Nigeria Packaging Market Size

Nigeria Packaging Market Analysis

The Nigeria Packaging Market size is estimated at USD 0.89 billion in 2024, and is expected to reach USD 1.03 billion by 2029, growing at a CAGR of 2.96% during the forecast period (2024-2029).

The packaging industry in Nigeria is attracting investments due to the increasing investments in several end-user industries, such as the food processing industry, cosmetics, household care, and others.

• The consistently increasing demand for alcoholic beverages is another factor attributed to the significant demand for glass packaging. This resulted in increasing investment in packaging technologies and machinery in the market. For instance, as per prime business Africa, from January to June 2022, the top four breweries in Nigeria which are Nigerian Breweries, Guinness Nigeria, International Breweries, and Champion Brew generated a combined NGN 599.11 billion (USD 1.37 billion).
• Moreover, the growing e-commerce industry, owing to the youth population, consumer spending, and growing technology penetration, is expected to generate the demand for packaging solutions in the country. For instance, in August 2022, Omnibiz, a Lagos-based asset-light retail distribution model e-commerce and retail platform that connect fast-moving consumer goods (FMCGs) manufacturers to retailers by digitizing the supply chain stakeholders raised USD 3 million to expand into new markets in Nigeria.
• The necessity of providing economical and sustainable packaging solutions across various end-user industries in the country offers opportunities for manufacturers to invest in packaging. For instance, in May 2021, Nigerian glass manufacturer Frigoglass started construction of a new furnace at its Beta Glass site located in Agbara, Ogun state in Nigeria 200t/day furnace with a 300t/day furnace. Also, the company is expanding Revimac NNPB-capable production lines from three to four lines with the new furnace. This technology will ensure that brands seeking a non-returnable glass offering can source lightweight glass bottles.
• The lack of availability of raw materials in the country is the key factor restraining the growth of the packaging market in Nigeria. According to the National Bureau of Statistics (NBS), Nigeria imported paper and its allied products worth NGN 296.696 billion (USD 670 million) between July and December 2021 which is highest in last six month.
• The COVID-19 pandemic accelerated online marketplace consumption growth and facilitated a notable shift in consumer habits. As a result, consumers are increasingly turning to e-commerce to purchase essentials such as groceries and medicines. These trends are expected to increase the country's demand for packaging solutions. Further, the Russia-Ukraine war has an impact on the overall packaging ecosystem.