Ksa Biodegradable Plastic Market Report Size, Share, Growth Drivers, Trends, Opportunities & Forecast 2025–2030

KSA Biodegradable Plastic Market Overview

• The KSA Biodegradable Plastic Market is valued at USD 120 million, based on a five-year historical analysis. This growth is primarily driven by increasing environmental awareness, government initiatives promoting sustainable materials such as the Saudi Green Initiative and Vision 2030, and rising demand from packaging, agriculture, and consumer goods industries for eco-friendly solutions. The market is expected to continue expanding as brand owners, retailers, and converters integrate biodegradable and compostable formats to meet evolving sustainability targets and consumer expectations.
• Key cities such as Riyadh, Jeddah, and Dammam dominate the KSA Biodegradable Plastic Market due to their significant industrial activities, logistics infrastructure, and population density. These urban centers are witnessing a surge in demand for biodegradable products, particularly in the food and beverage and retail sectors, where sustainable packaging is increasingly adopted by supermarkets, quick-service restaurants, and e-commerce players. The concentration of packaging converters, distribution networks, and large consumer brands in these cities further enhances their market dominance.
• In 2023, the Saudi government implemented the “Technical Regulation for Biodegradable Plastic Products” issued by the Saudi Standards, Metrology and Quality Organization (SASO, 2023), which sets binding requirements for biodegradable plastic items, including certification, conformity assessment, and product labeling. Under this framework, plastic packaging used in sectors such as food and beverages must increasingly meet biodegradability or recyclability criteria by 2025, supporting a phased shift away from conventional single-use plastics. This regulation aims to reduce plastic waste and promote the use of sustainable materials across the Kingdom, forming a key component of broader environmental policies aligned with Vision 2030 and the Saudi Green Initiative.

KSA Biodegradable Plastic Market Segmentation

By Type:The biodegradable plastic market can be segmented into various types, including starch-based plastics, PLA (Polylactic Acid), PHA (Polyhydroxyalkanoates), PBAT (Polybutylene Adipate Terephthalate), and PBS (Polybutylene Succinate). In KSA, starch-based plastics currently represent the leading subsegment in terms of revenue, supported by their cost-effectiveness and suitability for carrier bags and flexible packaging, while PLA, PBAT, PBS, and PHA are gaining traction in rigid packaging, disposable items, and agricultural films. Growing interest from food service operators, retailers, and brand owners in compostable and bio-based formats is reinforcing demand for these materials across multiple applications.

By End-User:The end-user segmentation includes food and beverage packaging, retail & consumer goods, medical & healthcare, agriculture & horticulture, and industrial & institutional applications. The food and beverage packaging segment is the most significant contributor to the market, driven by high consumption of single-use foodservice items, takeaway packaging, and flexible packs where brand owners are actively shifting to biodegradable or compostable alternatives. This trend is fueled by consumer awareness regarding environmental issues, retailer sustainability commitments, and the need for compliance with government standards on plastic waste reduction and biodegradable product specifications.

KSA Biodegradable Plastic Market Competitive Landscape

The KSA Biodegradable Plastic Market is characterized by a dynamic mix of regional and international players. Leading participants such as SABIC (Saudi Basic Industries Corporation), Saudi Top Plastic Factory (Top Plastic), Napco National Packaging Co., Takween Advanced Industries, Zamil Plastic Industries Ltd., Al Watania Plastics, Intercare Limited (Saudi Arabia), Balfakih Plastic Factory, Riyadh Plastic Factory, Al-Jabr Plastic Factory, BASF SE, TotalEnergies Corbion PLA, NatureWorks LLC, Novamont S.p.A., FKuR Kunststoff GmbH contribute to innovation, geographic expansion, and service delivery in this space.

KSA Biodegradable Plastic Market Industry Analysis

Growth Drivers

• Increasing Environmental Awareness:The Kingdom of Saudi Arabia (KSA) has seen a significant rise in environmental awareness, with 75% of the population expressing concern over plastic pollution. This awareness is driving demand for biodegradable alternatives, as consumers increasingly prefer products that minimize environmental impact. The government’s commitment to sustainability, reflected in Vision 2030, aims to reduce plastic waste by 50% in the near future, further propelling the biodegradable plastic market.
• Government Initiatives and Regulations:KSA's government has implemented various initiatives to promote biodegradable plastics, including the introduction of regulations that mandate the reduction of single-use plastics. In the near future, the government allocated SAR 1.5 billion (approximately USD 400 million) to support research and development in sustainable materials. These initiatives are expected to create a favorable regulatory environment, encouraging manufacturers to invest in biodegradable plastic production.
• Rising Demand from Packaging Industry:The packaging industry in KSA is projected to grow to SAR 35 billion (approximately USD 9.3 billion) in the near future, with a substantial shift towards sustainable packaging solutions. Biodegradable plastics are increasingly being adopted in food packaging, driven by consumer preferences for eco-friendly options. This trend is supported by the fact that 65% of consumers are willing to pay more for sustainable packaging, indicating a robust market opportunity for biodegradable plastics.

Market Challenges

• High Production Costs:One of the significant challenges facing the KSA biodegradable plastic market is the high production costs associated with biodegradable materials. The cost of raw materials for biodegradable plastics can be up to 35% higher than conventional plastics. This price disparity limits the competitiveness of biodegradable options, especially in price-sensitive sectors, hindering widespread adoption despite growing demand.
• Limited Consumer Awareness:Despite increasing environmental awareness, consumer knowledge about biodegradable plastics remains limited. A survey indicated that only 45% of consumers in KSA are familiar with biodegradable options and their benefits. This lack of awareness can impede market growth, as consumers may not actively seek out or choose biodegradable products over conventional alternatives, affecting overall demand.

KSA Biodegradable Plastic Market Future Outlook

The future of the KSA biodegradable plastic market appears promising, driven by a combination of regulatory support and shifting consumer preferences towards sustainable products. As the government continues to enforce stricter regulations on plastic waste and promotes eco-friendly initiatives, the market is likely to witness increased investment in biodegradable technologies. Additionally, the growing trend of sustainability in various sectors, including retail and food services, will further enhance the adoption of biodegradable plastics, creating a robust market landscape.

Market Opportunities

• Expansion in Food Packaging Sector:The food packaging sector presents a significant opportunity for biodegradable plastics, with an expected growth rate of 18% annually. As consumers demand sustainable packaging solutions, companies that innovate in biodegradable materials can capture a larger market share, aligning with the increasing regulatory push for eco-friendly packaging.
• Growth in E-commerce and Delivery Services:The rise of e-commerce in KSA, projected to reach SAR 60 billion (approximately USD 16 billion) in the near future, offers a lucrative opportunity for biodegradable plastics. As online retailers seek sustainable packaging solutions to meet consumer expectations, biodegradable materials can play a crucial role in enhancing brand image and reducing environmental impact.