Despite its resources and reward potential, Nigeria’s packaging industry remains one of the most underdeveloped, hindering its ability to contribute to economic growth.
In addition to providing a lot of opportunities, the sector is expected to grow at a CAGR of approximately 8 per cent between 2021 and 2026, according to Market research.
According to the report, due to the increase in youth population, consumer spending, and increased technology penetration, the e-commerce industry is expected to grow, generating demand for packaging solutions and 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.
The 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.
Aside from being underexplored, the sector faces numerous challenges that hinder effective and efficient actions and poor research and development that inhibits accelerated growth.
Ahmed Omah, President of the African Packaging Organization, recently stated at a conference held in Lagos that Nigeria’s packaging and plastics industries have a lot to offer. Still, there are several issues to be addressed.
“The sector is bedevilled with various challenges such as infrastructure deficit, poor policy implementation and inability to continue established policies, among others which affect its productivity and competitiveness,” he said.
Omah said that 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 to improve activities while utilizing new practices developed in recent years,” he said.
Moreover, he noted that regulatory agencies and the government need to create a more enabling environment for this sector to flourish.
Mobola Aduloju, a consumer goods analyst, based in Lagos, said, as trends are changing and people are becoming more informed, packaging firms should adopt strategies that meet the needs of consumers, the environment, and businesses when designing affordable and flexible packaging.
“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.
In his view, Nigerian packaging firms trail behind global trends in terms of green packaging, innovative packaging, digital printing, and sensory packaging, which are environmentally friendly and more attractive to shoppers.
