Nigeria Flexible Packaging Market Size

Nigeria Flexible Packaging Market Analysis

The Nigerian flexible packaging market is expected to grow at a CAGR of 4.6% over the forecast period. Nigeria's demand for packaging solutions is driven by the expanding e-commerce sector, which is anticipated to rise due to the rising population, consumer spending, and increasing technology penetration.

• The growth of the e-commerce industry is driving packaging activities, especially as it continues to attract investments due to the increase of several end-user industries, such as the food processing industry, cosmetics, household care, etc.
• The growth of the food retail industry in Nigeria will likely drive the demand for flexible packaging. According to the United States Department of Agriculture, the retail food industry of Nigeria was anticipated to exceed USD 20 billion by 2022, accounting for 16.4% of Nigeria's GDP. Further, many consumers are gradually shifting towards supermarkets and convenience stores, stimulating market growth.
• Furthermore, Nigeria's foodservice sector has been growing despite overwhelming challenges, including the COVID-19 pandemic. The growing number of local and international franchises operating in major cities across the country and the vast consumer base with an increasingly youthful and urban population represent growth opportunities in the market. However, the lack of availability of raw materials and increasing raw material prices are restricting the growth of the flexible packaging market in Nigeria.
• Several international players have been expanding their operations in the country to expand their consumer base. For instance, in March 2021, UFlex Limited, one of the leading manufacturers of polymer sciences, commissioned its BOPET film manufacturing plant in the Ogun State of Nigeria with a production capacity of 45,000 TPA.
• Due to pandemic restrictions, the disruption in the supply chain halted the manufacturing activities of different end-user industries in Nigeria, resulting in lower production rates across the industries. In contrast, development activities increased in the manufacturing sector of Nigeria following the lifting of restrictions occasioned by the COVID-19 pandemic during the year 2021. According to the National Bureau of Statistics, manufacturing investment in Nigeria surged 157.4% to NGN 305.02 billion in 2021 from NGN 118.51 billion in 2020, signaling a recovery in the sector. The growth in the manufacturing activities in the country is positively impacting the flexible packaging market in Nigeria from the various end-user industries. Further, the Russia-Ukraine war has an impact on the overall packaging ecosystem.