Saudi Arabia extruded plastic market is projected to grow at a CAGR of 4.80% during the forecast period to reach US$0.432 billion by 2027, from US$0.311 billion in 2020.
Plastic extrusion is a popular manufacturing operation in modern industry, and it can be defined as a technique for converting raw plastic materials into industrial goods. The raw material is extruded and yanked through the mould before solidified and formed into a long item with a continuous cross-section. Extrusion should be the ongoing generation of indefinitely long products or moderately repeated creation of numerous shorter pieces such as pipes, tubes, etc. If the item is not continuously long, other machines must generate it, such as pipe fittings, which require injection molding machines.
Saudi Arabia Extruded Plastic Market Growth Driver
Rising income thresholds due to higher employment growth are propping up the country's growing middle class. This ever-increasing trend prompts the middle class to enhance their budgets for consumer items, including personal care products. The growth of cosmetic and personal care, especially skin, make-up, and hair-care product lines, is surging rapidly, with increasing packaging. Furthermore, with the country's growing consumption of bottled water, several industry players are capitalizing on this potential market by proposing plastic bottle products and solutions of varying possibilities. Saudi Arabia is the world's biggest country without running groundwater and has one of the greatest levels of water consumption. Total water usage has surpassed 8 million cubic meters per day (m3/d) and is expected to reach 12.3 million m3/d by 2040, with daily water consumption at 263 liters per capita in 2019, as per USSAUDI. The increased level of water consumption will give rise to the consumption of bottled water, which will enhance the packaging industry giving the push to the demand for extruded plastic packaging industry over the forecasted period.
Restraints
Environmental issues about reusing and disposal systems and raw material cost unpredictability are limiting the market's ability to expand. Plastics contribute significantly to plastic contamination when they are not handled correctly at the bottom of the value chain throughout their extended lifecycle, notably in waterbodies.
COVID-19 Impact on Saudi Arabia's Extruded Plastic Market
The COVID-19 outbreak has harmed Saudi Arabia's extruded plastics market. Production and manufacturing processes continued to suffer during the pandemic due to the enforced shutdown, resulting in a dead stop in foreign trade and decreased plastic usage. There was also a downturn in the economy for equipment, transit, automotive, and gizmos, which led to a drop in plastics production and, as an outcome, extruded plastics throughput.
Extruded Plastic in Saudi Arabia
According to new Saudi organization (SASO) rules, plastic products must now be made of approved oxo-biodegradable material. This is anticipated to drive investments in technology, with the launch of innovative packaging solutions in the market over the forecasted period to meet the end-user industry's distinctive regulatory requirements and needs. The growing demand for versatile plastic packaging strategies across the end-user sector will propel the market forward. The Saudi government allocated funds for healthcare projects totalling approximately USD 12.53 billion in the fiscal year 2020. The advancements in the pharmaceutical, healthcare and cosmetic products marketplaces are anticipated to be the driving factors of demand for the extruded plastic market. The increased population, which is 35013414, and increased GDP, which is 9.6%, have also contributed to the country's rising power for packed bottled water and packed food, which is anticipated to contribute to the growth of the extruded plastic market in the country.
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