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Feasibility study for a sustainable packaging factory project.
Feasibility study for a sustainable packaging factory project.
Feasibility study for a sustainable packaging factory project: The project aims to establish a factory specializing in the production of sustainable and environmentally friendly packaging solutions using biodegradable or recyclable materials, such as paper, cardboard, plant fibers, or bioplastics. The factory serves multiple sectors, including the food industry, cosmetics, agricultural products, e-commerce, and restaurants.
The project focuses on meeting the growing demand for alternatives to traditional packaging, in light of global and local trends toward sustainability and reducing the carbon footprint.
Study Content
Targeted Products and Services
Targeted Products and Services
Products:
Recyclable cardboard boxes
Paper food packaging, compostable shopping bags, eco-friendly packaging containers for takeaway meals, paper or plant fiber packaging rolls, custom packaging for brands (Private Label)
Services:
Designing and customizing packaging based on clients’ visual identity. Providing consultations on sustainable packaging for companies. Wholesale supply to restaurants and stores. Monthly contracts to supply companies with renewable packaging products.
Market and Demand Analysis
Market and Demand Analysis
Demand for proven packaging solutions is a good model in Saudi Arabia, driven by: Packaging Transformation: Government regulations encourage minimal use of single-use plastic.
Environmental Awareness: Consumers prefer products with a lower environmental impact.
Corporate Social Responsibility: Many companies seek to enhance their image by adopting partnerships.
E-commerce Model: The need for efficient and sustainable packaging during shipping.
Target Market
Food and Beverage Companies
Supermarkets and Organic Stores
Restaurants and Cafes
E-commerce Companies
Government and Municipalities
Investment Benefits
Investment Benefits
A sector that is constantly evolving thanks to environmental and legislative trends.
The potential to export products to Gulf and European markets.
Ease of expansion by adding production lines for various materials (glass, plant fibers, bioplastics).
Possible government support within sustainability and industrial transformation programs.
An opportunity to build a strong brand in an emerging market with relatively low competition.
Investment Benefits
Investment Benefits
The project furthers the UK’s Vision 2030 in supporting the green economy and the transition to environmentally friendly industries.
Increasing institutional demand from major global companies operating locally.
Possibility of integration with logistics or packaging services to provide integrated solutions.
Reduced risks associated with market fluctuations, taking into account the essential nature of the product (continuous bag packaging).
Estimated Budgets
Estimated Budgets
The expected capital to establish a project ranges from 5 to 8 million Saudi riyals, depending on the size of the production lines and the technology used.
The expected rate of return on investment ranges from 28% to 40% in the first three years.
The expected payback period for the capital ranges from 3 to 4 years, depending on the operating volume and contractual demand.
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