Nigeria’s Packaging industry is expected to grow at a Compound Annual Growth Rate (CAGR) of approximately 8 percent between 2021 and 2026 thus providing a lot of opportunities, according to Market research, a provider of industry intelligence.
According businessday.ng, despite its resources and reward potential inherent in the sector, it remains one of the most underexplored sectors.
This has limited its chances of contributing to economic growth.
The report adds that the growing e-commerce industry, owing to the increase in the youth population, increasing consumer spending, and increasing technology penetration is expected to generate the demand for packaging solutions in the country as well as investments from companies.
“The Nigerian Packaging Industry attracts investments as it provides several growth prospects to the companies in the packaging industry to provide economical and sustainable packaging solutions across sectors in the country,” it stated.
Growth of the e-commerce industry is also expected to boost packaging activities especially as it continues to attract investments due to the increase of several end-user industries, such as the food processing industry, cosmetics and household care, etc.
Other than being underexplored, players in the sector suffer numerous challenges which serve as barriers to effective and efficient actions, furthermore poor application of research and development limits accelerated growth.
Ahmed Omah, President, African Packaging Organization said at a conference recently held in Lagos that Nigeria’s packaging and plastics industries has huge opportunities to offer but a number of issues need to be addressed.
“The sector is bedeviled with various challenges such as infrastructure deficit, poor policy implementation and inability to continue established policies, among others which affects its productivity and competitiveness,” he said.
Omah said as companies and brands position to tap optimize the industry, they are expected to adopt innovative and sustainable practices suitable for businesses and consumers and beneficial to the environment.
“Players in the packaging industry must partner with other stakeholders locally and internationally in order to improve activities while utilizing new practices developed in recent years,” he said.
He added that the government and regulatory agencies need to provide a more enabling environment for the sector to thrive
Mobola Aduloju, Lagos-based consumer goods analyst said, as trends are changing and people are beginning to get more informed, hence packaging firms need to adopt strategies that are suitable for consumers, the environment and business when providing affordable and flexible packaging for products.
“Enhancing activities in the packaging industry requires investments in raw materials, optimizing innovation and improvising to upscale, improved logistics while protecting the environment,” he said.
He mentioned that most packaging firms in Nigeria lag behind in following global trends such as the use of green and smart packaging, digital printing and sensory packaging, which are more attractive to shoppers and environmentally sustainable.