Nonmetallic in Packaging Value Proposition Session · KSA & GCC Demand of Rigid Barrier Packaging...

Nonmetallic in Packaging

Value Proposition Session February 2020

© Saudi Arabian Oil Company, 2020

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Saudi Aramco: Public

Topic Presenter Department

Opening the Session

Salem Alghamdi ID&SSDRigid barrier plastics packaging

Plastic Pails

Heavy Duty Plastic Storage Containers

Fatima AlAmri ID&SSDPlastic crates for retail and warehousing

Transport crates/boxes with integral handle

Plastic corrugated boxes

Pharma and Cosmetic Plastic Containers and Bottles

Faris Alkordy CSDProtective flexible packaging for fresh food

Stand-up Pouches

Returnable Plastic Packaging Systems

Expandable Polystyrene

Mohammed Bashar CSDRefillable containers - rigid plastics

Plastic pump sprays to replace aerosol cans

Shrink Bundling Film

Reusable coffee cups -rigid plastics

Abdullah Alghamdi ID&SSDPlastic stretch wrap roll

Plastic drums and barrels

Rigid plastic beverage bottles and jars

Sami Alkhaldi ID&SSDPlastic Industrial Strapping

Bubble Wrap - Plastic bubble wraps

Closing the Session Salem Alghamdi ID&SSD

Session Outline



• Drives domestic value creation byworking with suppliers for mutualbenefits

• Envisions to improve investment, andmaximize long term economic growthand diversification

• Focuses on delivering quality jobs,advancing innovation and enhancingglobal competitiveness

IKTVA is designed to reward Saudi Aramco’s suppliers for the use and development of local labor and sub-suppliers



Anticipated Market Size

The

Opportunity

The Business

Case

Executive Summary

Raw Material Intermediates Finished

Products

Value Chain Mapping

Each will Provide:

For nonmetallic in industrial, logistics, food & beverages and personal

care sectors


Rigid Barrier

Packaging Value

PropositionFebruary 2020



• Potential exists to

establish multiple

manufacturing facilities

in the kingdom for rigid

barrier packaging to keep

up with the growing

demand.

The Opportunity

• Global demand is expected

to grow at 2.5% annually for

the next 10 years to reach

46 MM Tons by 2030.

• Attractive cost base

including low logistics,

land, utilities, and labor

costs.

The Business Case

Rigid Barrier Packaging Opportunity

Source: Frost & Sullivan Analysis © Saudi Arabian Oil Company, 2020


3637

3839

4041

4243

4445

46

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Global Demand of Rigid Barrier Packaging

The global demand onRigid Barrier Packagingis expected to grow at2.5% from 36 MM Ton in2020 and will reach 46MM Ton year 2030

Source: Frost & Sullivan Analysis

Global Demand on Rigid Barrier Packaging



252 259 265 272 279 286 293 300 307 315 323

180186

191197

203209

215222

228235

242

433444

456469

481494

508522

536550

565

0

100

200

300

400

500

600

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KSA & GCC Demand of Rigid Barrier Packaging

KSA Rest of GCC

• The KSA demand on

Rigid Barrier Packaging

is expected to grow at

2.5% from 252 K Ton in

2020 and will reach 323

K Ton year 2030.

• Total GCC demand is

expected to reach 565 K

Ton by year 2030.

Source: Saudi Aramco Internal Analysis

Saudi Arabia and GCC’s Demand on Rigid Barrier Packaging

2.5%



Key ingredients are available locally and in GCC region.

Available Locally

Localization Opportunity

Propylene

Ethylene HDPE

Polypropylene



Most commonly used

polymer is HDPE (70%)

followed by PP (30%)

which are available locally

Value Chain Mapping

© Saudi Arabian Oil Company, 2020Source: Frost & Sullivan Analysis, Saudi Aramco Internal Analysis


• All the raw material is available

locally. Most commonly used polymer

is HDPE 70% followed by PP 30%

which is already produced by SA's

affiliates SADARA, Saudi Kayan.

• Intermediate is available locally. • Opportunity exists to

improve current

manufacturing processes.

Injection molding and blow

molding applications have

been used for the past 30-

40 years. Only Minimal

changes in the technology

took place.

• High potential for the

localization of the rigid

barrier packaging while raw

material is available

locally.

Raw Material Intermediate TechnologyFinished Products


Value Chain Mapping Analysis


Plastic Pails Value






establish multiple


in the kingdom for pails to

cater for the growing

demand in the kingdom

and the region.

• KSA demand is growing at

6% and will reach 92 K Ton

by year 2030.



land, utilities, labor costs

and availability of raw

materials.

Pails Opportunities


The Opportunity The Business Case


• The global demand on

Pails is expected to

grow by 2.2 % from 10

MM Ton in 2020 and

will reach 13 MM Ton

year 2030.

• The growth rate of

2.2% is driven by the

growth of

infrastructure and

liquid chemicals trade.


2.2%

10.2 10.4 10.7 10.9 11.1 11.4 11.6 11.912.2

12.412.7

0

2

4

6

8

10

12

14

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Global Demand on Pails


Global Demand on Pails



• KSA demand on Pails

is expected to reach

92 K Ton in 2030.


expected to reach 187

K Ton.

• The pails segment has

been leading the

market and it is

expected to retain its

position over next few

years.

74 76 78 79 81 83 85 86 88 90 92

5356

6063

6771

7580

8490

95

127132

137142

148154

160166

173180

187

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160

180

200

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KSA Rest of GCC

Saudi Arabia and GCC’s Demand on Pails


KSA & GCC Demand on Pails


Key ingredients are available locally and in GCC

region.

HDPE

Plastic Pails

Ethylene

• Most commonly used

polymer is PP (60%)

followed by HDPE

(40%) which are

available locally.

• No secondary RM is

required.Available Locally


PolypropylenePropylene

Value Chain Mapping



• Available locally. The

opportunity is for the existing

manufacturers to increase their

PP & HDPE production

capacities to meet growing

local and global demand.

• The opportunity is for localizing the

Key innovative trends in the

Plastic Pails segment are:

Straight and tapered walls

Tamper-proof lids

In-mold labeling technology

Heat transfer labeling for better

brand visibility

Monolayer and multilayer

barrier container.

Specialized handles and

spouts for better ergonomics.

• Opportunity exist to

establish local companies

to meet growing demand

on food and beverages

and dyes, coating, paints

…etc.


establish recycling

business in the kingdom.

• High degree of recyclability

exists in this segment

owing to high chemical

inertness and structural

rigidity.

• Plastic pails are highly

recyclable. Pails are

already witnessing a 15-

20% share of recycled

plastics being used.

Feedstock and Basic Chemicals

TechnologyFinished Products

Recycling





Opening the Session


Plastic Pails







Stand-up Pouches













Session Outline


Heavy Duty Plastic

Storage Containers

Value PropositionFebruary 2020




establish multiple


in the kingdom for heavy

duty containers to cater

for the growing demand in

the kingdom and the

region.

The Opportunity



by year 2030.





materials.

The Business Case


Heavy Duty Containers Opportunity



• The global demand on

Heavy Duty

Containers is

anticipated to grow at

3.1% to reach 7.7 MM

Ton 2030.


5.75.8

6.06.2

6.46.6

6.87.0

7.27.5

7.7

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

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Global Forecast on Heavy Duty Containers


Global Demand on Heavy Duty Containers




Heavy Duty

Containers is

expected to grow at

4% to reach 59 K Ton

by 2030.

• GCC comprises the

majority of the MENA

market and the growth

is driven by two major

economies, KSA and

UAE.

40 42 43 45 47 49 51 5355

5759

2930

3132

3335

3638

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42

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7477

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8790

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KSA Rest of GCC

KSA & GCC’s Forecast on Heavy Duty Containers


KSA & GCC Demand on Heavy Duty Containers



region.

• High density

polyethylene (HDPE) is

the main material used

within the plastic

products segment, and

its share is as high as

70%.

• Plastic Containers

represent less than half

of the market and

compete with metal

containers in most of

the industrial

applications.

Available Locally


HDPE Heavy Duty Storage ContainersEthylene

Value Chain Mapping



• Available locally. The opportunity is for

the existing manufacturers to increase

their HDPE production capacities to

meet growing local and global demand.

• The material and its different grades can

easily be sourced locally.

• High potential to localize facilities

since the production of heavy duty

containers in KSA or other GCC

countries since it is relatively low.

• Opportunity exist to Internal

adoption of heavy duty plastic

containers by the oil and gas industry,

combined with the growth of

manufacturing industries will help

accelerate adoption.

• Technologies for production of plastic

heavy duty containers include

injection molding and blow molding,

both are mature and no major

disruptions are expected.

• High potential for establishing

recycling industry in the region

• Several companies are already

implementing technologies that allow

efficient recycling, including even

recycling of old food containers for the

production of new food containers.

Raw Material Manufacturing & Technology Recycling




Plastic Crates for

Retail & Warehousing

Value Proposition February 2020




establish multiple


in the kingdom for crates

for retail and

warehousing to cater for

the growing demand in the

kingdom and the region.

The Opportunity



by year 2030.





materials.

The Business Case


Crates for Retail & Warehousing Opportunity




524548

574601

629659

690722

756791

829

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The global demand

on Crates for retail

and warehousing is

expected to grow at

5% from 524 K Ton

in 2020 and will

reach 829 K Ton year

2030

Global Demand Forecast of Crates for Retail Warehousing


Global Demand on Crates for Retail Warehousing


3.66 3.84 4.02 4.214.40

4.614.83

5.055.29

5.545.80

2.622.74

2.873.00

3.153.29

3.453.61

3.783.96

4.14

6.286.58

6.897.21

7.557.90

8.288.66

9.079.50

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0

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4

6

8

10

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KSA Rest of GCC


Crates for retail and

warehousing is

expected to grow at

5% from 3.70 K Ton in

2020 and will reach

6 K Ton year 2030.



K Ton by year 2030.

Saudi Arabia’s & GCC Demand Forecast of Crates for Retail Warehousing

© Saudi Arabian Oil Company, 2020Source: Saudi Aramco Internal Analysis

KSA & GCC Demand on Crates for Retail Warehousing



Crates for Retail Warehousing

Propylene

• There is an opportunity

to localize the Crates for

Retail Warehousing

• High potential exists to

localize new technologies

to modify the processes

and the final product.

Available Locally


Ethylene HDPE

Polypropylene Crates for Retail Warehousing

Value Chain Mapping



• Raw Material is available

locally.

• Intermediate is available

locally.


localization of the crates for

retail warehousing while raw

material is available locally.

• Potential exists to further develop

logistics and supply chain.

Raw Material IntermediateFinished Products

Transportation and Logistics



Transport crates/boxes

with integral handle





establish multiple


in the kingdom for

transport crates/boxes

with integral handles to



and the region.

The Opportunity



by year 2030.





materials.

The Business Case


Transport Crates/Boxes with Integral Handles Opportunity


Saudi Aramco: PublicSaudi Aramco: Public

818 837 856 876 896 917 938 960 982 1,004 1,027

0

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The global demand

on Transport

crates/boxes with

integral handle is

expected to grow at

2% from 818 K Ton

in 2020 and will reach

1,000 K Ton year

2030

Global Demand Forecast of Transport Crates/Boxes


Global Demand on Transport Crates/Boxes


Saudi Arabia’s & GCC Demand Forecast of Transport Crates/Boxes

5.7 5.9 6.0 6.1 6.3 6.4 6.6 6.7 6.9 7.0 7.2

4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 5.0 5.1

9.8 10.0 10.3 10.5 10.8 11.0 11.3 11.5 11.8 12.1 12.3

0

2

4

6

8

10

12

14

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KSA Rest of GCC


Transport

crates/boxes with

integral handle is

expected to grow at


2020 and will reach

7 K Ton year 2030.


expected to reach

12 MM Ton by year

2030.

Source: Saudi Aramco Internal Analysis © Saudi Arabian Oil Company, 2020

KSA & GCC Demand on Transport Crates/Boxes




to localize the Transport

crates boxes.





Available Locally


Propylene

Ethylene HDPE

Polypropylene

Transport crates boxes

Transport crates boxes

Value Chain Mapping




locally.

• available with Saudi Aramco

affiliates and other

companies in the kingdom

such as SABIC.


locally.


localization of the transport

crates/boxes, while raw








Plastic Corrugated

Boxes Value





establish multiple


in the kingdom for

corrugated boxes to cater


the kingdom and the

region.

The Opportunity


7.4% and will reach 15.4 K

Ton by year 2030.





materials.

The Business Case

Corrugated Boxes Opportunity



The global demand on

Corrugated boxes is

expected to grow at 7.4%

from 1 MM Ton in 2020

and will reach 2.2 MM

Ton year 2030


1.071.15

1.241.33

1.431.53

1.65

1.77

1.90

2.04

2.19

0.0

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1.0

1.5

2.0

2.5

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Global Demand of Corrugated Boxes

Corrugated Boxes Global Forecast





Corrugated boxes is

expected to grow at

7.4% from 7.5 K Ton

in 2020 and will

reach 15 K Ton year

2030.


expected to reach

26 K Ton by year

2030.

7.4%

7.5 8.18.7

9.310.0

10.711.5

12.413.3

14.315.4

5.45.8

6.26.7

7.17.7

8.28.9

9.5

10.2

11.0

12.913.8

14.916.0

17.118.4

19.821.2

22.8

24.5

26.3

0

5

10

15

20

25

30

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KSA & GCC Demand of Corrugated Boxes

KSA Rest of GCC

Corrugated Boxes Saudi Arabia and GCC Forecast




region.

PolyethyleneEthylene

The main raw materials

that go into the production

of plastics include

polypropylene and

polyethylene are available

locally

Available Locally


Polypropylene PP Corrugated Boxes Propylene

PE Corrugated Boxes

Value Chain Mapping



• Available locally. The opportunity is for the

existing manufacturers to increase their PP &

PE production capacities to meet growing


• High degree of influence pre-exists through

SABIC, SADARA etc.

• High potential to localize plastic

corrugated boxes manufacturers. There

are only one or two companies that

manufacture plastic corrugated boxes in

the region.

• High potential for new technologies.

Technology is less mature for usage of

plastic.

• Plastic accounts only 1%. Significant

opportunity exists if the cost reduction

can be achieved on corrugated plastic

boxes in line with the significant functional

advantages they offer.

• Opportunity exists to establish local

companies to meet growing demand

on FMCG and the presence of large

companies including Nestle, Unilever

and P&G there exists a future

opportunity in the Kingdom.

• High potential opportunity exists in

developing the plastic recycling

industry in KSA.

Feedstock and Basic Chemicals Manufacturing & Technology Finished Products





Opening the Session


Plastic Pails







Stand-up Pouches













Session Outline


Pharma and Cosmetic

Plastic Containers and

Bottles Value




• Potential exist to establish

multiple manufacturing

facilities in the kingdom

for pharma & cosmetic

containers bottles to



and the region.

1. KSA demand is growing at

4% and will reach 70 KT by

year 2030.

2. Attractive cost base




materials.

Pharma and Cosmetic Containers Bottles Opportunity





Pharma and Cosmetic

Containers Bottles is


from 7 MM Tons in 2020

and will reach 10MM Tons

year 2030


3.2%

7.2 7.5 7.7 7.9 8.2 8.58.7

9.09.3

9.69.9

0.0

2.0

4.0

6.0

8.0

10.0

12.0

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Global Demand of Product Pharma and Cosmetic Container Bottles

Global Demand on Pharma and Cosmetic Container Bottles





Pharma and Cosmetic

Containers Bottles is

expected to grow at

4% from 51 K Tons in


K Tons year 2030.


expected to reach

124 K Tons by year

2030.

51 53 54 56 58 60 62 64 66 68 70

36 3839

4143

4446

4850

5254

87 9094

97100

104108

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KSA & GCC Demand of Pharma and Cosmetic Container Bottles

KSA Rest of GCC

4%

Saudi Arabia and GCC’s Demand on Pharma and Cosmetic Containers Bottles




region.

HDPE, LDPE ResinsPharma and Cosmetic

ContainersPolyethylene

(HDPE) at 40%, (LDPE)

40% and (PET) 20% . All

these three are produced

in the kingdom by

companies like SABIC and

SATORP.

Available Locally


Value Chain Mapping



• Ethylene and

Polyethylene are

available in the

Kingdom. Opportunity

exist for current

manufacturers to

increase production to

meet growing global

demand.

• LDPE, HDPE and PET

are available in the

Kingdom. Opportunity

exist for current

manufacturers to

increase production to

meet growing global

demand.


establish local

companies to meet

growing demand on

food and beverages

and pharmaceutical

industries.


establish world

class food and

beverages

industries and

pharmaceutical

industries.


establish recycling

business in the

kingdom.

Raw Material IntermediatesFinished Products

F&B & Pharma Products

Manufacturers Recycling



Protective Flexible

Packaging for Fresh

Food Value PropositionFebruary 2020





establish multiple


in the kingdom for

protective flexible

packaging to cater for the

growing demand in the




by year 2030.





materials.

Protective Flexible Packaging Opportunities




The global demand onProtective flexiblepackaging for freshfood is expected togrow at 3% from 5.8MM Ton in 2020 andwill reach 7.7 MM Tonyear 2030

5.765.93

6.106.28

6.466.65

6.847.04

7.247.45

7.67

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

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Global Demand of Product Protective Flexible Packaging for Fresh Food


3%

Global Demand Forecast of Protective Flexible Packaging for Fresh Food



• The KSA demand onProtective flexiblepackaging for freshfood is expected togrow at 3% from 40 KTon in 2020 and willreach 54 K Ton year2030.

• Total GCC demand isexpected to reach 92 KTon by year 2030 .

40 42 43 44 45 47 48 49 51 52 54

2930

3131

3233

3435

3637

38

6971

7375

7880

8284

8789

92

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60

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80

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100

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KSA Rest of GCC


3%

Saudi Arabia’s Demand Forecast of Protective Flexible Packaging for Fresh Food


KSA & GCC Demand of Product Protective Flexible Packaging for Fresh Food




to localize the Protective

flexible packaging for

fresh food.





Available Locally


Ethylene HDPE

Propylene Polypropylene

Protective flexible packaging

for fresh food

Protective flexible packaging

for fresh food

Value Chain Mapping




locally.


locally.


localization of the protective

flexible packaging for fresh

food while raw material is

available locally.







Stand-Up Pouches






establish multiple

manufacturing facilities in

the kingdom for stand-up

pouches to cater for the

growing demand in the




by year 2030.





materials.

Stand-Up Pouches Opportunities





Stand Up Pouches is


from 6 MM Ton in 2020

and will reach 8 MM Ton

year 2030


2.9%

6.26.4

6.56.7

6.97.1

7.37.5

7.88.0

8.2

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

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Global Demand of Stand Up Pouches

Stand Up Pouches Global Forecast




6% • The local demand on

Stand Up Pouches is

expected to grow at

6% reaching 59 K Ton

in 2030.


expected to reach

116 K Ton by year

2030.45 46 47 49 50 51 53 54 56 58 59

3234

3638

4043

4548

5154

57

7680

8386

9094

98102

107111

116

0

20

40

60

80

100

120

140

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KSA & GCC Demand of Stand Up Pouches

KSA Rest of GCC

Stand Up Pouches Saudi Arabia and GCC Forecast




region.

LDPELDPE stand up pouches

Ethylene

• Most commonly used

polymer is LDPE with

or without paper outer

covering.

• Secondary raw

materials are easily

sourced within the

region.

• Stand-up Pouches are

manufactured using

multiple layered films

that protect the

contents.Available Locally


Batch colors, aluminum and paper2nd RM

Value Chain Mapping




existing manufacturers to increase their

LDPE production capacities to meet growing


• Secondary raw materials including master

batch colors, aluminum and paper which are

available within the region.

• Stand-up pouches are made of highly

sterilized materials. These materials help in

protecting the product from contamination,

making them ideal for food & beverages

packaging.

• Overall the market has adopted these

pouches over other formats and are hence

a mature category with incremental

innovations further driving the demand.

• Opportunity exist to establish local

companies to meet growing demand

on food & beverages industry.

• More and more end users are

switching from rigid to flexible

packaging to reduce transport cost

and stand up pouches are the perfect

bridge packaging between rigid and

flexible. Stand-up pouches are 4-5

times lighter than metal cans which

results in low packaging weight and

cost of products.

Feedstock and Basic Chemicals Technology Finished Products



Returnable Plastic

Packaging Systems






establish multiple


in the kingdom for

returnable plastic

packaging systems to



and the region.



by year 2030.





materials.

Returnable Plastic Packaging Systems Opportunities




The global demandon ReturnablePackaging Systems isexpected to grow at2% from 4.7 MM Tonin 2020 and will reach6 MM Ton year 2030

4.71 4.81 4.92 5.04 5.15 5.27 5.39 5.52 5.64 5.77 5.91

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Qu

an

tity

in

( M

M T

on

)

Global Demand of Product Returnable Packaging Systems


2%

Global Demand Forecast of Returnable Packaging Systems



• The KSA demand onReturnable PackagingSystems is expected togrow at 2% from 33 KTon in 2020 and willreach 41 K Ton year2030.

• Total GCC demand isexpected to reach71 K Ton by year 2030.

33 34 34 35 36 37 38 39 40 40 41

24 24 25 25 26 26 27 28 28 29 30

56 58 59 60 62 63 65 66 68 69 71

0

10

20

30

40

50

60

70

80

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Qu

an

tity

( K

To

n)

KSA & GCC Demand of Product Returnable Packaging Systems

KSA Rest of GCC


2%

Saudi Arabia’s Demand Forecast of Returnable Packaging Systems





to localize the Returnable

Packaging Systems.





Available Locally


Propylene

Ethylene HDPE

Polypropylene

Returnable Packaging Systems

Returnable Packaging Systems

Value Chain Mapping




locally.


locally.


localization of the returnable

packaging systems while

raw material is available

locally.









Opening the Session


Plastic Pails







Stand-up Pouches













Session Outline


Expandable

Polystyrene Value






establish multiple


in the kingdom for

expandable polystyrene

to cater for the growing


and the region.



by year 2030.





materials.

Expandable Polystyrene Systems Opportunities




The global demandon ExpandablePolystyrene isexpected to grow at3% from 7.2 MM Tonin 2020 and will reach9.5 MM Ton year2030

7.27.4

7.67.8

8.08.3

8.58.7

9.09.2

9.5

0

1

2

3

4

5

6

7

8

9

10

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Qu

an

tity

in

( M

M T

on

)

Global Demand of Product Expandable Polystyrene


3%

Global Demand Forecast of Expandable Polystyrene



• The KSA demand onExpandablePolystyrene is expectedto grow at 3% from 50K Ton in 2020 and willreach 66 K Ton year2030.

• Total GCC demand isexpected to reach 113K Ton by year 2030.

50 52 53 55 56 58 59 61 63 65 66

36 3738

3940

4142

4445

4647

86 8991

9496

99102

105108

111114

0

20

40

60

80

100

120

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Qu

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tity

( K

To

n)

KSA & GCC Demand of Product Expandable Polystyrene

KSA Rest of GCC


3%

Saudi Arabia’s Demand Forecast of Expandable Polystyrene




Polystyrene Expandable Polystyrene


to localize the

Expandable Polystyrene.





Available Locally


Benzene

Value Chain Mapping




locally.


locally.


localization of the

expandable polystyrene

while raw material is

available locally.







Refillable Containers-

Rigid Plastics Value





establish multiple


in the kingdom for

refillable containers to



and the region.



by year 2030.





materials.


Refillable Containers Opportunities





Refillable Containers is


to reach 5 MM Ton year

2030.

With growth expected in

line with global demand of

modern retail (food and

household) and FMCG

products like Shampoos

and Detergents.


4.1 4.1 4.2 4.3 4.4 4.4 4.5 4.6 4.7 4.7 4.8

0

1

2

3

4

5

6

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Qu

an

tity

in

(M

M T

on

)

Global Demand of Refillable Containers

1.7%

Refillable Containers Global Forecast




Refillable Containers


5% from 29 K Ton in


K Ton year 2030.


expected to reach 69 K

Ton by year 2030.

29 30 30 31 31 32 33 33 34 34 35

21 2223

2426

2728

3031

3334

50 5254

5557

5961

6365

6769

0

10

20

30

40

50

60

70

80

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Qu

an

tity

(K

To

n)

KSA & GCC Demand of Refillable Containers

KSA Rest of GCC


Refillable Containers Saudi Arabia and GCC Forecast




region.

HDPE HDPE Refillable ContainersEthylene • HDPE at 60%,

followed by PET at

40%, both of which

are already produced

in the Kingdom

Available Locally


PETEthylene PET Refillable Containers

Value Chain Mapping




existing manufacturers to increase their

HDPE & PET production capacities to meet

growing local and global demand.

• Secondary RMs include master batch colors

which are easily sourced within the region.

• High potential in R&D efforts in the

refillable container market are being done

on two fronts: durability, and easy cleaning.

• Opportunity exist to establish local

companies for refillable containers for

large scale retail to consumer to

manufacturer value chain is largely

non existent.

• High potential to localize recycling

companies, since the refillable

container are made of only one type

of polymer so the eventual

recyclability is high in case of

Personal care storage (shampoos,

soaps etc.) but is low in case of food

storage systems.

Feedstock and Basic Chemicals Technology Finished Products



Plastic Pump Sprays

To Replace Aerosol

Cans Value







for pump sprays to cater


the kingdom and the

region.


4.7% and will reach 35 KT

by year 2030.





materials


Pump Sprays Opportunities





Pump Sprays is expected

to grow at 4.7% from

3 MM Tons in 2020 and

will reach 5 MM Tons

year 2030


3.13.3

3.43.6

3.84.0

4.14.3

4.54.7

5.0

0

1

2

3

4

5

6

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Qu

an

tity

in

( M

M T

on

)

Global Demand of Product Pump Sprays

Global Demand on Pump Sprays



22 23 24 25 26 2829

3032

3335

1616

1718

1920

2122

2324

25

3839

4143

4547

5052

5457

60

0

10

20

30

40

50

60

70

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Qu

an

tity

( K

To

n)

KSA & GCC Demand of Pump Sprays

KSA Rest of GCC


Pump Sprays is

expected to grow at

4.7% from 22 K Tons


35 K Tons year 2030.


expected to reach

60 K Tons by year

2030.


Saudi Arabia and GCC’s Demand on Pump Sprays




region. The major raw material

used is PET, followed by

HDPE in certain

application segments.

These materials are

available with locally.

Available Locally


PET Pump SpraysEthylene

HDPE Pump SpraysEthylene

Value Chain Mapping



• Ethylene and Polyethylene are

available in the Kingdom.

Opportunity exist for current

manufacturers to increase

production to meet growing

global demand.

• PET and HDPE are available

in the Kingdom. Opportunity

exist for current



global demand.


establish local

companies to meet

growing demand on

pump sprays.


establish recycling


Raw Material Intermediates Finished Products Recycling







for shrink wrapping to



and the region.


3% and will reach 19 K T by

year 2030.





materials.

Shrink Wrapping Opportunities





Shrink Bundling Film is

expected to grow at 3%

from 2.1 MM Ton in 2020

and will reach 2.8 MM

Ton year 2030


2.12.1

2.22.3

2.32.4

2.52.5

2.62.7

2.8

0.0

0.5

1.0

1.5

2.0

2.5

3.0

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

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on

)

Global Demand of Shrink Bundling Film

Global Demand on Shrink Bundling Film




14.4 14.9 15.3 15.8 16.2 16.7 17.2 17.7 18.3 18.8 19.4

10.310.6

10.911.3

11.611.9

12.312.7

13.013.4

13.8

24.725.5

26.227.0

27.828.7

29.530.4

31.332.3

33.2

0

5

10

15

20

25

30

35

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Qu

an

titi

y (

K T

on

)

KSA & GCC Demand of Shrink Bundling Film

KSA Rest of GCC

3%




3% from 14 K Ton in


K Ton year 2030.


expected to reach

33 K Ton by year 2030.

Saudi Arabia and GCC’s Demand on Shrink Bundling Film




region. Most commonly used

polymer is LDPE 40%

followed by LLDPE 30%

and PP 30% which is

already produced by SA's

affiliates Sadara, Saudi

Kayan.Available Locally


LDPE LPDE FilmPolyethylene

LLDPE LLDPE FilmPolyethylene

PP PP FilmPropylene

Value Chain Mapping



• Ethylene and Polyethylene


Kingdom. Opportunity exist

for current manufacturers to

increase production to meet

growing global demand.

• LDPE, LLDPE and PP are

available in the Kingdom.

Opportunity exist for current



global demand.


establish local

companies to meet

growing demand on

shrink films.


establish recycling







Opening the Session


Plastic Pails







Stand-up Pouches













Session Outline


Reusable Coffee

Cups – Rigid Plastics





establish multiple


in the kingdom for

reusable coffee cups to

keep up with the growing

demand.


3% and will reach 42 KT by

year 2030.



land, utilities, labor costs,


materials.

Reusable Coffee Cups Opportunity




The global demand

on Reusable coffee

cups is expected to

grow at 3% from

5 MM Ton in 2020

and will reach

6 MM Ton year 2030

5.1 5.2 5.3 5.3 5.4 5.5 5.6 5.7 5.8 5.9 6.0

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

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)

Global Demand of Reusable Coffee Cups


3%

Global Demand Forecast of Reusable Coffee Cups




Reusable coffee cups




K Ton year 2030.



K Ton by year 2030 .

35.6 36.2 36.8 37.4 38.1 38.7 39.4 40.1 40.7 41.4 42.1

25.4 25.9 26.3 26.7 27.2 27.7 28.1 28.6 29.1 29.6 30.1

61.0 62.1 63.1 64.2 65.3 66.4 67.5 68.7 69.8 71.0 72.2

0

10

20

30

40

50

60

70

80

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Qu

an

tity

( K

To

n)

KSA & GCC Demand of Product Reusable Coffee Cups

KSA Rest of GCC

Saudi Arabia’s Demand Forecast of Reusable Coffee Cups




PET resin Reusable Coffee CupsEthylene


to localize the Reusable

Coffee Cups.





Available Locally


Value Chain Mapping




locally.


locally.


localization of the reusable

coffee cups while raw








Plastic Stretch Wrap

in Roll Value








for stretch wrap rolls to



and the region


2.1% and will reach 13.2 K

by year 2030.





materials.

Stretch Wrap Rolls Opportunities





Stretch Wrap Rolls is


from 1.53 MM Tons in

2020 and will reach 1.89

MM Tons year 2030


1.53 1.56 1.60 1.63 1.66 1.70 1.73 1.77 1.81 1.85 1.89

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2.0

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

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)

Global Demand on Stretch Wrap Rolls


Global Demand of Stretch Wrap Rolls




Stretch Wrap Rolls is

expected to grow at

2.1% from 10.7 K Tons


13.2 K Tons year 2030.


expected to reach

22.6 K Tons by year

2030.

10.7 10.9 11.2 11.4 11.6 11.9 12.1 12.4 12.7 12.9 13.2

7.7 7.8 8.0 8.2 8.3 8.5 8.7 8.9 9.0 9.2 9.4

18.4 18.8 19.2 19.6 20.0 20.4 20.8 21.3 21.7 22.2 22.6

0

5

10

15

20

25

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

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an

tity

( K

To

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KSA Rest of GCC

Saudi Arabia and GCC’s Demand on Stretch Wrap Rolls


KSA & GCC Demand of Stretch Wrap Rolls



region.

LLDPE Stretch Wrap RollsPolyethylene

100% of stretch wrap films

are made of plastic. Most

commonly used polymer

is LLDPE. Aramco’s

internal capability includes

products: LLDPE F2111,

LLDPE.

Available Locally


Value Chain Mapping




Recycling


locally.


locally.


localization of the stretch

wrap roll while raw material

is available locally.

• High potential for establishing

recycling industry in the region.

• Many Stretch Wrap Roll producers

have developed programs to take

back the used stretch film from

customers and recycle it.



Plastic Drums and

Barrels Value





establish multiple


in the kingdom for drums

and barrels to keep up

with the growing demand.

• Drums and barrels is


CAGR in the kingdom in

2030 and will reach 13.7 K

Ton.



land, utilities, labor costs,


materials.

Drums and Barrels Opportunity





1.54 1.57 1.61 1.65 1.69 1.73 1.77 1.81 1.86 1.90 1.95

0.0

0.5

1.0

1.5

2.0

2.5

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

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)

Global Demand of Drums and Barrels

The global demand onDrums and Barrels isexpected to grow at 2.4%from 1.5 MM Ton in 2020and will reach 2.0 MM Tonyear 2030

Global Demand on Drums and Barrels




• The KSA demand onDrums and Barrels isexpected to grow at3% from 11 K Ton in2020 and will reach14 K Ton year 2030.

• Total GCC demand isexpected to reach24 K Ton by year 2030

10.8 11.1 11.3 11.6 11.9 12.2 12.5 12.8 13.1 13.4 13.7

7.7 8.0 8.2 8.4 8.7 9.0 9.2 9.5 9.810.1

10.4

18.5 19.0 19.5 20.1 20.6 21.1 21.7 22.3 22.923.5

24.1

0

5

10

15

20

25

30

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

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tity

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KSA & GCC Demand of Drums and Barrels

KSA Rest of GCC

Saudi Arabia and GCC’s Demand on Drums and Barrels




Ethylene HDPE Drums and Barrels

Propylene Polypropylene Drums and Barrels

Available Locally


Most commonly used polymer

is HDPE (70%) followed by PP

(30%) which are available

locally

Value Chain Mapping




locally. Most commonly used polymer

is HDPE 70% followed by PP 30%

which is already produced locally.

• Intermediate is available locally. • High potential for the

localization of drums and

barrels while raw material

is available locally.

• High potential for

establishing recycling

industry in the region.

• Use of recyclable materials

is expected to increase

from 15-25 %.

Raw Material Intermediate Finished Products Recycling





Opening the Session


Plastic Pails







Stand-up Pouches













Session Outline


Rigid Plastic

Beverage Bottles

and Jars Value





establish multiple


in the kingdom for rigid

beverage bottles and jars

to serve growing local,

regional and international

demand .

1. Global demand is expected

to grow at 3% annually for

the next 10 years to reach

34 MM Tons by 2030 .



land, utilities, and labor

costs.

Rigid Beverage Bottles and Jars Opportunity

© Saudi Arabian Oil Company, 2020Source: Frost & Sullivan Analysis



The global demand onRigid Beverage Bottlesand Jars is expected togrow at 3% from 26 MMTon in 2020 and will reach34 MM Ton year 2030

2627

2829

2930

3132

3334

34

0

5

10

15

20

25

30

35

40

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

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Rigid Beverage Bottles and Jars Global Demand

© Saudi Arabian Oil Company, 2020Source: Frost & Sullivan Analysis

Global Demand of Rigid Beverage Bottles and Jars



• The KSA demand onRigid Beverage Bottlesand Jars is expected togrow at 6% from 190 KTon in 2020 and willreach 250 K Ton year2030.

• Total GCC demand isexpected to reach 490 KTon by year 2030.

191 196 201 206 212 218 224 230 236 242 249

136144

153162

172182

193205

217230

244

327340

354368

384400

417434

453472

492

0

100

200

300

400

500

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

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an

tity

( K

To

n)

KSA Rest of GCC

Saudi Arabia and GCC’s Demand on Rigid Beverage Bottles and Jars Forecast


KSA & GCC Demand of Rigid Beverage Bottles and Jars



region.

HDPEHDPE Rigid Beverage Bottles

and JarsEthylene Most commonly used

polymer is HDPE (60%)

followed by PET (30%)

which are available locally

Available Locally


PETEthylene PET Rigid Beverage Bottles and

Jars

Value Chain Mapping




locally. Opportunity exists for local

producers of HDPE and PET to

increase their production to supply the

growing demand for rigid beverage

bottles and jars.

• Even though the technology is

mature, incremental innovations in

bottle design has pushed the

market towards an innovation

driven industry.

• Manufacturers are patenting newer

blends of polymers to suit

particular beverage or food

material end usage as per the

climatic conditions of storage

hence the direction is more

towards improvement of plastic

utility rather than replacement.

• Opportunity exists to

establish multiple local

companies to meet

growing demand for rigid

beverage bottles and

jars in the Kingdom and in

the region.

• High Degree of

recyclability owing to FDA

regulations regarding Virgin

only for food applications.

Feedstock and Basic Chemicals Technology Finished Products Recyclability



Plastic Industrial

Strapping Value







for industrial strapping to



and the region.


3% and will reach 4.60 K

Ton by year 2030.





materials.

Industrial Strapping Opportunity





Industrial Strapping is


from 513 K Ton in 2020

and will reach 663 K Ton

year 2030


513 526540

554568

583598

614630

646663

0

100

200

300

400

500

600

700

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

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in

( K

To

n)

Global Demand of Industrial Strapping

Global Demand on Industrial Strapping




3.6 3.7 3.8 3.9 4.0 4.1 4.2 4.3 4.4 4.5 4.6

2.6 2.6 2.7 2.8 2.8 2.93.0

3.13.1

3.23.3

6.2 6.3 6.5 6.6 6.8 7.07.2

7.47.6

7.88.0

0

1

2

3

4

5

6

7

8

9

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

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an

tity

( K

To

n)

KSA & GCC Demand of Industrial Strapping

KSA Rest of GCC


Industrial Strapping is

expected to grow at


2020 and will reach 4.6

K Ton year 2030.


expected to reach

8 K Ton by year 2030.

Saudi Arabia and GCC’s Demand on Industrial Strapping




region.

Ethylene Glycol PET FilmEthylene

Primary raw materials

include polyethylene

terephthalate (PET),

polypropylene (PP), nylon

based on the specific end

application which are

available locallyAvailable Locally


Polypropylene Propylene based FilmPropylene

Nylon Nylon FilmsBenzene

Value Chain Mapping



• Available in the kingdom.

Opportunity for existing


capacities to meet growing local

and global demand.

• Available in the Kingdom. • Opportunity exist to

establish local companies

to meet growing demand on

industrial strapping.


establish a recycling


Feedstock and Basic Chemicals

Intermediates and Commodity

Chemicals

Finished Products

Recycling



Plastic Bubble Wrap








for bubble wrap to cater


the kingdom and the

region.


3.1% and will reach 3.5 KT

by year 2030.





materials.

Bubble Wrap Opportunities





Bubble Wrap is expected

to grow at 3.1% from

361 K Ton in 2020 and

will reach 490 K Ton year

2030


3.1%

361372

384395

408420

433447

461475

490

0

50

100

150

200

250

300

350

400

450

500

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

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Global Demand on Bubble Wrap


Global Demand for Bubble Wrap



3%


Bubble Wrap is

expected to grow at


2020 and will reach

3.5 K Ton year 2030.


expected to reach

6.2 K Ton by year

2030.

2.5 2.6 2.7 2.8 2.9 3.0 3.1 3.2 3.3 3.4 3.5

1.81.9

2.02.0

2.12.2

2.32.4

2.52.6

2.7

4.44.5

4.74.8

5.05.2

5.45.6

5.75.9

6.2

0

1

2

3

4

5

6

7

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

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KSA Rest of GCC

Saudi Arabia and GCC’s Demand on Bubble Wrap


KSA & GCC Demand for Bubble Wrap



region. Most commonly used

polymer is low density

polyethylene (LDPE),which

is already produced

locally.

Available Locally


LDPE Bubble WrapPolyethylene

Value Chain Mapping



• Ethylene and Polyethylene


Kingdom. Opportunity exist

for current manufacturers to

increase production to meet

growing global demand.

• Available in the Kingdom. • Opportunity exist to

establish local

companies to meet

growing demand on

bubble wrap.


establish a recycling

business in the

kingdom.






Opening the Session


Plastic Pails







Stand-up Pouches













Session Outline



Salem M. Alghamdi

Nonmetallic Business Development Group Leader

Saudi Aramco

[email protected]

In case you are interested in discussing these opportunities further, please contact

For More Business Development & Market Information Visit:

Website: www.iktva.sa/opportunities

Email: [email protected]


Abdullah F. Aljaralah

Contracts Advisor

Saudi Aramco

[email protected]

http://www.iktva.sa/opportunities

mailto:[email protected]

Thank you


Nonmetallic in Packaging Value Proposition Session · KSA & GCC Demand of Rigid Barrier Packaging...

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Transcript of Nonmetallic in Packaging Value Proposition Session · KSA & GCC Demand of Rigid Barrier Packaging...