KSA sustainable packaging market report Size, Share, Growth Drivers, Trends, Opportunities & Forecast 2025–2030

Saudi Arabia sustainable packaging market is valued at USD 4,800 million, fueled by government initiatives, technological advancements, and rising e-commerce demand.

Region:Middle East

Author(s):Rebecca

Product Code:KRAC3313

Pages:96

Published On:October 2025

About the Report

Base Year 2024

Saudi Arabia Sustainable Packaging Market Overview

  • The Saudi Arabia Sustainable Packaging Market is valued at approximately USD 4,800 million, reflecting a significant growth driven by increasing consumer awareness regarding environmental sustainability, government initiatives promoting eco-friendly practices, and the rising demand for sustainable packaging solutions across various industries.
  • Key cities such as Riyadh, Jeddah, and Dammam dominate the market due to their significant industrial activities and high population density. These urban centers are witnessing a surge in demand for sustainable packaging solutions, driven by the presence of major retail and food service companies that prioritize eco-friendly practices.
  • The Saudi government has implemented regulations under Vision 2030, emphasizing environmental sustainability by promoting the use of recyclable and biodegradable packaging materials. This initiative aims to reduce plastic waste and align with the country's broader sustainability goals. However, specific regulations mandating all packaging materials in the food and beverage sector to be recyclable or biodegradable by a certain date could not be confirmed.
Saudi Arabia Sustainable Packaging Market Size

Saudi Arabia Sustainable Packaging Market Segmentation

By Packaging Type:

Saudi Arabia Sustainable Packaging Market segmentation by Packaging Type.

The packaging type segment includes Rigid Packaging and Flexible Packaging. Rigid packaging is currently dominating the market due to its widespread use in food and beverage applications, providing durability and protection. Flexible packaging is also gaining traction, particularly in the snack and convenience food sectors, as it offers lightweight and cost-effective solutions. Consumer preferences for convenience and sustainability are driving the growth of both segments, with rigid packaging holding a slight edge due to its established presence in the market.

By Product Type:

Saudi Arabia Sustainable Packaging Market segmentation by Product Type.

The product type segment encompasses Bottles & Jars, Boxes, Bags, Pouches & Sachets, Sustainable Films, and Others. Bottles & Jars are leading this segment, primarily due to their extensive use in the beverage and personal care industries. The demand for eco-friendly alternatives is pushing manufacturers to innovate in this space, with sustainable films also gaining popularity for their lightweight and recyclable properties. Overall, the product type segment is characterized by a shift towards sustainable options, with bottles and jars maintaining a strong market presence.

Saudi Arabia Sustainable Packaging Market Competitive Landscape

The Saudi Arabia Sustainable Packaging Market is characterized by a dynamic mix of regional and international players. Leading participants such as Napco National, Obeikan Investment Group, Arabian Packaging Co., Al Watania for Industries, Almarai Company (Packaging Division), Savola Packaging Systems Co., Tetra Pak Arabia, Huhtamaki Saudi Arabia, Al Bayader International, Greif Saudi Arabia, Al Kifah Paper Products, International Paper Saudi Arabia, United Carton Industries Company (UCIC), Arabian Flexible Packaging Company, Al Rashed Plastic Industries contribute to innovation, geographic expansion, and service delivery in this space.

Napco National

1956

Riyadh

Obeikan Investment Group

1983

Riyadh

Arabian Packaging Co.

1985

Jeddah

Al Watania for Industries

1975

Riyadh

Almarai Company (Packaging Division)

1977

Riyadh

Company

Establishment Year

Headquarters

Group Size (Large, Medium, or Small as per industry convention)

Revenue (USD Million, Latest Year)

Revenue Growth Rate (CAGR %)

Market Share (%)

Product Portfolio Breadth (Number of Sustainable SKUs)

Geographic Presence (Number of Regions/Cities Served in Saudi Arabia)

Saudi Arabia Sustainable Packaging Market Industry Analysis

Growth Drivers

  • Increasing Consumer Demand for Eco-Friendly Products:The Saudi Arabian market is witnessing a significant shift towards eco-friendly products, with a reported 60% of consumers preferring sustainable packaging options. This trend is driven by heightened environmental awareness, as evidenced by a survey indicating that 75% of consumers are willing to pay more for products with sustainable packaging. The growing demand is further supported by the country's Vision 2030 initiative, which aims to enhance sustainability across various sectors.
  • Government Initiatives Promoting Sustainability:The Saudi government has implemented various initiatives to promote sustainable practices, including the National Industrial Development and Logistics Program, which allocates approximately SAR 1.5 billion (USD 400 million) for sustainable packaging projects. Additionally, the government aims to reduce plastic waste by 30% in future, creating a favorable regulatory environment that encourages businesses to adopt sustainable packaging solutions, thus driving market growth.
  • Technological Advancements in Packaging Solutions:The sustainable packaging sector in Saudi Arabia is benefiting from technological innovations, with investments in research and development reaching SAR 500 million (USD 133 million). These advancements include the development of biodegradable materials and smart packaging technologies that enhance product shelf life. As companies increasingly adopt these technologies, the market is expected to expand, catering to the rising demand for sustainable solutions.

Market Challenges

  • High Initial Costs of Sustainable Packaging:One of the primary challenges facing the sustainable packaging market in Saudi Arabia is the high initial investment required for sustainable materials and technologies. For instance, the cost of biodegradable materials can be up to 30% higher than traditional packaging options. This financial barrier can deter small and medium-sized enterprises from transitioning to sustainable practices, limiting overall market growth and adoption.
  • Regulatory Compliance Complexity:Navigating the regulatory landscape for sustainable packaging in Saudi Arabia can be complex, with multiple regulations governing material use and waste management. Companies must comply with the Saudi Standards, Metrology and Quality Organization (SASO) regulations, which can involve extensive documentation and testing. This complexity can lead to increased operational costs and delays in product launches, posing a significant challenge for businesses in the sector.

Saudi Arabia Sustainable Packaging Market Future Outlook

The future of the sustainable packaging market in Saudi Arabia appears promising, driven by increasing consumer awareness and government support for eco-friendly initiatives. As the market evolves, companies are likely to invest more in innovative packaging solutions that align with sustainability goals. Additionally, the rise of e-commerce is expected to further accelerate demand for sustainable packaging, as online retailers seek to enhance their environmental credentials while meeting consumer expectations for responsible packaging practices.

Market Opportunities

  • Expansion of E-commerce and Online Retail:The rapid growth of e-commerce in Saudi Arabia, projected to reach SAR 50 billion (USD 13.3 billion) in future, presents a significant opportunity for sustainable packaging. Online retailers are increasingly seeking eco-friendly packaging solutions to attract environmentally conscious consumers, creating a lucrative market segment for sustainable packaging providers.
  • Innovations in Biodegradable Materials:The development of new biodegradable materials is a key opportunity for the sustainable packaging market. With investments in research expected to exceed SAR 200 million (USD 53 million) in future, companies can leverage these innovations to create packaging solutions that meet consumer demands while reducing environmental impact, positioning themselves competitively in the market.

Scope of the Report

SegmentSub-Segments
By Packaging Type

Rigid Packaging

Flexible Packaging

By Product Type

Bottles & Jars

Boxes

Bags

Pouches & Sachets

Sustainable Films

Others

By Material Type

Polyethylene Terephthalate (PET)

Polyethylene (PE)

Polypropylene (PP)

Bioplastics

Paper & Cardboard

Glass

Metal

Others

By Type

Recyclable Packaging

Reusable Packaging

Biodegradable Packaging

Edible Packaging

Compostable Packaging

Others

By End-Use Industry

Food & Beverage

Personal Care & Cosmetics

Pharmaceuticals & Healthcare

Automobile & Electronics

Retail

Others

By Application

Food Packaging

Beverage Packaging

Cosmetic Packaging

Pharmaceutical Packaging

Industrial Packaging

Others

By Region

North

East

West

South

Central

Key Target Audience

Investors and Venture Capitalist Firms

Government and Regulatory Bodies (e.g., Saudi Standards, Metrology and Quality Organization)

Manufacturers and Producers of Sustainable Packaging Materials

Distributors and Retailers of Eco-friendly Products

Packaging Technology Providers

Industry Associations (e.g., Saudi Packaging Association)

Financial Institutions and Banks

Logistics and Supply Chain Companies

Players Mentioned in the Report:

Napco National

Obeikan Investment Group

Arabian Packaging Co.

Al Watania for Industries

Almarai Company (Packaging Division)

Savola Packaging Systems Co.

Tetra Pak Arabia

Huhtamaki Saudi Arabia

Al Bayader International

Greif Saudi Arabia

Al Kifah Paper Products

International Paper Saudi Arabia

United Carton Industries Company (UCIC)

Arabian Flexible Packaging Company

Al Rashed Plastic Industries

Table of Contents

Market Assessment Phase

1. Executive Summary and Approach


2. Saudi Arabia Sustainable Packaging Market Overview

2.1 Key Insights and Strategic Recommendations

2.2 Saudi Arabia Sustainable Packaging Market Overview

2.3 Definition and Scope

2.4 Evolution of Market Ecosystem

2.5 Timeline of Key Regulatory Milestones

2.6 Value Chain & Stakeholder Mapping

2.7 Business Cycle Analysis

2.8 Policy & Incentive Landscape


3. Saudi Arabia Sustainable Packaging Market Analysis

3.1 Growth Drivers

3.1.1 Increasing Consumer Demand for Eco-Friendly Products
3.1.2 Government Initiatives Promoting Sustainability
3.1.3 Rising Awareness of Environmental Issues
3.1.4 Technological Advancements in Packaging Solutions

3.2 Market Challenges

3.2.1 High Initial Costs of Sustainable Packaging
3.2.2 Limited Availability of Raw Materials
3.2.3 Regulatory Compliance Complexity
3.2.4 Consumer Perception and Acceptance Issues

3.3 Market Opportunities

3.3.1 Expansion of E-commerce and Online Retail
3.3.2 Innovations in Biodegradable Materials
3.3.3 Collaborations with Local Manufacturers
3.3.4 Growing Investment in Circular Economy Initiatives

3.4 Market Trends

3.4.1 Shift Towards Minimalist Packaging Designs
3.4.2 Increased Use of Recyclable Materials
3.4.3 Adoption of Smart Packaging Technologies
3.4.4 Focus on Life Cycle Assessment in Packaging

3.5 Government Regulation

3.5.1 Implementation of Plastic Waste Management Policies
3.5.2 Incentives for Sustainable Packaging Solutions
3.5.3 Regulations on Packaging Waste Reduction
3.5.4 Standards for Biodegradable Packaging Materials

4. SWOT Analysis


5. Stakeholder Analysis


6. Porter's Five Forces Analysis


7. Saudi Arabia Sustainable Packaging Market Market Size, 2019-2024

7.1 By Value

7.2 By Volume

7.3 By Average Selling Price


8. Saudi Arabia Sustainable Packaging Market Segmentation

8.1 By Packaging Type

8.1.1 Rigid Packaging
8.1.2 Flexible Packaging

8.2 By Product Type

8.2.1 Bottles & Jars
8.2.2 Boxes
8.2.3 Bags
8.2.4 Pouches & Sachets
8.2.5 Sustainable Films
8.2.6 Others

8.3 By Material Type

8.3.1 Polyethylene Terephthalate (PET)
8.3.2 Polyethylene (PE)
8.3.3 Polypropylene (PP)
8.3.4 Bioplastics
8.3.5 Paper & Cardboard
8.3.6 Glass
8.3.7 Metal
8.3.8 Others

8.4 By Type

8.4.1 Recyclable Packaging
8.4.2 Reusable Packaging
8.4.3 Biodegradable Packaging
8.4.4 Edible Packaging
8.4.5 Compostable Packaging
8.4.6 Others

8.5 By End-Use Industry

8.5.1 Food & Beverage
8.5.2 Personal Care & Cosmetics
8.5.3 Pharmaceuticals & Healthcare
8.5.4 Automobile & Electronics
8.5.5 Retail
8.5.6 Others

8.6 By Application

8.6.1 Food Packaging
8.6.2 Beverage Packaging
8.6.3 Cosmetic Packaging
8.6.4 Pharmaceutical Packaging
8.6.5 Industrial Packaging
8.6.6 Others

8.7 By Region

8.7.1 North
8.7.2 East
8.7.3 West
8.7.4 South
8.7.5 Central

9. Saudi Arabia Sustainable Packaging Market Competitive Analysis

9.1 Market Share of Key Players

9.2 KPIs for Cross Comparison of Key Players

9.2.1 Company Name
9.2.2 Group Size (Large, Medium, or Small as per industry convention)
9.2.3 Revenue (USD Million, Latest Year)
9.2.4 Revenue Growth Rate (CAGR %)
9.2.5 Market Share (%)
9.2.6 Product Portfolio Breadth (Number of Sustainable SKUs)
9.2.7 Geographic Presence (Number of Regions/Cities Served in Saudi Arabia)
9.2.8 Investment in R&D (% of Revenue)
9.2.9 Sustainability Index (e.g., % Recycled Content, Carbon Footprint Reduction)
9.2.10 Certifications (e.g., ISO 14001, SASO Eco-Label)
9.2.11 Customer Segments Served (e.g., F&B, Healthcare, Retail, etc.)
9.2.12 Major Clients/Partnerships in Saudi Arabia
9.2.13 Operational Efficiency (Lead Time, On-Time Delivery %)
9.2.14 Innovation Rate (Number of New Sustainable Products Launched Annually)
9.2.15 Employee Count (Saudi Arabia Operations)

9.3 SWOT Analysis of Top Players

9.4 Pricing Analysis

9.5 Detailed Profile of Major Companies

9.5.1 Napco National
9.5.2 Obeikan Investment Group
9.5.3 Arabian Packaging Co.
9.5.4 Al Watania for Industries
9.5.5 Almarai Company (Packaging Division)
9.5.6 Savola Packaging Systems Co.
9.5.7 Tetra Pak Arabia
9.5.8 Huhtamaki Saudi Arabia
9.5.9 Al Bayader International
9.5.10 Greif Saudi Arabia
9.5.11 Al Kifah Paper Products
9.5.12 International Paper Saudi Arabia
9.5.13 United Carton Industries Company (UCIC)
9.5.14 Arabian Flexible Packaging Company
9.5.15 Al Rashed Plastic Industries

10. Saudi Arabia Sustainable Packaging Market End-User Analysis

10.1 Procurement Behavior of Key Ministries

10.1.1 Ministry of Environment, Water and Agriculture
10.1.2 Ministry of Commerce
10.1.3 Ministry of Health
10.1.4 Ministry of Industry and Mineral Resources

10.2 Corporate Spend on Infrastructure & Energy

10.2.1 Investment in Sustainable Packaging Solutions
10.2.2 Budget Allocation for Eco-Friendly Initiatives
10.2.3 Partnerships with Sustainable Suppliers

10.3 Pain Point Analysis by End-User Category

10.3.1 Cost Constraints
10.3.2 Supply Chain Disruptions
10.3.3 Compliance with Regulations

10.4 User Readiness for Adoption

10.4.1 Awareness of Sustainable Practices
10.4.2 Willingness to Pay for Eco-Friendly Options

10.5 Post-Deployment ROI and Use Case Expansion

10.5.1 Measurement of Cost Savings
10.5.2 Expansion into New Markets
10.5.3 Long-term Sustainability Goals

11. Saudi Arabia Sustainable Packaging Market Future Size, 2025-2030

11.1 By Value

11.2 By Volume

11.3 By Average Selling Price


Go-To-Market Strategy Phase

1. Whitespace Analysis + Business Model Canvas

1.1 Identification of Market Gaps

1.2 Value Proposition Development

1.3 Revenue Streams

1.4 Key Partnerships

1.5 Customer Segments

1.6 Cost Structure

1.7 Channels


2. Marketing and Positioning Recommendations

2.1 Branding Strategies

2.2 Product USPs


3. Distribution Plan

3.1 Urban Retail vs Rural NGO Tie-ups


4. Channel & Pricing Gaps

4.1 Underserved Routes

4.2 Pricing Bands


5. Unmet Demand & Latent Needs

5.1 Category Gaps

5.2 Consumer Segments


6. Customer Relationship

6.1 Loyalty Programs

6.2 After-sales Service


7. Value Proposition

7.1 Sustainability

7.2 Integrated Supply Chains


8. Key Activities

8.1 Regulatory Compliance

8.2 Branding

8.3 Distribution Setup


9. Entry Strategy Evaluation

9.1 Domestic Market Entry Strategy

9.1.1 Product Mix
9.1.2 Pricing Band
9.1.3 Packaging

9.2 Export Entry Strategy

9.2.1 Target Countries
9.2.2 Compliance Roadmap

10. Entry Mode Assessment

10.1 JV

10.2 Greenfield

10.3 M&A

10.4 Distributor Model


11. Capital and Timeline Estimation

11.1 Capital Requirements

11.2 Timelines


12. Control vs Risk Trade-Off

12.1 Ownership vs Partnerships


13. Profitability Outlook

13.1 Breakeven Analysis

13.2 Long-term Sustainability


14. Potential Partner List

14.1 Distributors

14.2 JVs

14.3 Acquisition Targets


15. Execution Roadmap

15.1 Phased Plan for Market Entry

15.1.1 Market Setup
15.1.2 Market Entry
15.1.3 Growth Acceleration
15.1.4 Scale & Stabilize

15.2 Key Activities and Milestones

15.2.1 Activity Planning
15.2.2 Milestone Tracking

Research Methodology

ApproachModellingSample

Phase 1: Approach1

Desk Research

  • Analysis of market reports from industry associations and government publications on sustainable packaging trends in Saudi Arabia
  • Review of academic journals and white papers focusing on environmental impacts and innovations in packaging materials
  • Examination of trade statistics and import/export data related to sustainable packaging products

Primary Research

  • Interviews with key stakeholders in the packaging industry, including manufacturers and suppliers of sustainable materials
  • Surveys conducted with end-users in various sectors such as food and beverage, cosmetics, and consumer goods
  • Focus group discussions with consumers to gauge perceptions and preferences regarding sustainable packaging

Validation & Triangulation

  • Cross-validation of findings through comparison with existing market studies and reports
  • Triangulation of data from interviews, surveys, and secondary research to ensure consistency and reliability
  • Sanity checks through expert panel reviews involving industry veterans and sustainability experts

Phase 2: Market Size Estimation1

Top-down Assessment

  • Estimation of the total market size based on national packaging industry revenue and growth rates
  • Segmentation of the market by material type (biodegradable, recyclable, etc.) and end-user industries
  • Incorporation of government initiatives and regulations promoting sustainable packaging solutions

Bottom-up Modeling

  • Collection of data on production volumes from leading sustainable packaging manufacturers in Saudi Arabia
  • Cost analysis of sustainable packaging materials versus traditional options to assess market viability
  • Estimation of market share based on sales data from key players and emerging startups in the sector

Forecasting & Scenario Analysis

  • Development of forecasting models based on historical growth trends and projected regulatory changes
  • Scenario analysis considering varying levels of consumer adoption and technological advancements in packaging
  • Creation of multiple growth scenarios (baseline, optimistic, and pessimistic) through 2030

Phase 3: CATI Sample Composition1

Scope Item/SegmentSample SizeTarget Respondent Profiles
Food & Beverage Packaging120Packaging Managers, Product Development Leads
Cosmetics & Personal Care Packaging80Brand Managers, Sustainability Coordinators
Consumer Goods Packaging100Supply Chain Managers, Marketing Directors
Retail Sector Insights60Retail Operations Managers, Procurement Specialists
Recycling and Waste Management40Environmental Compliance Officers, Waste Management Experts

Frequently Asked Questions

What is the current value of the Saudi Arabia Sustainable Packaging Market?

The Saudi Arabia Sustainable Packaging Market is valued at approximately USD 4,800 million, reflecting significant growth driven by consumer awareness of environmental sustainability and government initiatives promoting eco-friendly practices across various industries.

Which cities are leading in the Saudi Arabia Sustainable Packaging Market?

What government initiatives support sustainable packaging in Saudi Arabia?

What are the main types of sustainable packaging in Saudi Arabia?

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