OECD Growth Rate Projections Puts Saudi Arabia at Fourth Highest in G20 Growing Economies in 2024, and Third Highest for 2025. The Strong Economy is Driving the Growth of the Print & Pack Sector
Riyadh is the Center of a $1.108 Trillion Economy, the Largest in the MENA Region. Multiple Print and Pack Segments are Offering Widespread Opportunities
The Kingdom’s economic growth and young consumer demographic has developed a growing appreciation of quality and choice in terms of lifestyle and consumer preferences. This has resulted in the sophistication of consumers who are demanding differentiated, innovative and safe packed goods. These trends are offering wide spread opportunities.
$5.52 Billion. Accelerating Machinery Purchase Market Growth
The market for the machinery that produces printing and packaging solutions is growing rapidly. With a buoyant and expanding non-oil economy with a growth rate of 5.9% in 2023, coupled with industry revenue for the manufacture of paper, and paper based products, are expected to reach $5.52 Billion in2024, the opportunities for providers of print and pack technologies is growing rapidly.
$5.87 Billion. Expanding Paper and Paperboard Machinery Demand
The Saudi Arabia paper and paperboard packaging market size is expected to grow from $4.77 Billion in 2023 to $5.87 Billion by 2028. The forecast for corrugated, folding cartons, flexible packaging as well as labels and tags are contributing to a CAGR of 4.23% during a forecast period from 2023-2028.OECD growth rates projections puts Saudi Arabia at fourth highest in G20 growing economies in 2024, and third highest for 2025. The strong economy is driving the growth of the print pack sector.
No. 1 Saudi Holds Largest Share of MENA Packaging Automation Market
Demand for the latest technologies in the automated packaging market is growing day-by-day in Saudi Arabia. With government policy to retrofit packaging facilities and the development of new smart factories, the sector is wide open for new market entrants who supply automated packaging solutions. Saudi is leading the way in high-tech adoption in the packaging industry through incentives and the expansion of the fastest growing economy in the MENA region. Opportunities for manufacturers of automation equipment and technologies will accelerate as the adoption of smart packaging in industry expands.
$258 Million Saudi Imports of Print and Pack Technology
Saudi Arabia is a major importer of printing technology according to the VDMA, the largest network association for the machinery and equipment manufacturing industry in Europe. In 2022, the Kingdom imported $258 Million in new print and pack machinery technologies to retrofit and create new smart print and pack facilities. The most important supplier countries are Austria, Belgium, China, France, Germany, Italy, Netherlands, Spain, Switzerland, Turkey, the United Kingdom, and United States of America. Opportunities for exporters of print and pack technology and machinery are accelerating in line with the growth of the Saudi economy, projected to be amongst the highest in the G20 in 2024.
4000 Smart Factories Adopt Downstream Print & Pack Technologies
The Ministry of Industry and Mineral Resources’ program to digitize, automate and retrofit 4000factories is well underway. Factories that are being digitally transformed are using the latest technologies to enhance manufacturing efficiency and productivity. Highly integrated and connected production lines rely on the downstream print and pack functions to the final product, ready for shipping. The Saudi Industrial Development Fund are funding the 4.0 smart factories. There is massive scope for machinery and material supply providers to participate in retrofit opportunities.
IR 4.0 Smart Print & Pack Trends are Adopting Connected Technologies
The print and pack industries are moving to a widely connected process-driven productive efficiency approach. One innovative technology for print and pack operations is robotics. Robots can perform minor print operations such as retrieving and loading a new paper roll into the press, as well as labelling and palleting. AI can also be an advantage by aiding in efficient print layouts that decreases the waste of your print material. Buyers at Saudi Print & Pack will be looking for new smart technologies, particularly manufacturers that want to integrate smart print and pack end-operations at the end of their smart manufacturing production cycles.
NFC and QR code applications allowing users to directly interact with products and launch a digital engaging experience on their phones (no app required)…
The two key types of smart packaging featured will be “Active Packaging” such as those that improve products, for example by reducing moisture that reaches food, and the rapidly evolving “Intelligent Packaging” such as connected packaging that integrates Near Field Communications (NFC) or the now more familiar Quick Response Code (QR codes.)
$6.83 Billion Rigid Packaging Market Growth in Biodegradables
The Saudi rigid plastic packaging market size is estimated at $6.83 billion in 2023. It is expected to reach $8.65 billion by 2028, growing at a CAGR of 4.84% during the forecast period (2023-2028).The market demands focus on format types such as bottles and jars, trays and containers, caps and closures, and cups and lids, among other products. The increased usage of oxo-degradable plastics is leading to a trend of increased demand for intelligent bio-degradable packaging materials. Suppliers of bio-degradables, related machinery and materials can take advantage with the high growth demand.