Market Size of Africa Flexible Packaging Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 5.35 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Africa Flexible Packaging Market Analysis
The Africa Flexible Packaging Market is expected to register a CAGR of 5.35% over the forecast period from 2022 - 2027. Led by rising demand from the packaging industry and increasing demand for consumer goods, the flexible packaging market in the African region is expected to increase in the forecasted period. The way consumers view and interact with packages is changing. Due to the growing focus on sustainability, traditional rigid packaging solutions are being replaced by innovative and more viable flexible packaging. Increasing demand for consumer-friendly packages and enhanced product protection is expected to gain significant traction for flexible packaging as a feasible and cost-effective alternative.
The African region accounts for a significant and growing portion of worldwide food and feeds imports. Despite the violence and political uncertainty hanging over parts of the region, the growing populations and rising incomes drive higher demand for primary food and feed grains, soybeans, cotton, and meats. However, growing demand and climate-constrained production potential have forced the region to rely increasingly on food imports, raising its trade profile.
Various innovations have made it possible to develop sustainable and customized flexible packaging solutions, leading to an unprecedented rise in the flexible packaging market. Food and consumer goods imports into Africa make up a significant share of the flexible packaging market in the region. Rising demand for packaged foods, a need to keep costs down, and investments in food processing propel the growth of flexible packaging in the region. According to USDA Foreign Agricultural Service, the volume of rice imports to north Africa in 2019/2020 was 630 thousand metric tons, and in 2020/2021, it was 585 thousand tons.
Modern retailers are winning a larger share of the region's channel distribution. The shift from grocery retailers and open markets to supermarkets and hypermarkets has continued in Egypt in the last two years. Hypermarkets have shown the fastest growth rates in value share. They continue to offer comprehensive product ranges at competitive prices against traditional grocery retailers due to economical bulk packs and attractive price promotions. Moreover, amid political upheaval, curfews and safety concerns have made hypermarkets an engaging consumer environment. Metro, Hyper One, Carrefour, and Spinneys are burgeoning in the significant city outskirts.
Due to the effects of the pandemic, around 720 to 811 million people face hunger which was 120 million more than the previous year. The pandemic's more considerable impact was the disruption in the supply chain and the sudden change in demand. For consumers, the food security risk became more noticeable because of the compounded effect of the pandemic from the loss of livelihoods and jobs. The pandemic has highlighted the need for solid preparedness for health crises and the importance of always available and safe food.
