Market Trends of Nigeria Plastic Bottles Industry
Polyethylene (PE) Segment is Estimated to Record the Largest Market Share
- Derived from petroleum, polyethylene (PE) is a resilient and chemically resistant plastic, providing an economical packaging solution across various industries. Its inherent durability allows it to endure a range of environmental challenges. PE is primarily divided into three categories, namely high-density polyethylene (HDPE), low-density polyethylene (LDPE), and linear low-density polyethylene (LLDPE).
- In Nigeria, the surging demand for PE in producing plastic bottles, particularly in the beverage, cosmetics, and pharmaceutical industries, is propelling the market's expansion. HDPE and LDPE are increasingly favored for pharmaceutical packaging, including pharmacy bottles. Their appeal lies in attributes like durability, flexibility, robustness, nonreactivity at room temperature, and corrosion resistance, ensuring the protection of diverse medicines.
- Nigerian manufacturers are prioritizing HDPE for chemical packaging and industrial applications, capitalizing on its chemical resistance. The lightweight, cost-effective, and durable nature of HDPE, combined with its moldability into unique shapes, further fuels its market growth in Nigeria.
- As Nigeria's international trade flourishes, so does the demand for plastic packaging. Data from the National Bureau of Statistics (NBS) reveals a significant uptick in trade. As per the data, in 2023, exports surged from USD 4.08 billion in Q1 to USD 7.98 billion in Q4, while imports climbed from USD 3.50 billion to USD 8.87 billion over the same period.
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The Beverage Segment to Register Highest Market Share
- Nigeria's food and beverage industries have played pivotal roles in bolstering the nation's economic landscape. The beverage segment, in particular, is poised for growth, fueled by the rising popularity of non-alcoholic drinks such as energy drinks, juices, and carbonated soft drinks, especially among the youth.
- Nature News Africa, a prominent media outlet in Nigeria, highlights that the surging demand for potable water has catalyzed the bottled water market. With over 200 bottled water brands vying for attention, the demand for plastic bottles has surged. Furthermore, due to the government's inconsistent provision of drinkable water, per capita bottled water consumption skyrocketed from under 3 liters in 2011 to over 13 liters in 2022.
- Nigeria's burgeoning retail sector is bolstering beverage sales. Data from the USDA indicates that while online retailing is still in its infancy in Nigeria, urban youth are increasingly turning to mobile payments and delivery apps. This trend significantly boosts sales of non-alcoholic beverages, including juices and energy drinks.
- Nigerian manufacturers such as Bestaf Holdings, Panar Group, and Shan Packaging Limited are producing lightweight and durable PET, PE, and PP bottles tailored for beverages. These manufacturers also offer customization options, ensuring products stand out in the competitive Nigerian market.
- The USDA data reveals that in 2023, Nigeria imported both alcoholic and non-alcoholic beverages from the United States, further fueling market expansion. Notably, the country brought in wine and related products worth USD 4.7 million and dairy products valued at USD 2.15 million.
