Market Overview
Riyadh is the Center of a $1.108 Trillion Economy, the Largest in the MENA region. Multiple Plastics and Petrochemical Segments are Offering Widespread Opportunities...
SAUDI Plastics & Petrochem 18 Years of serving Plastics and Petrochemical Industry Leaders in the Kingdom…
Saudi Arabia Accounts for over 67% of GCC Plastic Resins Production and was the Largest Polymers Consumer Accounting for 61% of the Consumption in the GCC....
Consumer packaging industry is the largest consumer of polymers in the GCC accounting for 44% of the demand, followed by the construction industry which accounted for 26%. The large regional population of the Kingdom consumes over 95KG polymer per capita, capturing over 61% share of the total GCC market.
The Saudi Arabian plastic packaging market is projected to reach USD 11.93 billion by 2026, registering a CAGR of 5.6% during the period of 2021-2026
Saudi Arabia is one of the largest markets for the plastic and packaging industry in the Middle Eastern region. The country has a huge consumer base and wide range of industrial activities. According to the Saudi Industrial Development Fund (SIDF), there were 964 food and beverage manufacturing facilities, 196 textile and apparel manufacturing facilities, and 45 pharmaceutical manufacturing facilities. These manufacturers are driving robust demand for plastic packaging growth that is expected to grow by over 3 Billion US$ over the next five years from under billion US$ to over 12 Billion US$, offering large scale opportunities to technology and solution providers.
$50 Billion of Spending of which Manufacturing Sector Machinery is Lion's Share
Machinery for the plastics sector holds the top position in Saudi Arabia’s imports by volume, according to the International Trade Council. The total machinery import value is substantial, reaching approximately $50 billion. Imported machinery is necessary to create a vibrant manufacturing sector in the Kingdom. Saudi Arabia imports machinery used in various sectors, including industrial equipment and machinery for the plastics and petrochemical sectors. This opened up multiple business opportunities for machinery suppliers.
26% Growth in Industrial Packaging. 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
$9.3 Billion Plastic Material & Manufacturing Growth
Investments in the plastic industry are estimated to be around 2.6% of total investments in the industrial sector. With investments totalling $9.3 Billion, and with over 1300 factories involved, Saudi Arabia’s plastic material and manufacturing sector is experiencing exponential growth. Plastics have come to the forefront of the industrial sector, due to multiple uses including its usage in the food, clothing, auto mobile parts, marine and medical supplies sectors. Providers of imported and locally produced packing machinery and materials are witnessing increased demand inline with Saudi’s economic growth.
$43.94 Billion Antimicrobial Plastics Market Demand is Increasing
The global antimicrobial plastics market is projected to grow from $43.94 Billion in 2023 to $73.65 Billion by 2030, at a CAGR of 7.7% during the forecast period. Plastics that contain antimicrobial additives have performed more effectively than traditional plastics. The antimicrobial and antibacterial properties of these plastics improve the durability and hygiene of food packing films, medical equipment, children’s toys, kitchen utensils, electronic devices and piping products. Particularly in the fast-growth food processing area, there are multiple opportunities to provide specialist plastic packaging products.
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.
$1.67 Billion Petrochemicals Contribute to Detergents’ Market Growth
The main petrochemical derivate ingredients in soaps and detergents are seeing growth. With the expansion of finished property developments, that includes retail, new tourism and hospitality real estate, industrial manufacturing plants, and increased household needs in line with the expansion of the urban population, is leading to an expansion of the market. With the expansion of existing manufacturing facilities as well as new market entrants, and imports of these petrochemical derivatives into the Kingdom, opportunities exist for petrochemicals companies and downstream vendors to provide the market with the required manufacturing inputs.
26% Increase in Industrial Packing Market Growth. Rapidly Expanding Polymers Demand
Industrial packaging is the fastest growing end user market for polymers in the GCC region. The segment accounts for 26% of regional consumption. Industrial packaging demand for polymers has doubled in the past decade, from 260,000 tons of polymer to650,000 tons. This was the highest growth among all end user sectors in the GCC. Whilst it is considered a standalone end user segment, this packaging is tightly linked to industrial sectors. The sectors include packaging used by manufacturers of dyes, inks and paints, chemicals, lubricants, bulk food and beverage as well as building and construction materials.
5.7% PE Pipes Rise Fuelled by the Construction and Infrastructure Activity
The Saudi PE pipes market will achieve a volume of around 192,286.88 tonnes in 2023. The market expected to grow at a CAGR of 5.7% in the forecast period of 2024-2032 to achieve a volume of around266,870.48 tones by 2032. The market in Saudi Arabia is being driven by the growing construction and infrastructural activities, including initiatives to combat water supply challenges, waste water reclamation and desalination activities. Providers of downstream raw materials in the petroleum industry are witnessing increased demand for their products as PE usage increases as projected.
