Report Overview

Saudi Arabia Biodegradable Plastics Market- Industry Trends & Forecast Report 2027

The Saudi Arabia biodegradable plastics market is estimated to grow at a CAGR of 16.2% during the forecast period (2021-2027). The market is growing due to its environmentally friendly nature, rising consumer adoption of biodegradable plastics, strong demand for biodegradable plastic in food packaging applications, and favorable government policies for bio-plastic. Furthermore, market players can expect attractive prospects as CSR activities increase and their reliance on petroleum resources decreases.

Saudi Arabia Biodegradable Plastics Market Overview

Biodegradable plastics are favorable to the environment and are engineered to break down when exposed to microbes. They are often manufactured from natural byproducts and are subjected to tight humidity and temperature controls in an industrial setting. Bio-plastic refers to most compostable and biodegradable polymers derived from plants (such as sugarcane or bamboo) rather than fossil fuels. In order to ensure that these bioplastics degrade efficiently and fairly, their compostability must be validated according to international standards before they are used in industrial composting facilities.

Saudi Arabia Biodegradable Plastics Market Trend

Growth Drivers

The Ongoing Focus on Oxo-Biodegradable Plastic Packaging is Likely to Push the Market Forward

The use of oxy-biodegradable films for packaging waste has become an important solution for many companies. As a result, the demand for oxo-biodegradable plastic packaging is likely to expand the market. This is especially prominent in Middle East countries like Saudi Arabia. In addition, the term "oxo-biodegradable" has become a popular marketing concept. Manufacturers promote their oxo-biodegradable plastic products to present themselves as environmentally friendly and improve their brand image. Furthermore, makers of oxo-biodegradable plastic packaging emphasize incorporating other attributes to their products, such as outstanding machinability, high printability and ink adherence, and superior heat seal strength and moisture barrier, thereby propelling the market’s growth.

Restraints

High Cost of Biodegradable Plastics Compared to Conventional Plastics

Although biodegradability is a clear advantage, most grades require a precise industrial composting procedure to decompose. Only a few economies have a dense infrastructure to process these items. In the absence of proper infrastructure, they could end up in landfills causing environmental damage. Consequently, a different method is required to dispose of such polymers, increasing the cost of the products. For example, PHAs have high manufacturing costs, low yields, and limited availability, and are used in binders, synthetic papers, medical devices, electronic parts, food packaging, and agriculture. On the other hand, PLAs are more expensive than petroleum-based PE and PP, while their production cost is lower than PHAs. The bio-based industry is still in its infancy. Despite being more than 50 years old, they have not reached the same level of market penetration as their petrochemical counterparts, which have been rapidly developing for several decades.

Impact of COVID-19

Saudi Arabia is one of the most significant markets in the Middle East for the packaging sector. Besides the oil and gas sector, the country has a large consumer base that contributes to the dramatic increase in demand for biodegradable plastic packaging every year. In light of the rapid spread of the Coronavirus pandemic, no new plastic bags were used, including biodegradable bags. Moreover, in an attempt to control the spread, customers began bringing their old fabric bags and small stores also stopped issuing plastic bags to consumers.

Before the COVID-19 breakdown, a large number of multinationals adopted oxo-biodegradable plastics under government regulations. However, after the pandemic, the government made several mandates regarding disposable and single-use plastics to prevent the further spread of the virus. For instance, the SASO Quality Mark of Wells Plastics Limited has been successfully renewed for another three years. SASO (Saudi Standards, Metrology, and Quality Organization) laws require that all plastic products sold in Saudi Arabia be manufactured with approved oxo-biodegradable additives, regardless of whether they are made in Saudi Arabia or exported there.

Saudi Arabia Biodegradable Plastics Market: By End-Use Industry

Based on the end-use industry, Saudi Arabia biodegradable plastics market is segmented as packaging, consumer goods, textile, agriculture & horticulture, and others. Among these, the packaging segment accounted for the largest market share during the forecast period. The growth of segment can be attributed to the extensive use of bioplastic in cosmetics packaging, such as creams, compact powders, and lipsticks. The materials used in this segment include PLA, bio-based PE, and bio-based PET. This high bio-based content, combined with the ability to blend it with recycled materials from traditional PE and PET, can greatly reduce resource consumption and CO2 emissions. These factors are predicted to contribute to the segment's future growth.

Source: BlueWeave Consulting

Competitive Landscape

The Saudi Arabia biodegradable plastics market is highly fragmented due to the presence of limited domestic and international players. Additionally, the emergence of new players has resulted in healthier competition among long-established service providers in the industry. Some key players in the Saudi Arabia biodegradable plastics market are Symphony Environmental Ltd., Napco National, EnerPlastics, EPI Environmental Technologies Inc., Licton Industrial Corp., and other prominent players.

Recent Development

• In April 2021, Saudi Basic Industries Corporation, one of the world's largest petrochemical companies, announced that it had signed a memorandum of understanding with Saudi Investment Recycling Company (SIRC) to assist SIRC in the establishment of its first chemical recycling plant to convert mixed plastic waste into recycled feedstock. 

• In February 2020, Al Ain Plant Bottle, the region's first plant-based water bottle, was launched by AgthiaGroup PJSC, one of the region's major food and beverage firms.

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Scope of the Report:

• By Type
  • • • Polylactic Acid (PLA)
      • Starch Blends
      • Polyhydroxyalkanoates (PHA)
        • Polycaprolactone (PCL)
        • Polybutylene Adipate Terephthalate (PBAT)
        • Polybutylene Succinate (PBS)
      • Others

• By End-Use Industry
  • • • Packaging
      • Consumer Goods
      • Textile
      • Agriculture & Horticulture
      • Others

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Research Methodology
   1. Qualitative Research
      1. Primary & Secondary Research
   2. Quantitative Research
   3. Market Breakdown & Data Triangulation
      1. Primary & Secondary Research Application
      2. Secondary Research
      3. Primary Research
   4. Breakdown of Primary Research Respondents, By Region
   5. Assumption & Limitation
3. Executive Summary
4. Saudi Arabia Biodegradable Plastics Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
      2. Restraints
      3. Opportunities
      4. Challenges
   3. Recent Development
   4. Technological Advancements
   5. Regulatory Framework
   6. Porter’s Five Forces Analysis
      1. Bargaining Application of Suppliers
      2. Bargaining Application of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
5. Saudi Arabia Biodegradable Plastics Market Overview
   1. Market Size & Forecast by Value, 2017-2027
      1. By Value (USD Billion)        
   2. Market Share & Forecast
      1. By Type
         1. Polylactic Acid (PLA)
         2. Starch Blends
         3. Polyhydroxyalkanoates (PHA)
            1. Polycaprolactone (PCL)
            2. Polybutylene Adipate Terephthalate (PBAT)
            3. Polybutylene Succinate (PBS)
         4. Others
      2. By End-Use Industry
         1. Packaging
         2. Consumer Goods
         3. Textile
         4. Agriculture & Horticulture
         5. Others
6. Competitive Landscape
   1. Company Market Share Analysis, 2020
   2. Competitive Benchmarking, By Product Offerings
   3. List of Key Players and their Offerings
7. Impact of COVID-19 across Industry
8. Company Profile (Company Overview, Financial Matrix, Key Product landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook) *
   1. Symphony Environmental Ltd
   2. Napco National
   3. EnerPlastics
   4. EPI Environmental Technologies Inc.
   5. Licton Industrial Corp.
   6. Other Prominent Players
9. Key Strategic Recommendations

*Financial details of unlisted companies will be available as per data availability in final deliverable

**The segmentation and the companies are subjected to modifications based on in-depth secondary for the final deliverable.

List of Figures

Fig 1: Saudi Arabia Biodegradable Plastics Segmentation

Fig 2: Saudi Arabia Biodegradable Plastics Market Value Chain Analysis

Fig 3: Company Market Share Analysis, 2020

Fig 4: Saudi Arabia Biodegradable Plastics Market Size, By Value (USD Billion), 2017-2027

Fig 5: Saudi Arabia Biodegradable Plastics Market Share, By Type, By Value, 2017-2027

Fig 6: Saudi Arabia Biodegradable Plastics Market Share, By End-Use Industry, By Value, 2017-2027

List of Tables

Table 1: Saudi Arabia Biodegradable Plastics Size, By Value, 2017-2027

Table 2: Saudi Arabia Biodegradable Plastics Market Size, By Type, By Value, 2017-2027

Table 3: Saudi Arabia Biodegradable Plastics Market Size, By End-Use Industry, By Value, 2017-2027

Table 4: Symphony Environmental Ltd Business Overview

Table 5: Symphony Environmental Ltd Financial Analysis

Table 6: Napco National Business Overview

Table 7: Napco National Financial Analysis

Table 8: EnerPlastics Business Overview

Table 9: EnerPlastics Financial Analysis

Table 10: EPI Environmental Technologies Inc. Business Overview

Table 11: EPI Environmental Technologies Inc. Financial Analysis

Table 12: Licton Industrial Corp. Business Overview

Table 13: Licton Industrial Corp. Financial Analysis