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
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