Marekt overview
Exhibit your Products at the Center of the Largest Plastics and
Petrochemicals Market in the Middle East…
SAUDI Plastics & Petrochem 19 Years of serving Plastics and Petrochemical Industry Leaders in the Kingdom…
Saudi Arabia accounts for over 67% of GCC plastic resins production and was the largest polymers consumer accounting for 61% of the consumption in the GCC….
Consumer packaging industry is the largest consumer of polymers in the GCC accounting for 44% of the demand, followed by the construction industry which accounted for 26%. The large regional population of the Kingdom consumes over 95KG polymer per capita, capturing over 61% share of the total GCC market.
The Saudi Arabian plastic packaging market was valued at USD 8.59 billion,
and it is projected to reach USD 11.93 billion by 2026, with growth rate projected at 5.6%.
Saudi Arabia is one of the largest markets for the plastic and packaging industry in the Middle Eastern region. The country has a huge consumer base and wide range of industrial activities. According to the Saudi Industrial Development Fund (SIDF), there were 1320 food and beverage manufacturing facilities, 196 textile and apparel manufacturing facilities, and 45 pharmaceutical manufacturing facilities. These manufacturers are driving robust demand for plastic packaging growth that is expected to growth expected to be over 3 Billion US$ during the period of 2023-2028, from under 9 billion US$ to over 12 Billion US$. This growth offers large scale opportunities for technology and solution-providers.
The increasing government spending on construction activities is a key driver of plastic market growth.
The rapidly growing building sector is driving high demand for PVC and Insulation, bathroom and other building Sector uses. The Kingdom is seeking USD 425 billion by 2030 for Housing, infrastructure and other industrial projects, as part of an effort to cut its reliance on oil, and this in turn is driving demand for a wide range of plastics products that are used in the building and construction industry in Saudi Arabia, including polyvinyl chloride (PVC) for usual applications such as pipes. Polyurethane spray and rigid polystyrene foam are also used for insulation. Plastic bathtubs are usually made out of a number of different polymer materials, including ABS, acrylic resins, or glass-fiber reinforced polyester. The glass polyester type dominates the tub-shower market.
Industrial packaging is the fastest growing end user market for polymers in the region
Currently this segment accounts for 26% of regional consumption. The main polymers used by the construction sector are PVS, EPS and PU across a number of key applications including insulation, piping, windows and doors. Industrial packaging demand for polymers has doubled in the past decade, from 260,000 tons of polymer to 650,000 tons. This was the highest growth among all end user sectors in the GCC. While it is considered a standalone end user segment, packaging is tightly linked to the industries it serves including chemicals, lubricants, bulk food and beverage as well as building and construction
Building Sector, flexible plastic packaging, healthcare and pharmaceuticals, cosmetics and personal care products are other high growth segments…
In addition to building sector use of PVC and insulation materials and bathroom showers and the like applications that are growing rapidly to serve the fast-track housing expansion market, flexible plastic packaging is also experiencing rapid growth because of its ease of use and adaptability, wide application and relative low costs which has made it highly preferred among the manufacturers. The multi-billion US$ expansion of health care funding is also driving healthcare and pharmaceuticals sector growth and its related plastic products and packaging. Consumer spending and large disposable incomes are also driving growth in cosmetics and personal care segments of local manufacturing and packaging.
Bio-degradable plastics will be a growing segment…
According to the new rules implemented by SASO, the Saudi organization controlling standards, measurement, and quality, plastic products must now be made of approved oxo-biodegradable material, as a result, demand for environmentally- friendly biodegradable plastics is expected to increase as the new regulations enforcement grows. The new regulation is expected to affect a wide range of plastic products and encourage innovation and adoption of the latest solutions for this need.
The mega petrochemical industrial cities of Jubail and Yanbu are undergoing continued rapid expansion…
SABIC and ARAMCO are already working on the construc tion of a crude oil-to-chemicals facility in Yanbu. Upon becoming fully operational in 2025, the plant is expected to produce 9m tons per year of chemicals from 400,000 barrels per day of crude oil. The SIDF reports that Saudi Arabia is consolidating and expanding its petrochemicals industry through a series of new mergers and partnership deals. By far the biggest deal has been the finalization of an agreement in March 2020 for the purchase by national oil giant Saudi Aramco of a 70% stake in SABIC. Saudi Aramco and SABIC will collaborate to further develop the petro chemicals industry, the Kingdom’s largest source of non-oil exports, accounting for 57% of nonoil exports at the end of 2019.
International partnerships produce some of the largest global facilities of their type, and the production of wide range of petrochemicals…
A major international JV of ARAMCO is the $20bn Sadara Chemi cal Company (Sadara) industrial facility in Jubail Industrial City, a JV with the US company Dow Chemicals. The facility was designed to be the largest single-site integrated refining and petrochemicals complex in the world, with a 1.5m-ton-per-year capacity mixed-feed cracker capable of utilizing ethane and naphtha to produce a broad range of chemical products. On the other side of the Kingdom in Yanbu on the Red Sea ARAMCO’s entered into an equally impressive JV – the Petro Rabigh JV with Japan-headquartered Sumitomo Chemical. This JV produces petrochemicals that are used to make detergents, resins, auto interiors, glue, household appliances, toiletries and artificial fibers. Multiple other international partnerships continue to drive the strategic goals attainment of international prominence in the sector, and being ready to deliver a full spectrum of petrochemical products of the highest international standards.
