Saudi Arabia Paper Packaging Market

Saudi Arabia Paper Packaging Market Size and Share:

The Saudi Arabia paper packaging market size was valued at USD 3.19 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 4.71 Billion by 2033, exhibiting a CAGR of 4.18% from 2025-2033. The increasing demand for sustainable packaging solutions, the growing e-commerce industry, rising consumer awareness of eco-friendly products, expansion in the food and beverage (F&B) sector, and government initiatives promoting sustainability are a few factors impelling the market growth in the region.

The Saudi Arabian paper packaging market is gaining pace because of the growing emphasis on sustainability and environmental responsibility. Moreover, the increasing awareness among consumers regarding eco-friendly alternatives and growing governmental restrictions on plastic usage are helping the market to grow. For example, international certification like Forest Stewardship Council (FSC) and Programme for the Endorsement of Forest Certification (PEFC) encourage firms to adopt paper packaging.  Moreover, the surge in e-commerce activity, driven by changing shopping habits and convenience, is boosting the use of paper packaging for shipping and delivery, thus contributing to the market expansion. Furthermore, the F&B industry is transitioning toward recyclable and biodegradable packaging materials to meet customer preferences and align with global environmental standards, significantly catalyzing the market growth.

Concurrently, government initiatives, such as Saudi Vision 2030, are creating a favorable environment for the growth of the paper packaging market by promoting sustainability and reducing environmental impact. Besides this, the expanding retail and industrial sectors, coupled with advancements in paper packaging technologies, are enabling more efficient and cost-effective production, which is impelling the market growth. Additionally, businesses are increasingly adopting premium, innovative, and customizable paper packaging solutions to enhance brand identity and consumer appeal, providing an impetus to the market. For example, consumer in Saudi Arabia is willing to spend 11-20% above the average prices on customized and locally manufactured goods and services. As a result, these factors are positioning the paper packaging industry as a vital contributor to Saudi Arabia’s sustainability goals and economic diversification efforts, thereby propelling the market forward.

Saudi Arabia Paper Packaging Market Trends:

Shift toward sustainable packaging:

The increasing focus on substantial packaging is driving the market demand in the region. In line with this, the popularity of environmental conservation and the increase in the usage of sustainable products are encouraging authorities to reduce the usage of plastic and create biodegradable packaging products. For example, Saudi Investment Recycling Company (SIRC) has the vision to recycle 82% of the total waste generation to avoid landfill by 2035, through recycling, reusing, treatment, and waste-to-energy streams. Moreover, as consumers are favoring eco-friendly products, industries such as F&B, and retail are concerned are tapping into paper-based packaging, materials. This shift is further propelled by the reduction of carbon emissions that align with the environmental conservation goals. As a result, it is making paper packaging an ideal packager suited to organizations that need to improve on their green cover and follow compliance with set legal requirements, thereby supporting the market growth.

Expansion of e-commerce and online retail:

The expansion of e-commerce is boosting the market demand in the region. For instance, Saudi Arabia has a continuously growing retail sector that makes up 23% of the non-oil gross domestic product. Global e-commerce has led to higher requirements for weight, ease of transportation, and effectiveness of protecting goods. Besides this, recyclable paper-based products are used as bottled packing material, shipping cartons, and mailers. Furthermore, as clients become more conscious of their environmental impact, companies look for efficient and inexpensive means of fulfilling this need for packaging, as it is an essential component of the e-business industry. Apart from this, the increasing number of digital retail platforms are producing new ideas for durable and tailored packaging related to online selling and delivery, which is strengthening the market share.

Technological advancements in paper packaging:

The ongoing technological advancements are surging the market demand in the region. In addition, techniques including digital printing, better barrier coatings, and lightweight material formation provide efficient and elastic packaging. These technologies meet the requirements of industries like F&B, pharmaceutical, and other consumer products, as they demand the use of high-performance packages. For instance, the Paper Middle East Saudi Arabia 2024 fair showcased innovative and sustainable solutions for paper packaging, aligning with the Saudi Vision 2030 growth targets in the industry. Moreover, the need to attain superior design, branding, and functionality is allowing organizations to adopt the best solutions. Furthermore, new technologies that cater to the requirement of sustainability and cost control enable paper-based packaging materials to appear more attractive and competitive, thus impelling the market growth.

Saudi Arabia Paper Packaging Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the Saudi Arabia paper packaging market, along with forecasts at the country and regional levels from 2025-2033. The market has been categorized based on product type, grade, packaging level, and end use industry.

Analysis by Product Type:

• Corrugated Boxes
• Folding Boxes and Cases
• Liquid Paperboard Cartons
• Paper Bags and Sacks
• Others
   

Corrugated boxes are the most common in the paper packaging industry because they are strong, lightweight, and offer flexibility. They are widely used in industries, including electronic businesses, and retail store businesses, as they offer protective solutions during carriage and storage. Moreover, the expanding e-commerce industry is promoting the demand for green packaging materials, which is providing an impetus to the market.

Additionally, refrigerated and non-refrigerated folding boxes and cases are the most preferred solutions by the F&B industries and the consumer goods market. These are commonly used for packaging small and low-weight products, as they provide better solutions than plastic packaging. Besides this, the growth of aesthetic value and the increased use of high-quality packaging materials to capture the attention of consumers, especially in supermarkets is bolstering the market demand.

Concurrently, liquid paperboard cartons are extensively used in packing beverages, dairy products, and most liquid-styled food items. They offer superb barrier capabilities offering protection to the product quality along with long shelf life. In confluence with this, their ease of recyclability and the upsurge in the organism's healthy sustainable consumer habits are significantly strengthening the market share.

Furthermore, paper bags and sacks such as shopping bags, and cartons are convenient for carrying foods, retail products, and construction materials such as cement. The initiatives by the governments to consume environmentally friendly materials are increasing the adoption of paper bags. Moreover, they are easy to brand when used in the retail and hospitality industries, and acceptable because they degrade naturally, thereby fueling the market demand.

Analysis by Grade:

• Solid Bleached
• Coated Recycled
• Uncoated Recycled
• Others
   

Solid bleached paper grades are widely used for premium packaging applications due to their smooth surface, excellent printability, and high-quality appearance. They are preferred in industries like cosmetics, pharmaceuticals, and luxury goods. Apart from this, the rising demand for visually appealing, high-end packaging in the retail and food sectors is impelling the market growth.

Additionally, coated recycled grades are consumed because of their environmentally friendly attributes and high levels of performance. These bags are leveraged in the F&B industry, e-commerce, and consumer products industry, due to their sustainability. Besides this, their coating offers an attractive and improved surface for various packaging requirements, aligning with regulatory standards, thus providing an impetus to the market.

Furthermore, uncoated recycled grades are a cost-effective and sustainable option for basic packaging requirements. They are used in industrial and bulk packaging, owing to their natural and simple appearance, reflecting eco-conscious values. Also, the increasing demand for environmentally responsible solutions in sectors like agriculture, construction, and retail is contributing to the market expansion.

Analysis by Packaging Level:

• Primary Packaging
• Secondary Packaging
• Tertiary Packaging
   

Primary packaging directly contains and protects the product, ensuring safety and freshness. They are commonly used in food, beverages, and pharmaceuticals, as paper-based options like cartons, paperboard boxes, and paper wraps are favored for their recyclability and sustainability, which is catalyzing the market demand.

Whereas secondary packaging groups individual products for branding and convenience, because it provides additional protection during transportation. Besides this, the need for cost-effective, visually appealing, and sustainable packaging to enhance product presentation and protection is significantly contributing to the market expansion.

Concurrently, tertiary packaging is primarily used for handling, transportation, and storage. The paper is more durable, stronger, and recyclable, making it ideal for application in logistics and industries. Apart from this, the increasing emphasis on sustainable supply chains encourages more extensive use of paper-based tertiary packaging solutions, thereby propelling the market forward.

Analysis by End Use Industry:

• Food
• Beverage
• Personal Care and Home Care
• Healthcare
• Others
   

Paper-based packaging is extensively utilized in the food industry, especially for bakery products, snacks, and ready-to-eat (RTE) foods. There is increased consumer preference for packaging made from recyclable and biodegradable material. Moreover, products such as cartons and wraps made from paper-based material meet the necessary safety and hygiene standards, boosting the market demand.

Furthermore, beverage packaging, including liquid paperboard cartons and carriers, emphasizes sustainability and product preservation. In addition, the paper packaging ensures extended shelf life and easy recyclability, catering to consumer preferences for environmentally friendly solutions. Also, the increasing shift from plastic bottles to paper-based cartons, particularly for juices and dairy products, is supporting the market growth.

Besides this, industries like personal care and home care are integrating paper packaging for products such as soaps, detergents, and cosmetics. The change in trend from conventional packaging to sustainable and premium packaging is driven by the demand for environment-friendly and aesthetic packaging material. Moreover, it is versatile and attracts brandings from various sectors, thus fostering the market expansion.

Moreover, the healthcare industry relies on paper packaging for items like pharmaceutical cartons, medical device boxes, and blister packaging. Paper ensures product safety, easy handling, and compliance with regulatory standards. Apart from this, the increasing demand for sustainable and sterile solutions, coupled with advancements in protective coatings, is driving the market growth.

Regional Analysis:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region
   

The demand in the northern and Central regions is rising due to the growing economic investment and industrialization. These create the need for paper packaging in industries such as the F&B industries, and the e-commerce industries. Moreover, the growth of the paper packaging industry in the region is supported by the increasing retail markets and governmental concern for the environment, thus supporting the market growth.

In the Western region, the demand is surging, driven by the high demand for paper packaging due to its thriving tourism, hospitality, and retail industries. Besides this, the increased disposable income and rising focus on sustainable alternatives drive packaging needs in this region. Also, the F&B sectors are strong contributors to the adoption of paper packaging, catalyzing the market demand.

The demand in the Eastern region is growing due to the advantage of its industrial sector and closeness to oil and gas assets. Industrial packaging has the largest application, because of the increasing sales of consumer goods in the region. Apart from this, the growth in environmental conservation consciousness and e-business is contributing to the market expansion.

In the Southern region, the demand is increasing, driven by the focus of the region on agriculture and smaller industrial hubs, primarily for bulk and agricultural products. Moreover, the increasing awareness of sustainable solutions among businesses and consumers is promoting retail and food distribution networks to adopt paper packaging, thereby providing an impetus to the market.

Competitive Landscape:

The Saudi Arabia paper packaging market is competitive, with domestic manufacturers and international players driving growth through innovation and sustainability. Local companies are leveraging government support and initiatives to enhance production capacities and meet regional demand, while global firms focus on advanced technologies and eco-friendly packaging solutions. Key players are entering strategic alliances, expanding facilities, and offering customized products to cater to industries such as food, beverages, healthcare, and e-commerce. Smaller manufacturers are targeting niche markets with cost-effective and biodegradable options. Additionally, the rising demand for premium, recyclable packaging is pushing companies to adopt sustainable practices and circular economy models.

The report provides a comprehensive analysis of the competitive landscape in the Saudi Arabia paper packaging market with detailed profiles of all major companies.

Latest News and Developments:

• In December 2024, Juthor Paper, part of the Middle East Paper Company (MEPCO) Group, secured a major order for a high-speed double-width tissue machine from ANDRITZ, to enhance production capacity and efficiency in tissue manufacturing.
• In October 2024, Tetra Pak launched its 'Made, consumed and recycled in Saudi Arabia’ campaign, enforcing the company’s commitment to the economic diversification of the Kingdom’s economy and embracing the opportunity to highlight food packaging and manufacturing in the region.
• In January 2024, The Public Investment Fund (PIF) successfully acquired a 23.08% stake in the Middle East Paper Company (MEPCO) through a capital increase, enhancing MEPCO's capabilities in manufacturing and recycling paper products. This investment aims to bolster MEPCO's production efficiency and support sustainability initiatives aligned with Saudi Arabia's Vision 2030. PIF's involvement will facilitate MEPCO's expansion into packaging and building materials, fostering local supply chains and contributing to economic diversification by empowering priority sectors like construction and retail.
• In April 2024, the Middle East Paper manufacturing and Production Company (MEPCO) announced a SAR 1.78 billion investment in a fifth production line to boost annual cardboard paper production capacity by 450,000 tons, aiming to enhance competitiveness and support environmental sustainability through recyclable products, aligning with Saudi Arabia's Vision 2030 goals.

Saudi Arabia Paper Packaging Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Saudi Arabia paper packaging market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the Saudi Arabia paper packaging market.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Saudi Arabia paper packaging industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.