Saudi packaging industry forecast to grow by 25%

Currently valued at $4.4 billion, forecasters are predicting the Saudi packaging industry will grow by more than $1 billion in the next four years.  The growth will largely be driven by a rise in personal income and an increase in the number of working women, both of which are bringing about a change in consumer lifestyle.  With an increase in consumer product marketing by the brand owners, the largest rises are expected to be seen in the food and beverage sectors.  
 
Saudi Arabia accounts for 60 % of the food and beverages consumed in the Gulf region, a figure that seems sure to increase in view of the country’s policy of self-sufficient food production.  At present, agriculture represents just 3% of GDP, but this figure will grow, along with the capacity for food processing and packaging.  The forward situation, however, will be affected if the Saudi government continues to maintain its strict control of international involvement within the country.
 
The good news is that private consumption expenditure (defined as the purchase of goods and services for consumption by domestic private households) shows an annual growth rate of 8%, well ahead of the global average of 6.4%.  Assuming this continues, the consumption of packaging material will increase at a similar rate.