Saudi Arabia Plastic Packaging - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)

The Saudi Arabia plastic packaging market is expected to grow from USD 8.59 billion in 2025 to USD 8.86 billion in 2026 and is forecast to reach USD 10.31 billion by 2031 at 3.15% CAGR over 2026-2031.

The steady pace of expansion aligns with Vision 2030’s localization incentives that draw global converters into specialized clusters such as NEOM and Ras Al Khair. Rising non-oil exports, a vibrant food-and-beverage sector, and sustained population growth underpin demand for lightweight, high-barrier formats. Brand owners are shifting toward multilayer pouches and recyclable mono-material films to curb logistics costs and comply with Saudi Standards, Metrology and Quality Organization (SASO) requirements. Meanwhile, integrated petrochemical producers leverage feedstock advantages to stabilize resin pricing for domestic converters amid global volatility.

Saudi Arabia Plastic Packaging Market Trends and Insights

Rising Demand from Food and Beverage Sector for Convenient Lightweight Packaging

Rapid urbanization and a median age below 30 propel on-the-go consumption that favors portion-controlled pouches and resealable stand-up bags. Domestic manufacturers expanding chilled ready-meal lines rely on multilayer films to prolong shelf life and cut food waste. Vision 2030’s ‘Saudi Made’ labeling initiative magnifies export opportunities, driving converters to adopt higher oxygen-barrier laminates fit for trans-continental shipping. Retailers also push for downgauged rigid bottles to reduce freight emissions, helping the Saudi Arabia plastic packaging market achieve incremental volume gains without proportional resin growth.

Government Regulations Promoting Oxo-Biodegradable Plastics Compliance

The National Center for Waste Management targets a 40% recycling rate by 2035, spurring mandatory oxo-biodegradable additives in single-use shopping bags. Early adoption zones in NEOM and Ras Al Khair function as regulatory sandboxes where converters test ISCC+-certified resins supplied by SABIC under its TRUCIRCLE program. As SASO standards tighten life-cycle assessments, brand owners lock in longer-term supply contracts for certified polymers, supporting mid-single-digit price premiums that buoy margins across the Saudi Arabia plastic packaging market.

Volatility in Crude-Derived Resin Prices Squeezing Converter Margins

Spot LDPE prices swung 27 % across 2024-2025, eroding the gross margin of non-integrated converters by nearly 400 basis points. SABIC posted a SAR 1.2 billion net loss in early 2025, citing unfavorable spreads between naphtha and polyethylene. Smaller film companies struggle to hedge costs, prompting accelerated interest in long-term off-take with domestic crackers.

Other drivers and restraints analyzed in the detailed report include:

• Expansion of E-commerce and Modern Retail Accelerating Flexible Packaging Uptake
• Growing Pharmaceutical Manufacturing Under Vision 2030 Boosting Sterile Packaging
• Low Domestic Plastic Recycling Infrastructure Limiting Circular Packaging Adoption

Segment Analysis

Rigid containers generated 52.12% of 2025 revenue, anchored by PET water bottles and HDPE jerrycans that satisfy stringent SASO drop-test criteria. That base ensures predictable throughput across the Saudi Arabia plastic packaging market size even as unit growth slows to 2.03% annually. Flexible formats, however, are tracking a 4.25% CAGR, thanks to better cube efficiency and lower last-mile damages for e-commerce shipments. Converter orders for 11-layer blown-film lines surged 18% in 2024, allowing local firms to supply high-oxygen-barrier snack pouches previously imported. Supermarkets amplify uptake by dedicating 15% more shelf space to stand-up bags of rice and pulses, validating retailer willingness to reconfigure planograms in favor of flexible packs.

Demand drivers vary by channel: HORECA buyers cling to rigid gallon jugs for water dispensers, whereas beauty brands launch refill pouch programs that cut plastic weight by 70% per use cycle. The combined result supports a gradual, rather than disruptive, substitution pattern that keeps overall tonnage balanced while lifting value density in the Saudi Arabia plastic packaging market.

Polyethylene retained 31.05% revenue share in 2025, its versatility spanning shrink film, squeezable tubes, and detergent bottles. Volume resilience ensures that polyethylene still represents over one-third of the Saudi Arabia plastic packaging market share despite feedstock gyrations. Specialty barriers led by EVOH, cyclic olefins, and metallized PET record a 4.32% CAGR, buoyed by date export pouches and pharma blister demand. SABIC’s pilot plant for advanced barrier resins inside Riyadh Techno-Valley will scale to 50 kt/yr by 2027, offering local converters secure supply of high-oxygen-barrier grades.

Polypropylene enjoys steady traction in snack-food overwraps where stiffness and clarity edge out LDPE. PET remains dominant in carbonated soft drinks due to carbonation retention and cost parity with returnable glass. Conversely, PVC clings to industrial chemical duty lines but faces gradual phase-out in consumer goods following SASO hazard labeling updates.

The Saudi Arabia Plastic Packaging Market Report is Segmented by Packaging Type (Rigid Plastic, and Flexible Plastic), Material (Polyethylene, PET, Polypropylene, Polystyrene and EPS, PVC, EVOH and More), End-User Industry (Food, Beverage, Healthcare and Pharmaceutical, Personal Care and More), Pack Format (Bottles and Jars, Caps and Closures, Pouches and More). The Market Forecasts are Provided in Terms of Value (USD).

List of companies covered in this report:

• National Paper Products Company
• Akram K. Bader and Partner Co.
• Sealed Air Saudi Arabia Co. Ltd
• Saudi Basic Industries Corporation (SABIC)
• Arabian Plastic Industrial Company Limited (APICO)
• Zamil Plastic Industries Co.
• Arabian Plastic Industrial Company Limited
• Takween Advanced Industries
• Advanced Flexible Packaging Co.
• Gulf Packaging Industries Ltd
• Octal Group
• Obeikan Investment Group
• Al Watania Plastics
• Filling and Packing Materials Mfg Co. (FIPCO)
• Amcor PLC
• Al-Rowad National Plastic Co.

Additional benefits of purchasing this report:

• Access to the market estimate sheet (Excel format)
• 3 months of analyst support