Saudi packaging industry expected to reach US$5.5 bln in 2015

The Saudi packaging industry, which was valued at US$4.4 bln in 2010, is expected to reach US$5.5 bln in 2015. The industry is expected to grow at a CAGR (Compound Annual Growth Rate) of 4.58% during 2011-15, largely driven by change in consumer lifestyle and growing consumption in the food and beverage sector. Increase in per capita income, busy lifestyle, growing participation of women in the workforce and aggressive marketing from food companies have fueled the demand for pre-packaged food. The food and beverage sector, growing at a double digit rate, accounts for nearly 75% of the total consumption of packaging material in the country. Going forward, the food and beverage sector is expected to continue the growth trend. Per capita consumption of packaging material is expected to increase in the country. Saudi Arabia remains the largest market for food and beverage in the Gulf region representing more than 60% of the market in 2010. With the government's emphasis on the food security plan to achieve self dependence and security, the share of agriculture produce in the total GDP of the country, which was 3% in 2009, is expected to grow. The country requires further growth in its food processing and food packaging technologies to achieve self sufficiency in the food sector, which will be a boon for the packaging industry. This has been and is expected to remain a major factor behind the packaging industry's growth in the country. The domestic competitive landscape in the packaging industry is dominated by local companies. Only a few foreign companies exist through joint ventures with or acquiring shares of domestic companies. Since the government regulations for international companies are rigid, companies that do not have wholly owned subsidiaries in the kingdom face strict regulatory barriers to enter into the domestic market. Also, the domestic participation of not less than 25% has to be fulfilled in case of a joint venture to be eligible for financial benefits for the foreign investors. The private consumption expenditure (defined as the purchase of goods and services for consumption by domestic private households) has shown a healthy growth of 8.2% in 2009, well ahead of the global average of 6.4% and is expected to grow at 8% in 2010 and 2011. With increased expenditure of households in the country on the purchase of goods and services, consumption of packaging material will also increase in tandem.
  More News  Post Your Comment
{{comment.Name}} made a post.




There are no comments to display. Be the first one to comment!


Name Required.


Email Id Required.

Email Id Not Valid.


Mobile Required.

Email ID and Mobile Number are kept private and will not be shown publicly.

Message Required.

Click to Change image  Refresh Captcha
Reclamax single step plastic recycling machine

Reclamax single step plastic recycling machine