13 August 2024

New report demonstrates huge potential for digital label growth in Saudi Arabia

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As the MENA region’s graphic arts and packaging industries gear up for the first Gulf Print & Pack exhibition in Saudi Arabia next year, a new report demonstrates the astonishing growth potential of the Saudi digital printing market.

The report, compiled by consultancy Astute Analytica, predicts that the Saudi digital print sector will generate revenues of US$ 766.58 million by 2032, up from US$ 351.33 million in 2023 - a CAGR of 9.24 percent during the forecast period 2024-2032.
 
This surge in demand for digital printing solutions in Saudi Arabia is largely driven by the Kingdom's ambitious Vision 2030 initiative, which aims to diversify the economy away from oil with a commitment to sustainability at its core. 
 
The Astute Analytica report identifies retail, education, and advertising as key drivers of growth. The retail sector alone has seen a 15 percent increase in demand for customized packaging and promotional materials.
 
The report estimates that government initiatives to support small and medium enterprises (SMEs) have resulted in a 25 percent increase in the number of businesses utilizing digital printing services for branding and marketing purposes. 
 
This rapidly growing market demand has already led 40 percent of printing businesses in Saudi Arabia to invest in digital printing technologies. 
 
At the same time, the sustainability benefits of digital printing, including reduced waste and lower energy consumption, have made it an attractive option to help meet government sustainability targets.
 
The rising number of internet users, now exceeding 33 million, further emphasizes the potential for digital marketing and print media convergence.
 
Saudi Vision 2030
 
The extraordinary growth prospects of the digital printing industry in Saudi Arabia are propelled by the Saudi Vision 2030 initiative, which aims to diversify the economy and reduce its dependence on oil. 
 
The Saudi economy hit a GDP of $1.747 trillion at the end of 2023, representing a GDP per capita of $32,586, demonstrating a stable economy and increasing consumer spending power - a conducive environment for business expansion. 
 
The Kingdom's commitment to adoption of cutting-edge technologies is reflected in its investment of $6.4 billion in the digital economy and the establishment of over 300 tech startups.
 
The recent hosting of the Global AI Summit in Riyadh underscores the government’s dedication to integrating artificial intelligence across industries, offering digital printing companies an opportunity to enhance their services with AI-driven solutions. 
 
The Kingdom's strategic initiatives, such as the $500 billion NEOM (a project to build a new kind of sustainable city), are expected to create demand for high-quality printed materials across a range of sectors. 
 
The report points out Saudi Arabia's population has a median age of 30.8 years, presenting unique market opportunities for culturally sensitive and visually appealing print materials. By leveraging these trends and opportunities, digital printing companies in Saudi Arabia can position themselves for significant growth and success in this fast-evolving market.
 
Digital labels
 
The growth of the consumer economy in Saudi Arabia increasingly favors digitally printed labels. This trend is driving a growing demand for personalized and visually appealing packaging, especially in the food and beverage sector. 
 
Consumers are becoming more conscious of the content and quality of the products they consume. This has led manufacturers to invest heavily in high-quality, informative, and attractive labels to meet these expectations. 
 
The rise of e-commerce has further fuelled the demand for digitally printed labels as online retailers seek to differentiate their products through unique and eye-catching packaging.
Additionally, regulatory requirements, such as the need for halal certification and compliance with the Saudi Food and Drug Authority (SFDA) standards, have made it imperative for manufacturers to invest in high-quality labeling.
 
With brands increasingly adopting neuromarketing methodologies to create labels that attract consumer attention within the first five seconds of observation, the Astute Analytica report concludes that the color digital label printing market in the Middle East and Africa, which includes Saudi Arabia, will continue to grow significantly. The Saudi printing industry, with an annual turnover of $800 million, is already the largest in the Gulf region.
 
Supplier landscape
 
The report finds that the digital printing market in Saudi Arabia is highly competitive, with Canon, Epson and Fujifilm among the top six players, collectively holding over 58 percent market share. 
 
According to these players, the shift to digital production in the Kingdom is being driven by the adoption of IoT and AI-based technologies, which are expected to provide lucrative growth opportunities going forward. The demand for short-run and variable printing is on the rise, aligning well with the capabilities of digital printing technologies. 
 
Furthermore, the Saudi government's diversification initiatives, aimed at reducing dependence on the oil industry, have led to increased investment in the printing sector, accelerating the adoption of modern printing technologies. This has created a favorable environment for major manufacturers like Canon, Agfa, Fujifilm, Kodak, HP, and Mimaki to introduce the latest digital printing innovations to the market.
 
It should also be noted that the report’s authors count 3D printing (additive printing) as part of the growing digital landscape. This could also represent a future avenue of growth for GPP.
 
In summary, the digital printing industry in Saudi Arabia is poised for substantial growth, driven by technological advancements, diverse sectoral applications, and supportive government policies. 
 
Gulf Print & Pack 2025
 
Gulf Print & Pack  2025 will be held for the first time in Saudi Arabia between 14 - 16 January at the Riyadh Front Exhibition Conference Center (RFECC). Building on the success of the established Dubai-based Gulf Print & Pack, the exhibition will showcase the latest in packaging technology, commercial printing, and packaging equipment. Gulf Print & Pack will now be an annual event alternating between Riyadh and Dubai, with the next Gulf Print & Pack Dubai exhibition in 2026. 
 
For more details on the research report visit here
 

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