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Saudi Arabia Metal Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

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  • 110 Pages
  • April 2023
  • Region: Saudi Arabia
  • Mordor Intelligence
  • ID: 5764463
The Saudi Arabia Metal Packaging market is expected to grow at a CAGR of 3.1% during the forecast period. One of the key factors behind the growth of the metal packaging market is the increasing consumption of canned foods and beverages. The growing use of metal containers in the food sector is mainly due to their various advantages, such as higher mechanical strength and better sealing than other packaging materials.

Key Highlights

  • The food and beverage sector has become one of the areas of interest as the region invests in other industries, such as metal packaging, besides oil and gas. The major drivers of the canned food market in Saudi Arabia are the growing urban population, rising foreign population, and rapid innovation in product and packaging solutions.
  • Metal cans are widely used to store all kinds of products. In Saudi Arabia, it is also mainly used for industrial storage purposes due to its superior safety and durability of industrial products. Metal may not look flashy, but it is an essential packaging option for manufacturers, industries, and consumers.
  • The Saudi Arabia packaging industry follows protective norms required by law for metal containers, making them robust and dependable. Apart from primary shieldings such as mildew and moisture resistance, rust or shock resistance, they also have anti-electromagnetic protection shields - an applicable packaging quality for industrial goods. Such features drive market growth in the country.
  • Due to the desert climatic conditions resulting in high-temperature experience, the region's beverage demand is also increasing. However, with most of the region facing alcohol bans, demand metal cans is limited to the use in a non-alcoholic application. Thus the demand in the region is mainly impacted by it.
  • The economic impact of the COVID-19 pandemic has pushed Saudi Arabia into recession in 2020, lowering real GDP and the actual value of private consumption and increasing unemployment due to the closure of non-essential businesses. COVID-19 caused a significant and growing impact on the country's metals sector due to significant reductions in demand, supply disruptions, and transportation difficulties in key value chains. Further, the Russia-Ukraine war has an impact on the overall packaging ecosystem, with the price of raw materials and energy costs rising.

Saudi Arabia Metal Packaging Market Trends

Increasing Demand for Steel Material

  • Saudi Arabia's packaging industry follows legally mandated protection standards for metal containers, making them solid and reliable. Metal containers usually come with protective packaging. In addition to essential shieldings such as mildew, moisture, rust, and impact resistance, it also has electromagnetic shielding, an applicable packaging quality when industrial products are involved.
  • In September 2022, the Saudi Minister of Industry and Mineral Resources announced three projects being built in the iron and steel sector with a combined production capacity of 6.2 million tonnes and a value of around SAR 35 billion (USD 9.3 billion approximately). Such government initiatives will leverage various industries' steel markets and packaging.
  • Metal packaging is becoming more environmentally friendly as companies seek more effects and applications in various industries. Many industries rely almost entirely on such containers for storage. For instance, one of the leading packaging suppliers in Saudi Arabia, SAPIN, is a one-stop shop for all metal packaging needs. They are a well-known metal and packaging jar supplier in KSA and UAE.

Food Industry to Witness Growth in the Country

  • The metal packaging industry is one of the prominent industries contributing to Saudi Arabia's GDP. Various other economies are also engaging in trade activities with Saudi Arabia regarding the import of its metal packaging products, such as cans, containers, etc. This is anticipated to fuel the growth of the country's metal packaging market over the forecast period.​
  • The metal packaging for various food items over plastic bottles is expected to increase in Saudi Arabia due to the several regulations passed by the government over plastic. ​Also, the ban on non-biodegradable plastics in the country has been shifting the end-users focus towards alternative materials such as metal.
  • Using metal bottles, cans and containers would eliminate recycling as these bottles and containers can be thoroughly washed and reused. Further, the recycling of metal is less compared to that of plastic. This is anticipated to aid in the growth of metal packaging in the food and other sectors of the market studied in the country.​
  • Food companies in the country also focus on collaborations as part of their regional business expansion. For instance, in July 2022, US-based Tyson Foods, Inc. and Saudi Arabia-based Tanmiah Food Company entered a strategic partnership. This partnership is anticipated to accelerate the growth of Tyson Foods and Tanmiah and create significant value in the short and long term. Such initiatives would further leverage the metal packaging market in the food sector.
  • Moreover, with increased tourism, many international food outlets and grocery stores are growing in the country. Metal cans are preferred for food packaging for various reasons, including heat-conductivity, hygiene, and safety, making them a convenient choice for the domestic and industrial sectors. Aluminum cans are widely used in the food industry for packaging meat and seafood, fruits and vegetables, ready meals, pet food, soups and condiments, and others. Such a broad end-user market is creating significant demand for aluminum cans catering to the food industry.

Saudi Arabia Metal Packaging Market Competitor Analysis

The Saudi Arabia Metal Packaging Market is moderately fragmented, with a few big players such as Ball Corporation, Crown Holdings Inc., Can-Pack SA, Sonoco Products Company, SAPIN WLL, and more. Companies are expanding their business with new product innovations, acquisitions, collaborations, etc., to increase their market share.

In November 2022, As part of promoting its products and sustainability, SAPIN participated in Gulfood Manufacturing 2022, one of the largest food and beverage processing and packaging shows in the Middle East, Asia, and Africa. The company has grown to become the chosen supplier for national and multinational companies and operates a total of 4 facilities across the K.S.A and U.A.E.

In February 2022, Crown Holdings, Inc. announced that it would work with industry partners to meet new global recycling targets for aluminum beverage cans. The goal is scheduled to be completed by 2030, focusing on metals' recyclability to advance Crown's sustainability efforts and commitment to fostering a more responsible industry. The new targets are related to regions where the company maintains operations, such as EMEA. The company aims to reach 80% recycling rates by working with industry partners.

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Table of Contents

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
4.1 Market Overview
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness - Porter Five Forces
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Intensity of Competitive Rivalry
4.3.5 Threat of Substitutes
4.4 Impact of COVID-19 on the Paper Packaging Industry in France
5.1 Market Drivers
5.1.1 Increased Recyclability Rates of Metal Packaging
5.2 Market Restraints
5.2.1 Availability Of Alernative Packaging Solutions
6.1 By Material Type
6.1.1 Aluminum
6.1.2 Steel
6.2 By Product Type
6.2.1 Cans Food Cans Beverage Cans Aerosol Cans
6.2.2 Bulk Containers
6.2.3 Shipping Barrels and Drums
6.2.4 Caps and Closures
6.2.5 Other Product Types
6.3 By End-User Vertical
6.3.1 Beverage
6.3.2 Food
6.3.3 Paints and Chemicals
6.3.4 Industrial
6.3.5 Other End-User
7.1 Company Profiles
7.1.1 Ball Corporation
7.1.2 AFMACO
7.1.3 Crown Holdings Inc.
7.1.4 Southern Can Making Co. Ltd.
7.1.5 Can-Pack SA
7.1.6 Saudi Can Co. Ltd.
7.1.8 Sonoco Products Company
7.1.9 Sapin WLL

Companies Mentioned (Partial List)

A selection of companies mentioned in this report includes, but is not limited to:

  • Ball Corporation
  • Crown Holdings Inc.
  • Southern Can Making Co. Ltd.
  • Can-Pack SA
  • Saudi Can Co. Ltd.
  • Sonoco Products Company
  • Sapin WLL