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

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  • 105 Pages
  • April 2023
  • Region: Saudi Arabia
  • Mordor Intelligence
  • ID: 5459067
UP TO OFF until Dec 31st 2023
Saudi Arabia's Glass Packaging Market is expected to grow at a CAGR of 6.5% during the forecast period. The glass industry provides a range of glass packaging products for food and beverage, as well as for perfumery, cosmetics, and pharmacy. This form of packaging is considered one of the most trusted for health, taste, and environmental safety, as it maintains the freshness and security of the product inside for an extended period.

Key Highlights

  • The glass 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 glass packaging products, such as jars, bottles, etc. Over the forecast period, it is expected to fuel the country's glass bottles and containers market growth.
  • Saudi Arabia is the largest economy in the Middle East region by GDP and population. It includes the largest pharmaceuticals market in the Gulf Cooperation Council (GCC) region. The pharmaceutical industry is expected to contribute majorly to glass packaging solutions in Saudi Arabia.
  • According to the Saudi organization (SASO), plastic products must be made of an approved oxo-biodegradable material, which might restrict the import of plastics into the country. Hence, several factors are expected to change the adoption trends of cosmetic packaging in the country.
  • Further, the ban on non-biodegradable plastics in the country shifted the end-user's focus towards alternative materials such as glass and metal. According to the responsible Saudi organization (SASO), plastic products must be made of approved oxo-biodegradable material.
  • Products and packaging made with polyethylene or polypropylene must comply with the new rules and contain an oxo-biodegradable masterbatch from a supplier approved by the Saudi Arabian government.
  • Moreover, one of the significant trends in the market is a growing demand for natural and personalized products in the country. There is a rapidly growing interest and demand for halal beauty products. As the region mainly constitutes a Muslim population, these products have gained popularity in the country and are not limited to the Muslim community only. They have also gained interest among Non-Muslim consumers, which is the primary factor in the country's growth of halal and vegan cosmetics products, ultimately driving the glass packaging demand.
  • One of the main challenges for the market is the increased competition from alternative packaging forms, such as aluminum cans and plastic containers. As these items are lighter in weight than bulky glass, they are gaining popularity among manufacturers and customers because of the lower cost involved in their carriage and transportation.
  • Glass packaging was considered an essential industry by many countries, including Saudi Arabia, during the COVID-19 pandemic. The industry is witnessing increased demand from the food & beverage and pharmaceutical sectors. There is an increased demand for glass packaging from the F&B and pharmaceutical sectors, as the COVID-19 pandemic led to a greater need for medicine bottles, food jars, and beverage bottles. There is also an impact of the Russia-Ukraine war on the overall packaging ecosystem.

Saudi Arabia Glass Packaging Market Trends

Glass Bottles and Containers Expected to Witness Significant Growth

  • Economic stability and improvement in the Middle East have led to an increase in disposable income. This factor, coupled with the increasing glass use in the packaging of luxury cosmetics and consumer products, led to a demand for glass bottles and containers. Also, growing awareness of glass's health and environmental benefits led consumers to buy glass bottles.
  • Saudi Arabia is witnessing increased demand for soft drinks, especially sugary drinks, and is a significant consumer of glass bottles. Due to the growing obesity concerns among the population, the government imposed an increased tax on beverages due to high soft drink consumption, which resulted in an over 67% increase in soft drink prices. It is expected to drive significant demand for glass bottles and containers in the country.
  • Further, the country holds a lower share of glass bottles than other countries in the region due to the alcohol ban. As with drugs, there is a ban on the manufacture, sale, and alcohol consumption in Saudi Arabia. Drinking alcohol is punishable by public flogging, fines, or lengthy imprisonment, accompanied by deportation in some instances. It is one of the significant factors limiting the country's glass bottle growth.
  • In addition, in the previous year, SOURCE Global, a Scottsdale, AZ, tech and renewable water company, introduced renewable bottled water made entirely from sunlight and air. The bottle's graphics are applied using screen printing. The back of the bottle highlights the product's unique attributes. The glass-bottled water will eventually be available to guests at The Red Sea Development Project (TRSDP), a regenerative luxury tourism destination along Saudi Arabia's west coast that is underway.
  • Glass packaging is vital in the food, beverage, and pharmaceutical industries. With the COVID-19 outbreak, the pharmaceutical industry saw rapid growth with the increased demand for vaccinations and medication. It is expected to fuel the development of the country's glass bottles and containers market over the forecast period.

Pharmaceutical Sector Expected to Witness Significant Growth

  • The pharmaceutical companies in the country are actively investing in their manufacturing expansion to meet the increasing demand and new Saudi law that requires a proportion of manufacturing in the country. The pharmaceutical industry is expected to contribute majorly to glass packaging solutions in Saudi Arabia. Saudi Arabia is the largest economy in the Middle East region by GDP and population. Saudi Arabia includes the largest pharmaceuticals market in the Gulf Cooperation Council (GCC) region.
  • In January last year, Biocon signed an agreement to commercialize some prescription drugs in the Middle East with Tabuk Pharmaceutical, a Saudi Arabian pharmaceutical company. Tabuk Pharmaceutical Manufacturing Company is based in the Middle East. Under the terms of the agreement, Tabuk Pharmaceuticals holds the marketing authorization for selected Biocon specialty products and is responsible for registration, import, and promotion in Saudi Arabia and other Middle Eastern countries. It aligns leads to the glass packaging growth in the pharmaceutical industry.
  • Moreover, according to the chairman of the National Committee for Pharmaceutical Industries, Saudi Arabia is encouraging the manufacturing of pharmaceutical products locally, in line with the Vision 2030 initiative. It is expected to drive vials growth in the country.
  • In June last year, as part of Saudi Crown Prince Mohammed Bin Salman's visit to Egypt, it was revealed by both Egypt and Saudi Arabia that 14 cooperation deals totaling USD 7.7 billion had been signed. The agreements covered a variety of industries, and one of them involved pharmaceutical city development by the Egyptian business Pharco in Saudi Arabia.
  • The glass packaging for applications such as ampoules and vials over plastic bottles is expected to increase in Saudi Arabia due to the several regulations passed by the government over plastic.

Saudi Arabia Glass Packaging Market Competitor Analysis

The Saudi Arabia Glass Packaging Market is moderately competitive due to multiple market players. Players in the market, such as Sonoco Products Company, Saudi Arabian Glass Company Ltd., Ardagh Packaging Group PLC, Frigo Glass, and Obeikan Glass Company, are adopting product innovation, partnerships, mergers, and acquisitions to increase their market share and further recyclability driving the market.
  • In June 2022, Bandar Alkhorayef, the Saudi Minister of Industry and Mineral Resources and Chairman of the Manufacturing Vaccines and Critical Medicines Committee, announced the opening of many investment opportunities in the USD 3.4 billion vaccines and vital medicines sector. The possibilities will help the Kingdom reach its objectives for pharmaceutical security and health security, and they will establish Saudi Arabia as a significant hub for this promising industry in packaging as well.
  • In January 2022, West Pharmaceutical Services Inc., a prominent company for injectable medication delivery, announced the exclusive supply and technology deal with Corning Incorporated. The new collaboration includes a multimillion-dollar investment to expand Corning's Valor Glass technology to advance patient safety and increase access to life-saving treatments. The deal wpuld allow the pharmaceutical industry to develop advanced injectable drug packaging and delivery systems.

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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 Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitutes
4.2.5 Intensity of Competitive Rivalry
4.3 Assessment of the Impact of COVID-19 on the Market
5.1 Market Drivers
5.1.1 Higher Disposable Income and Integration in Premium Packaging
5.1.2 Commodity Value of Glass Increased with Recyclability
5.2 Market Challenges
5.2.1 High Carbon Footprint due to Glass Manufacturing
5.2.2 Operation and Logistical Concerns
6.1 By Type
6.1.1 Bottles/Containers
6.1.2 Vials
6.1.3 Ampoules
6.1.4 Jars
6.2 By End-user Vertical
6.2.1 Pharmaceuticals
6.2.2 Personal Care
6.2.3 Household Care
6.2.4 Agricultural
6.2.5 Other End-user Vertical
7.1 Company Profiles
7.1.1 Ardagh Packaging Group PLC
7.1.2 Saudi Arabian Glass Company Ltd.
7.1.3 Sonoco Products Company
7.1.4 Schott AG
7.1.5 Zoujaj glass
7.1.6 Obeikan Glass Company
7.1.7 Mirodec
7.1.8 Arabian United Float Glass Company
7.1.9 Frigo Glass

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Ardagh Packaging Group PLC
  • Saudi Arabian Glass Company Ltd.
  • Sonoco Products Company
  • Schott AG
  • Zoujaj glass
  • Obeikan Glass Company
  • Mirodec
  • Arabian United Float Glass Company
  • Frigo Glass