Market Overview

The Saudi Arabia paper packaging market was valued at USD 3.19 Billion in 2024 and is projected to reach USD 4.71 Billion by 2033, reflecting robust growth driven by sustainability trends and the expanding e-commerce sector. The market is forecasted to grow at a CAGR of 4.18% from 2025-2033. Key growth factors include rising demand for eco-friendly packaging, government initiatives such as Saudi Vision 2030, and increased adoption of premium and customizable packaging solutions. 

How AI is Reshaping the Future of Saudi Arabia Paper Packaging Market

  • AI-driven supply chain optimization is enabling companies to reduce waste and increase production efficiency, supporting sustainable packaging goals aligned with Saudi Vision 2030.
  • Machine learning algorithms assist in analyzing consumer preferences, facilitating the design of premium, innovative, and customizable paper packaging solutions that enhance brand identity and consumer appeal.
  • AI-powered digital printing technologies allow for superior design, faster turnaround times, and cost-effective small-batch production, meeting the demand for customized packaging.
  • Automation and AI in manufacturing processes boost production capacity, as exemplified by companies like Middle East Paper Company (MEPCO) investing in advanced machinery to increase output.
  • AI analytics support market players in monitoring regulations and certifications such as FSC and PEFC, ensuring compliance with growing environmental standards.
  • Integration of AI-enabled eco-friendly material sourcing helps companies meet rising consumer demand for sustainable and recyclable paper products in sectors like food & beverages and e-commerce.

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Market Growth Factors

The growing emphasis on sustainability and environmental responsibility is a primary driver for the Saudi Arabia paper packaging market. The market benefits from increasing consumer awareness of eco-friendly alternatives coupled with governmental restrictions on plastic usage, which promote the adoption of biodegradable packaging. International certifications such as the Forest Stewardship Council (FSC) and Programme for the Endorsement of Forest Certification (PEFC) encourage manufacturers to use sustainable paper packaging. Concurrently, initiatives by the Saudi government, including Saudi Vision 2030, create a supportive environment for sustainable growth by advancing regulations that reduce environmental impact. This heightened focus on green compliance and sustainability significantly propels market expansion.

The expansion of the e-commerce and online retail sectors is another major factor fueling market growth. Saudi Arabia’s retail sector contributes 23% to the non-oil GDP, with rapid growth in digital retail platforms requiring efficient, lightweight, and recyclable packaging solutions. Paper-based packaging products like cartons, mailers, and bottles are increasingly favored due to their environmental benefits and cost-effectiveness in delivery and shipment. The rising consciousness of clients about their ecological footprint motivates companies to adopt recyclable paper packaging as a key component of the e-business industry’s service offering. This shift further strengthens the demand for innovative, durable, and tailored packaging specific to online sales and delivery channels.

Technological advancements within the paper packaging industry are also supporting market demand. Innovations such as digital printing, enhanced barrier coatings, and the development of lightweight materials contribute to flexible and high-performance packaging solutions. These technologies meet the rigorous requirements of sectors like food & beverages, pharmaceuticals, and consumer goods, offering improved product preservation and branding. Events like the Paper Middle East Saudi Arabia 2024 fair demonstrate industry alignment with sustainability targets under Saudi Vision 2030. This technological progression enables companies to provide attractive, cost-efficient paper packaging that supports both environmental goals and market competitiveness, thereby fostering the sector’s growth.

Our comprehensive Saudi Arabia paper packaging market outlook reflects both short-term tactical and long-term strategic planning. This analysis is essential for stakeholders aiming to navigate the complexities of the market and capitalize on emerging opportunities.

Market Segmentation

Analysis by Product Type:

  • Corrugated Boxes
  • Folding Boxes and Cases
  • Liquid Paperboard Cartons
  • Paper Bags and Sacks
  • Others

Analysis by Grade:

  • Solid Bleached
  • Coated Recycled
  • Uncoated Recycled
  • Others

Analysis by Packaging Level:

  • Primary Packaging
  • Secondary Packaging
  • Tertiary Packaging

Analysis by End Use Industry:

  • Food
  • Beverage
  • Personal Care and Home Care
  • Healthcare
  • Others

Analysis by Region:

  • Northern and Central Region
  • Western Region
  • Eastern Region
  • Southern Region

Key Players

  • Juthor Paper
  • Middle East Paper Company (MEPCO)
  • ANDRITZ
  • Tetra Pak

Recent Development & News

  • April 2025: The Middle East Paper manufacturing and Production Company (MEPCO) announced a SAR 1.78 billion investment to inaugurate a fifth production line, aiming to increase annual cardboard paper production capacity by 450,000 tons. This initiative aligns with Saudi Vision 2030 goals to enhance competitiveness and promote environmentally sustainable recyclable products.
  • October 2025: Tetra Pak launched its ‘Made, consumed and recycled in Saudi Arabia’ campaign, demonstrating its commitment to support the Kingdom’s economic diversification under Vision 2030, highlighting advances in local food packaging and manufacturing sectors.
  • January 2025: The Public Investment Fund (PIF) secured a 23.08% stake in Middle East Paper Company (MEPCO) through a capital increase, thereby enhancing the company’s manufacturing and recycling capabilities, targeting expansion into packaging and building materials with a focus on fostering local supply chains and sustainable growth.

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Last Update: November 13, 2025