May 13,2021 | Plastic
The new plastic regulation is expected to affect a wide range of products, such as plastic cases, plastic containers, and other plastic packaging products.According to the new rules and regulations implemented by the Saudi organization (SASO), plastic products must now be made of approved Oxo-biodegradable materials. This is further expected to boost the investment for innovation and result in the introduction of new rigid packaging solutions in the market, over the next 2 years, to adhere to the unique regulatory needs and the needs of the end-user clients.Moreover, the sustainable nature of the Oxo-degradable plastics incorporated in the rigid plastic packaging solutions will enhance the market penetration of several players by further aligning with the consumer paradigm shift toward eco-friendly packaging solutions.
Additionally, the government's attempt to diversify its economic dependence on the oil and gas industry led to its support for real estate developments and resulted in the increased opening of the retail markets. This is expected to provide new opportunities for plastic packaging and increased demands from different sectors.The Saudi Arabia Rigid Plastic Packaging market was valued at US$ 5.82 billion in 2020, and it is projected to reach US$ 7.92 billion by 2026, registering a CAGR of 5.2% during the period of 2021-2026. In FY 2019, the Saudi Arabian government introduced a 17% increase, an estimated US$ 45.86 billion, in the funds allocated for healthcare and social development. Out of these allocated government funds, approximately US$ 12.72 billion was earmarked for spending on a variety of healthcare projects directly linked to Saudi Arabia's Vision 2030. The studied market is witnessing increased consumer demand, driven by the increasing consumption of plastic bottles and jars. The industries where plastic bottles and jars are highly used in the country include - food and beverage, cosmetics and personal care, and healthcare industries. Saudi Arabia is now witnessing the most considerable growth in the food and beverage industry, compared to other industries. According to the Saudi Arabia Ministry of Commerce and Industry, the beverage and soft drink industries are now among the most mature sectors in the country, constituting a vast majority of the food and beverage sectors' exports. However, several sustainable and recyclable technologies concerning plastic packaging are being developed in the region, which is further anticipated to eliminate the current market restraints that impede the growth rate of several players functioning in the market.
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