Demography and the growth of retail chains are driving the growth of Nigeria’s packaging industry, analysts say.
Nigeria’s packaging market is expected to nearly double within five years, also lifted by rising demand across food and consumer goods.
Ayodele Abioye, managing director of BUA Foods, in Propak West Africa presentation in Lagos, cited a market intelligence company, Smithers, as saying that the global packaging market is expected to reach $1.42 trillion between 2028 and 2032, from $1.17 trillion in 2023/24.
“Demand is very strong. The population is rising,” said Anthony Osunde, who oversees sales at Krones. “Nigeria will have 400 million people by 2050. You have to keep up. As the population is rising, there’s no way you won’t need more heads to drink. That’s a big driver for our business.”
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In terms of growth, Africa’s packaging market is projected to grow at a compound annual growth rate (CAGR) of around 3.85 percent to 4.63 percent between 2025 and 2030, according to Modor Intelligence.
West Africa’s packaging sector is already expanding at 8 percent to 10 percent annually, driven by robust demand across key sectors, reported Jai Prakash, who runs ALL Time Packaging, supplying film rolls and wrappers for bakery products out of Ogun State.
He said automation could help Nigerian manufacturers to cut costs, improve efficiency, and raise quality to international trade standards.
Rajendra Desai, head of projects at Jagmohan, exporters of packaging machines, flew in from India to market his equipment. He had already sold the $28,000 12-foot engine he was sitting beside, churning out plastic plates and keg covers, and was seeking to close more deals.
Nigeria has a robust market for the packaging industry. The growth of retail chains such as Shoprite, Grocery Bazzar, Boku Mart, among others, has fuelled demand, while the country’s growing continues to drive the traction. However, weaker consumer demand remains a drag on the sector are hurting the industry.
The naira depreciation is a major issue, as several inputs used in the production of packaging materials are imported.
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However, George Pearson, regional director, Montgomery Group, is optimistic. He said Nigeria’s packaging industry is estimated at $2.5 billion and will grow by about five percent year-on-year.
“It is inspiring to see that many factories now procure over 50 percent of their inputs locally. This shortens supply chains, improves control over specifications, and significantly boosts compliance with international standards – a critical step for competing on the global stage,” he said.
“The opportunity is not just to meet standards, but to set them. The opportunity is for West Africa to become a leading supplier of quality, sustainable packaging for the entire region.”
