KSA has a strategic location in the Middle East, which makes it a global competitor in the plastics and petrochemicals industry, with a remarkable expansion driven by various sectors, Saudi Arabia leads the GCC countries in this sector, contributing more than 67% of plastic resin production and 61% of consumption.
The Kingdom’s plastic packaging industry, currently valued at USD 8.59 billion, is projected to increase at a 5.6% annual pace to reach USD 11.93 billion by 2026.
Plastic packaging thrives in this environment because of the large customer base and expanding industrial operations.
The use of industrial packaging, one of the fastest-growing markets, has increased over the last ten years and is strongly associated with the chemical, food and beverage, and construction industries.
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The Kingdom’s packaging industry is experiencing growth in demand for its products and packaging printing services as a result of heightened manufacturing activities, economic difficulties, shifting consumer preferences, and government initiatives to diversify the economy, all these factors are contributing to the development of the sector.
With a 70% share of the total packaging industry in the GCC, Saudi Arabia is a dominant player in this market.
The local businesses have been witnessing a significant 15% yearly growth, which can be attributed to the extensive usage of plastic as the preferred packaging material over glass and metal.
With the growing need for both rigid and flexible packaging, the packaging sector has become one of the busiest in the country.
The food and beverage sector is the GCC major consumer of flexible packaging, followed by the chemical sector.
According to forecasts in the packaging industry, printing technology is expected to grow highest, with emphasis on digital printing. The food and beverage sector is to augment the demand for the printing industry which is valued at US $ 800 million in the Kingdom of Saudi Arabia.
The printing industry in the kingdom is the oldest and the largest in the entire Gulf region.
The country’s economic growth, increased government spending, population expansion, rising cultural and educational activities, and the growth of retail trade contributed to an increase in printing, advertising and marketing activities, which, in turn, led to an increase in demand for printing equipment and services and overall growth of the industry. The retail industry has undergone significant transformations in recent years, many of which have been associated with printing.
