KSA Plastic Foam Market Outlook to 2028

KSA Plastic Foam Market Overview

The KSA Plastic Foam market has experienced notable growth, this is reflected by Global Plastic Foam reaching a valuation of USD 116.6 billion in 2023. The market's growth is bolstered by the increasing demand for insulation materials in residential and commercial buildings.

The KSA Plastic Foam Market is dominated by several key players, including SABIC, Zamil Industrial, Alujain Corporation, and Juffali Chemical Products. These companies have established a strong foothold in the market through extensive R&D, strategic partnerships, and a wide product portfolio.

In June 2023, Berry Global introduced a new spray-through overcap made with 50% recycled content to help customers meet their sustainability goals. This shows that major players in the Saudi Arabian plastic packaging market are developing eco-friendly products using recycled materials.

Riyadh and Jeddah are the dominant cities in the KSA Plastic Foam Market. Riyadh, the capital city, is a major hub for construction and real estate development, driving the demand for insulation materials. Jeddah, being the largest port city, serves as a critical logistics and distribution center for plastic foam products.

KSA Plastic Foam Market Segmentation

KSA Plastic Foam Market is segmented into the following three segments:

By Product Type: The KSA Plastic Foam Market is segmented by product type into polyurethane foam, polystyrene foam, and polyolefin foam. In 2023, polyurethane foam holds a dominant market share due to its extensive use in construction and automotive applications. Its superior insulation properties and versatility make it a preferred choice in these industries.

By End-Use Industry: The market is segmented by end-use industry into construction, packaging, automotive, and others. In 2023, the construction industry dominates the market share due to the high demand for insulation materials in residential and commercial buildings.

By Region: The market is segmented by region into North, South, East, and West. In 2023, the Western region, holds the largest market share due to its strategic location as a logistics and distribution hub. The presence of major ports and industrial areas in this region facilitates the easy availability and distribution of plastic foam products.

KSA Plastic Foam Market Competitive Landscape

Company Name

Establishment Year

Headquarters

SABIC

1976

Riyadh

Zamil Industrial

1998

Dammam

Alujain Corporation

1991

Riyadh

Juffali Chemical Products

1977

Jeddah

Arabian Chemical Company

1985

Jubail

Alujain Corporation: On May 10, 2023, Alujain Corporation partnered with Lummus Technology to utilize its C3 Catofin propane dehydrogenation (PDH) technology for a new propylene plant in Yanbu, Saudi Arabia. The project, with an estimated investment of $2 billion, is expected to produce 600,000 tons of propylene annually and commence operations in the first half of 2026.

SABIC: SABIC, alongside Napco and FONTE, introduced the first bread packaging made from fully recycled post-consumer plastic in Saudi Arabia in 2023. This initiative supports SABIC's commitment to sustainability and the circular economy by reducing plastic waste and enhancing recycling efforts in the region.

KSA Plastic Foam Industry Analysis

KSA Plastic Foam Market Growth Drivers

Increased Construction Activities: The construction sector in Saudi Arabia is experiencing significant growth, driven by the Vision 2030 initiative, which focuses on mega-projects like NEOM, the Red Sea Project, and Qiddiya. In 2024, the government allocated SAR 30 billion for infrastructure projects, greatly increasing the demand for plastic foam insulation materials.

Rising Demand in the Packaging Industry: The e-commerce sector in Saudi Arabia has experienced rapid growth, with online sales reaching $2.67 billion in 2023. This increase in e-commerce activities has led to a higher demand for protective packaging solutions, including plastic foam.

Automotive Industry Expansion: The automotive industry in Saudi Arabia is expanding, with new vehicle registrations exceeding 800,000 units in 2023. This growth is driving the demand for lightweight materials like plastic foam, which are used in vehicle interiors, seating, and insulation.

KSA Plastic Foam Market Challenges

Fluctuating Raw Material Prices: The plastic foam market relies heavily on petrochemical derivatives like polyurethane and polystyrene. In 2024, crude oil prices fluctuated significantly between $60 and $80 per barrel, impacting the cost of raw materials for plastic foam production. This volatility creates uncertain profit margins for manufacturers, making it a critical challenge for the industry to manage these cost fluctuations.

Limited Recycling Infrastructure: Despite the increasing focus on sustainability, the recycling infrastructure for plastic foam in Saudi Arabia is still underdeveloped. This limitation poses a challenge to the market, as manufacturers and consumers alike are pressured to adopt more environmentally friendly practices.

KSA Plastic Foam Market Government Initiatives

Vision 2030 Infrastructure Projects: The Saudi government's Vision 2030 initiative includes a substantial focus on developing infrastructure projects across the Kingdom. In 2024, the government announced investments totaling SAR 30 billion for various infrastructure projects, including smart cities and sustainable construction.

National Industrial Development and Logistics Program (NIDLP): Launched in 2019, the NIDLP aims to transform Saudi Arabia into a leading industrial powerhouse by promoting local manufacturing and reducing reliance on imports. As of 2023, the NIDLP has created over 1.3 million jobs, contributing significantly to the Saudi labor market and reducing reliance on foreign workers.

KSA Plastic Foam Market Future Outlook

The future outlook for the plastic foam market in Saudi Arabia is optimistic, supported by strong growth projections, government initiatives promoting infrastructure development, local manufacturing, and a focus on sustainability. These factors are likely to drive demand for plastic foam materials in the coming years.

KSA Plastic Foam Market Future Trends

Expansion of Smart Cities: Over the next five years, the construction of smart cities in Saudi Arabia, particularly NEOM under Vision 2030, will drive significant demand for advanced plastic foam materials used in high-performance insulation and lightweight construction.

Adoption of Circular Economy Practices: By 2028, the plastic foam market in Saudi Arabia is expected to transition towards circular economy practices, emphasizing recycling and sustainable production. Government initiatives aimed at promoting recycling and minimizing plastic waste will motivate manufacturers to adopt eco-friendly production methods and create recyclable foam products.
Please Note: It will take 5-7 business days to complete the report upon order confirmation