Saudi Arabia Containerboard Market Overview, 2029

The containerboard market in Saudi Arabia has seen significant development, driven by the country's robust industrial and manufacturing sectors. Containerboard, a type of paperboard specifically designed for packaging applications such as corrugated boxes, plays a crucial role in the logistics and shipping industries. Saudi Arabia's involvement in this market stems from its strategic initiatives to bolster domestic manufacturing capabilities and reduce dependency on imports. The country has actively invested in expanding its production capacity for containerboard, aiming to meet the growing demand fueled by local consumption and export opportunities. Saudi Arabia's industrial infrastructure, supported by ample raw material availability and a favorable regulatory environment, has facilitated the establishment of several manufacturing facilities dedicated to containerboard production. Moreover, the government's focus on economic diversification through Vision 2030 has further propelled investments in industries that contribute to the national economy, including packaging materials like containerboard. This initiative has attracted both domestic and international investors seeking to capitalize on Saudi Arabia's burgeoning industrial base and strategic geographic position. Saudi Arabia's participation in the containerboard market has been characterized by efforts to enhance production efficiency and product quality, aligning with global standards. The country's manufacturers have leveraged technological advancements to optimize processes and ensure competitiveness in both domestic and international markets. Strict enforcement of laws banning single-use plastics in the Saudi Arabia has increased the need for environmentally friendly packaging solutions, especially paper. The demand for convenience foods is on the rise due to the busy lifestyle of people. As corrugated box packaging keeps moisture away from the products and withstands long shipping times, companies are increasingly adopting it to offer customers better outcomes, especially as a means of secondary or tertiary packaging. PIX indices covering the two main recycled fiber-based containerboard grades, produced in and delivered to the Gulf Cooperation Council (GCC), were launched in June 2023. According to the research report, "Saudi Arabia Containerboard Market Outlook, 2029," published by Bonafide Research, the Saudi Arabia containerboard market is anticipated to add to more than USD 100 Million by 2024–29. Growth in the Saudi Arabian containerboard market will be high, driven by some major factors resulting from the country's resources, economic structure, and progress in industries. First and foremost, growing industrial and consumer demand for efficient packaging solutions is one of the main drivers. This demand stems from food and beverage, electronics, and e-commerce industries. As the country's industrial base grows, so will consumer spending. Higher spending will then, in turn, directly increase demand for packaging materials like containerboard. The abundant natural resources, coupled with huge supplies of wood pulp and recycled paper, also contribute to the containerboard industry in Saudi Arabia. These raw materials can be processed into high-quality containerboard, thereby reducing dependence on imported materials. Besides, modernization in advanced technology and sustainable practices taken by Saudi Arabia adds efficiency to containerboard production. At the local level, producers are bettering product quality and lessening the ecological footprint by taking on board the state-of-the-art manufacturing process and embracing innovations such as integrating recycled fiber into their product mix. This is a country that has diversification away from oil dependency in very strong ways, especially in the development and support given to various non-oil industries, including packaging. Of course, such diversification will mean that investment in related infrastructure and technology also benefits the containerboard sector. Moreover, the area is expanding in its logistics and transport networks, making distribution easier and wider. In this regard, the demand for food delivery applications is increasing in Saudi Arabia. Its food delivery industry has shown dramatic development in recent years.

The largest segment in the containerboard market in Saudi Arabia is Recycled Paper, driven by increasing awareness of green sustainability and government initiatives on recycling. This has been aided by the fact that the country is concentrating on wastage reduction and natural resource conservation; as such, recycled paper becomes one of the preferences of manufacturers looking for environmentally friendly packaging solutions. Moreover, the increasing demand from industries like food and beverage for sustainable packaging aligns with the advantages of recycled material usage, further entrenching the market-leading position of Recycled Paper. Growth in the Virgin Fibre segment comes on the back of rising consumer demand for better quality packaging to provide strength and durability. Diversifying the economy and increasing consumer spending will raise demand for industries such as cosmetics, pharmaceuticals, and electronics. All of these require strong packaging not only to make a product more attractive but also to withstand transit and other hazards. Growing demand for premium products, which often require virgin fiber for superior packaging quality, is also driving this segment's growth. The Food & Beverage segment dominates the containerboard market in Saudi Arabia, particularly for fruits and vegetables, owing to a rising population and increasing demand for fresh produce in the country. This segment grows through increased consumption patterns and a movement towards more sustainable ways of packaging that makes recycled containerboard an excellent solution for the retailer and their suppliers. The processed food segment is also on its way up, driven by changing lifestyles and increased on-the-go meals that demand efficient packaging to allow for the safeguarding of product quality. Ready-to-eat food and poultry products are also growing as consumers reach out for convenience and variety, thereby pushing demand in these areas for containerboard. The "Others" category includes other applications that cannot fit into any defined segment but make for a significant market share to the extent of portraying the versatility of containerboard in packaging various products. Of the segments identified, the one that has been witnessing growth in demand is that for Cosmetics & Personal Care, largely due to a heightened level of awareness among consumers towards personal grooming and wellness in Saudi Arabia. It is also driven by the growth in e-commerce and online shopping, where packaging becomes an important aspect in the protection of products in transit. Pharmaceuticals are a stable sector since healthcare products are essentially required, and the packaging demands are governed by provisions of regulatory and safety features of the product. In the textile industry, both woven and non-woven applications grow as the fashion and apparel sector grows; hence, there is a strong demand for sustainable packaging solutions. The Electrical & Electronics segment is also growing in demand, impelled by the need for superior quality packaging for its sensitive products such as smartphones, televisions, and computers. Considered in this report • Historic year: 2018 • Base year: 2023 • Estimated year: 2024 • Forecast year: 2029 Aspects covered in this report • Containerboard market Outlook with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By Material • Recycled Paper • Virgin Fibre

By End-use • Food & Beverage (Fruits & Vegetables, Processed Food, Ready-to-eat-Food, Poultry Products and Others) • Cosmetics & Personal Care • Pharmaceuticals • Textile Industry (Woven and Non-Woven) • Electrical & Electronics (Smartphones, Television, Computers and Others) • Others The approach of the report: This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Containerboard industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.