Market Trends of Nigeria Flexible Packaging Industry
This section covers the major market trends shaping the Nigeria Flexible Packaging Market according to our research experts:
Growing E-commerce Industry Driving Market Growth
- Nigeria's e-commerce industry is expanding due to rising urbanization and consumer spending, as well as the emergence of several startups in the country. The country's expanding e-commerce industry is expected to increase demand for flexible packaging solutions.
- Furthermore, due to the COVID-19 pandemic, consumers increasingly turn to e-commerce to purchase necessities such as groceries and medicines. These trends are expected to increase the country's demand for packaging solutions. Jumia Food Deliveries, a Nigerian ride-hailing company, is strengthening its e-commerce and food delivery business with an app to attract consumers.
- According to the National Communication Commission (NCC), most internet users are shoppers, and mobile network coverage is currently estimated at 77%. In Nigeria, 89% of internet users purchase online, with another 24 % planning to do so in the near future.
- Moreover, the e-commerce platforms are expanding their presence with the formation of partnerships in the country. For instance, in April 2022, Rabat - 4PX, a Chinese logistics firm, struck a partnership deal with Africa's leading e-commerce platform Jumia to expand their joint pool of customers on the African continent. The two logistics companies plan to start operations in Nigeria before expanding to Kenya, Egypt, and Morocco, under the new partnership.
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Food Industry to Add Growth to the Market
- The food industry in Nigeria is growing rapidly, with the rising population creating a demand for a large amount of food. According to the Association of Fast-Food Confectioners of Nigeria (AFFCON), Nigeria's fast-food industry was valued at NGN 250 billion (USD 602.5 million) in 2021. It is growing at a 10% annual rate in recent years. On the other hand, the Consumption Expenditure Pattern (CEP) published by the National Bureau of Statistics shows that an average Nigerian spends about 55% of their income on food items.
- Furthermore, for the investment in the agrifood tech startup, Nigeria secured first preference from the startup companies in the African region. According to the 2022 Africa AgriFoodTech Investment Report by AgFunder, in collaboration with the Dutch Entrepreneurial Development Bank, FMO, and British International Investment, Nigeria snagged 150 investment deals in 2021.
- Such a growing number of agrifood startups in Nigeria is expected to provide several growth prospects to companies in the flexible packaging vendors to provide economical and sustainable packaging solutions across sectors in the country. In addition, Nigerian small business entrepreneurs have increasingly begun processing and packaging shelf-stable foods creating a need for flexible packaging solutions.
