SAUDI ARABIA PAPER & PULP MARKET

Saudi Arabia paper & pulp market is anticipated to witness a steady CAGR of 3.9% fueled by the increasing demand for paper packaging along with rising sustainable practices and the growing need for tissue paper.

Major Market Drivers and Emerging Trends

The Saudi paper industry is a significant part of the manufacturing sector because it produces various paper products like for paper and packaging among others. The country is experiencing rapid growth in the paper product market with paper towel consumption per capita surpassing that in developed places like North America and Western Europe.

The Saudi Arabia paper & pulp market size growth is largely fueled by the growing need for paper packaging solutions. In line with Vision 2030 Saudi Arabia is driving sustainability efforts across all industries including packaging. Saudi Green Initiative seeks to fight global warming by planting ten billion trees and revitalizing forty million hectares of land while promoting paper packaging adoption.

The food and beverage market growth is a major driver behind the Saudi paper packaging industry. Increasing interest in packaged food has driven the need for packaging that aligns with regulations and sustainable practices. SFDA has released guidelines encouraging the sustainable packaging solutions adoption which boost demand for paper based alternatives.

The booming ecommerce sector in Saudi Arabia is also contributing to the growing need for paper packaging. In 2023 ecommerce transactions hit SAR 770.87 billion which drives a growing need for durable and reliable packaging solutions for transportation. Paperboard packaging is gaining traction as a dependable and affordable option. The shift towards environmentally friendly packaging preferences among consumers in ecommerce is accelerating this growth even more.

Growing consciousness about environmental responsibility is further contributing to market growth. Concerns about negative environmental impact has prompted companies to focus on green packaging options. Consumers favor recyclable packaging and staying away from plastic materials. The changing consumer preferences has driven a higher need for functional packaging designs which directly influence brand perception and sales performance across the supply chain.

As paper recycling grows in the country, specialized factories are working to conserve natural resources particularly trees by recycling paper waste. Paper recycling involves several stages beginning with sorting and collected in specific containers then sent to recycling centers. Several factories in the country are focused on paper recycling with notable ones including MEPCO and WASCO.

Market growth is further supported by the growing demand for tissue paper. The increasing consumer consciousness about hygiene is a major factor driving the increasing demand for sanitary paper. Driven by a strong focus on public and personal hygiene the need for sanitary paper like tissues has seen steady growth. The increasing disposable sanitary products usage in daily life both at home and in commercial settings drives sustained product demand. Furthermore the market growth is fueled by factors like urbanization and increasing consumer expenditure along with the increasing demand for convenience. Sanitary paper also sees significant demand from the foodservice and hospitality sectors which prioritize customer cleanliness and hygiene.

Based on category, the packaging paper segment is experiencing significant growth. The rapid ecommerce growth has generated a demand for packaging with paper bags have become an affordable substitute to plastic. With the growing focus on the environment many manufacturers are turning to paper packaging solutions. The segment is estimated to grow considerably in the coming years supported by a stronger focus on sustainable packaging along with innovations. Government support for green initiatives and recycling coupled with the continues ecommerce growth in the country is expected to drive the market forward.

The tissue paper segment is also experiencing growth with the rising population leading to increased need for toilet paper driven by growing hygiene consciousness across all age demographics. The rising consumer disposable incomes is leading them to increase spending on personal care items like napkins and facial tissues because they move away from traditional handkerchiefs and cloth towels that were once common in most households. With population growth and improved living standards the need for these items is projected to keep growing. Technological innovations have also contributed to the creation of more absorbent and softer sanitary products which further boost the segment growth.

Top Market Players

Several major companies in the market include Alfaris Paper Mill, Saudi Paper Group, WARAQ, UCIC, Eastern Pak, among others. Increased collaboration is taking place in the market with companies seeking to reinforce their market presence and improve their operational capacities.

Key Developments

• • In 2024, Saudi Paper Manufacturing Company entered into a non-binding agreement with Toscotec from Italy to purchase a new production capacity that in line with its expansion objectives.

Segments covered in the Report:

The Saudi Arabia Paper & Pulp Market has been segmented on the basis of Category. Based on Category, the market is segmented into Packaging Paper, Newsprint, Tissue Paper, Specialty Paper and Others.

Market Segmentation

Saudi Arabia Paper & Pulp Market by Category

• • Packaging Paper
  • Newsprint
  • Tissue Paper
  • Specialty Paper
  • Others

Saudi Arabia Paper & Pulp Market Leading players

• • Alfaris Paper Mill
  • Saudi Paper Group
  • WARAQ
  • UCIC
  • Eastern Pak