Nigeria Plastic Packaging Films - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

Nigeria Plastic Packaging Films - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The Nigeria Plastic Packaging Films Market size is estimated at 0.47 Million tonnes in 2024, and is expected to reach 0.59 Million tonnes by 2029, growing at a CAGR of 4.65% during the forecast period (2024-2029).

Key Highlights

• Nigeria's substantial investment in food and packaging technology and its focus on leveraging innovative solutions for retaining the freshness of cold food products can significantly contribute to the growth of its plastic packaging films. As Nigeria modernizes its food industry and focuses on reducing food waste, there will be a growing demand for high-quality, innovative plastic packaging films. Film packaging plays a crucial role in extending the shelf life of perishable products, preserving their freshness, and safeguarding them during transportation.
• Italy’s commitment to bolstering trade with Nigeria signifies a mutual interest in expanding economic cooperation. In April 2023, Italy announced the expansion of its current USD 2.4 billion trade cooperation with Nigeria at the West African Cold Chain Summit and Exhibition in Lagos.

Key Highlights

• According to data from the Germany Machinery Association, Nigeria’s emergence as the largest investor in food and packaging technology in Africa, with a substantial investment of EUR 346 million (USD 375.5 million) in 2023, reflects its commitment to modernizing its food industry.
• By leveraging innovative food packaging solutions, Nigeria’s investment in food packaging technology could create more solutions to retain the freshness of cold food products, thereby reducing food waste and meeting the demand for fresher goods in international markets.
• According to a recent US Agency for International Development study, Nigeria ranks among the world's leading contributors to plastic pollution, producing more than 2.5 million tonnes of plastic waste yearly. Over, more than 70% of this waste enters oceans and landfills.

Key Highlights

• The alarming statistics on plastic waste generation and disposal in Nigeria intensify global and local scrutiny of plastic usage and its environmental impact. This scrutiny often translates into stricter regulations and policies to reduce plastic pollution. Such laws may limit plastic packaging film production, sale, or use, affecting market demand and operations.

Nigeria Plastic Packaging Films Market Trends

Polyethylene is Expected to Witness Significant Growth

• Nigeria's significant consumption of primary plastics (resins) provides a solid foundation for the growth of the polyethylene packaging film market. With a robust plastic manufacturing sector, there is a steady and accessible supply of primary plastics such as polyethylene resins. These resins serve as the primary raw material for manufacturing polyethylene packaging films. A stable supply chain of raw materials is essential for consistently producing packaging films.
• In June 2024, Nigeria made headlines by banning single-use plastics within government offices. This ban is a precursor to a nationwide sweeping prohibition slated to take effect in January 2025, a decision poised to impact a nation heavily reliant on plastic consumption significantly.
• The ban is anticipated to raise awareness about environmental concerns associated with single-use plastics. This could shift consumer behavior towards more sustainable packaging options, including reusable and recyclable polyethylene packaging films. Manufacturers can respond by diversifying their product offerings to meet these changing preferences.
• According to an article published by the World Trade Organization in October 2023, the export of goods accounted for USD 63.07 billion in 2022, an increase of USD 46.87 billion from 2021. With higher export volumes, an increased demand is highly anticipated for packaging materials like polyethylene packaging films. These films protect goods during transportation and storage, especially for exports.

Food to Show Significant Growth

• • In July 2024, the launch by the Federal Government of Nigeria of a 180-day plan to lower food prices, which includes initiatives like duty-free imports and strategic agriculture measures, can significantly impact the market.
• With the government's focus on boosting agricultural output, there may be a surge in the volume of food products entering the market. This increased volume will directly translate into higher demand for plastic packaging films, as more packaging materials will be needed to accommodate the larger quantities of food being produced and distributed.
• According to the World Food Programme, with over 220 million people, Nigeria is the most populated country in Africa and the sixth in the world. However, around 84 million Nigerians, representing about 37% of the total population, live below the poverty line.
• Despite poverty, Nigeria's large population still represents a substantial consumer base. Basic necessities like food and beverage products require packaging for distribution and sale. Plastic packaging films are crucial in maintaining the integrity and hygiene of these products, thereby ensuring their affordability and accessibility to a wider population.
• In September 2023, Nigeria's consumer food price index, as reported by the National Bureau of Statistics, rose to 737.3, marking an increase from the previous year. With higher food prices, consumers and retailers alike will prioritize minimizing food wastage. Plastic packaging films help in preserving food by protecting it from spoilage, moisture, and contaminants. This increased emphasis on food preservation can boost the demand for plastic packaging films.

Nigeria Plastic Packaging Films Industry Overview

The Nigeria Plastic Film Packaging Market is a consolidated landscape with few manufacturers dominating it. Players in this market often adopt key strategies such as product launches, collaboration, and partnerships to enhance their market presence and ensure sustainability. These strategies allow them to expand their operational capabilities, access new markets, and strengthen their competitive edge.

• May 2024: UFlex, a flexible packaging manufacturer with operations in Nigeria, launched its offerings in the final quarter of FY24. The company introduced new products specifically designed for both labels and flexible packaging. UFlex's packaging films division notably rolled out the 'B-UUB-M' Outstanding Barrier Metallized BOPP Film. This innovative film is crafted to cater to various products, including dry fruits, beverages, chips, snacks, biscuits, cookies, confectionery, and chocolate items.
• August 2023: UFlex launched innovative and sustainable products. The Uflex Packaging Films division made waves with the introduction of the F-PSX, a high-barrier transparent BOPET film. The F-PSX boasts a protective printable layer, a high-barrier vacuum deposit on one side, and a surface that can be primer-coated.

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