Kenya Flexible Packaging Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 2.14 Billion |
| Market Size (2029) | USD 2.41 Billion |
| CAGR (2024 - 2029) | 2.38 % |
| Market Concentration | High |
Major Players.webp)
*Disclaimer: Major Players sorted in no particular order |
Kenya Flexible Packaging Market Analysis
The Kenya Flexible Packaging Market size is estimated at USD 2.14 billion in 2024, and is expected to reach USD 2.41 billion by 2029, growing at a CAGR of 2.38% during the forecast period (2024-2029).
Flexible packaging is a versatile and customizable form that adapts to diverse shapes and sizes. It is a cornerstone in the packaging sector, delivering benefits like adaptability, lightness, and prolonged product shelf life.
- According to the United States Department of Agriculture (USDA), in 2023, Kenya witnessed a surge in consumer-oriented food imports, driven by a notable shift in preferences toward convenience, variety, and international cuisines. With a rapidly growing population and an expanding middle class, Kenya's food service and retail sectors are flourishing, presenting lucrative opportunities for US exporters and subsequently boosting the demand for packaging within the country.
- The growing demand for flexible packaging solutions such as bags, pouches, and wraps for the food and beverage industry in Kenya is attributable to the growing population, evolving tastes of consumers, and increased consumer spending due to rising incomes. According to data from the Kenya National Bureau of Statistics (KNBS), Kenya's GDP expanded by 5% in Q1 2024 compared to Q1 2023, boosting the country's overall economic growth.
- Flexible packaging combines the mechanical and physical properties of multiple layers of different polymers to balance functionality, environmental friendliness, and business considerations. They are characterized by durability and provide an ideal barrier against gases and moisture. Advanced convenience features and low cost minimize food waste and overall product spoilage. Such features of flexible packaging are driving the market’s growth.
- E-commerce in Kenya has developed significantly over the last few years, particularly among small and medium businesses. According to data from the International Trade Administration, Kenya is the third largest E-commerce market in Africa after South Africa and Nigeria. In 2024, the e-commerce market in Kenya is forecasted to hit a revenue milestone of USD 900 million, driven by an anticipated user base of 12.26 million. The growth in the online market in Kenya is estimated to drive the country's demand for flexible packaging.
- The market also faces challenges due to the fluctuating prices of raw materials such as plastic and paper. These price fluctuations, influenced by supply and demand dynamics and economic crises, pose significant hurdles to market expansion.
Kenya Flexible Packaging Market Trends
Food and Beverage Sectors to Register Strong Growth
- Kenya stands as East Africa's economic powerhouse, boasting a robust financial sector and a well-established logistics network, solidifying its position as a regional hub. Despite the violence and political uncertainty hanging over parts of the region, the growing populations and rising incomes drive higher demand for primary food and feed grains, soybeans, cotton, and meats. However, in Kenya, growing demand and climate-constrained production potential have forced the region to rely increasingly on food imports, raising its trade profile.
- With rising urbanization, increased income, and the government's push for diversification in manufacturing and services, Kenya is increasingly importing more agricultural products and food. Kenya has an expanding modern food retail sector, food service sector, and food processing sector. In addition, an upsurge in Kenya's middle-class dining habits is fueling the expansion of fast-food joints, restaurants, and coffee shops, consequently boosting the need for adaptable packaging such as takeaway bags and pouches.
- Kenya is a progressing middle-income nation that acts as the financial, economic, and transport hub of East Africa. According to the USDA's (United States Department of Agriculture) data in 2023, Kenya has the largest and most rapidly expanding consumer market for high-value, consumer-oriented foods, driven primarily by its surging urban population. The World Bank reports that Kenya's urban populace is expanding at an impressive annual rate of 3.7%, significantly outpacing the global average of 1.9%. Due to this, the country's demand for plastic packaging source materials has been rising, and the industry has also become competitive.
- As part of their business expansion, manufacturers in the country are prioritizing the innovation of new flexible packaging solutions. For instance, Silafrica, a leading plastics packaging company in Kenya and East Africa, provides sustainable packaging solutions. Their clientele spans companies and SMEs in the food and beverage industry, the agricultural sector, and more. These solutions help curb wastage during storage and transit and extend the products' shelf life.
- Kenya's burgeoning domestic export value of food and beverage products is a significant driver of the industry's growth. Data from the Kenya National Bureau of Statistics and the Kenya Revenue Authority reveals that Kenya's food and beverage exports were valued at USD 278.42 million in January 2024, rising to USD 307.85 million by March 2024.
Bags and Pouches to Hold Largest Market Share
- Kenya heavily relies on imports to meet its domestic demand for flexible packaging. The country imports not only finished packaging products but also raw materials. Local converters in Kenya utilize materials like plastic to produce various flexible packaging items, including bags and pouches.
- Pouches are extensively used in sectors such as food and beverage, cosmetics, pharmaceuticals, baby food, and energy drinks in Kenya. This widespread usage, combined with a rising preference for convenient packaging, especially among small and medium enterprises, positions Kenya's packaging market for significant growth.
- The increasing appetite for ready-to-eat (RTE) foods and packaged beverages, along with the affordability and convenience of pouches, are primary drivers of this market expansion. The demand for re-closable stand-up pouches has notably surged, especially with the rising trend of on-the-go snacks. In addition, shifts in consumer lifestyles, evolving dietary preferences, and advancements in food technology have further strengthened this market trajectory.
- Numerous players are active in Kenya's pouch packaging landscape. For example, Flexipac Limited caters to the pharmaceutical, cosmetics, and food and beverage sectors, producing films and wraps in various sizes tailored to consumer needs. They also offer pouches and bags equipped with zippers and spouts for added convenience. Moreover, Kenya is witnessing a notable uptick in local production, bolstered by investments from Asian and European nations, driving up product demand.
- Kenya stands out as a significant exporter of plastic packaging products, contributing to the market's robust growth. Data from the International Trade Centre (ITC) highlights a rise in Kenya's export value of plastic packaging products, climbing from USD 52.20 million in 2021 to USD 62.25 million in 2023. The primary export destinations are Uganda and Tanzania.
Kenya Flexible Packaging Industry Overview
The flexible packaging market in Kenya is consolidated. A handful of key players dominate it, including Ramco Plexus Ltd, Flexipac Limited, Silafrica Kenya Limited, and Huhtamaki Flexible Packaging. These companies prioritize innovations, participate in trade expos, and pursue mergers and acquisitions to bolster their presence in Kenya.
For instance, in November 2023, Huhtamaki Oyj, a Finland-based company with operations in Kenya, along with Emerald Technology Ventures, spearheaded a workshop titled "The Future of Packaging" in Finland at Slush 2023, an event tailored for burgeoning companies. The event drew participation from over 100 companies globally, aligning with Huhtamaki's commitment to sustainable packaging.
Kenya Flexible Packaging Market Leaders
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Ramco Plexus Ltd.
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Flexipac Limited
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Silafrica Kenya Limited
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Huhtamaki Flexible Packaging
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Polyflex Industries Limited
*Disclaimer: Major Players sorted in no particular order
Kenya Flexible Packaging Market News
- June 2024: Platinum Packaging Ltd, a Kenya-based packaging company, invested in two state-of-the-art Bobst Master M6 in-line flexo presses to streamline its production operations. By integrating these advanced presses with its current machinery, Platinum Packaging is poised to bolster its production capabilities and target the African market.
- April 2024: Nexgen Packaging, a US packaging company, inaugurated its African headquarters in Nairobi, Kenya. As Kenya becomes Nexgen's main production hub for the continent, it is likely to enhance the company's operations, which have already been established in Egypt and West Africa. This strategic move positions Kenya as the central distribution point for Nexgen's products throughout Africa.
Kenya Flexible Packaging Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Rising Demand for Flexible Packaging Solutions in Kenya
5.1.2 Growing E-Commerce Sector in the Country to Bolster Market Growth
5.2 Market Challenges
5.2.1 Fluctuating Raw Material Costs to Hamper Market Growth
6. INDUSTRY REGULATION, POLICIES, AND STANDARDS
7. MARKET SEGMENTATION
7.1 By Material
7.1.1 Paper
7.1.2 Plastic
7.1.3 Metal
7.2 By Product Type
7.2.1 Bags and Pouches
7.2.2 Films and Wraps
7.2.3 Other Products
7.3 By End-User
7.3.1 Food
7.3.2 Beverage
7.3.3 Healthcare and Pharmaceutical
7.3.4 Others End-User Industries
8. COMPETITIVE LANDSCAPE
8.1 Company Profiles*
8.1.1 Platinum Packaging Ltd
8.1.2 Flexipac Limited
8.1.3 Packaging Industries Ltd
8.1.4 Paperbags Ltd
8.1.5 Polyflex Industries Limited
8.1.6 Silafrica Kenya Limited
8.1.7 Huhtamaki Flexible Packaging Ltd
8.1.8 Statpack Ltd
8.1.9 Dune Packaging Limited
8.1.10 Betatrad Kenya Limited
9. INVESTMENT ANALYSIS
10. FUTURE OF THE MARKET
Kenya Flexible Packaging Industry Segmentation
The report tracks the consumption value of flexible packaging products in Kenya. The study defines the revenue generated from the sales of packaging products such as bags and pouches, as well as films and wraps. The analysis is based on the market insights captured through secondary research and primaries. The study also examines underlying growth influencers and significant industry vendors, all of which help to support market estimates and growth rates throughout the anticipated period. The market estimates and projections are based on the base year factors and arrived at top-down and bottom-up approaches.
The flexible packaging market in Kenya is segmented by material (paper, plastic, and metal), product type (bags and pouches, films and wraps, and other product types), and end-user industry (food, beverage, healthcare and pharmaceutical, retail, and other end-user industries). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Material | |
| Paper | |
| Plastic | |
| Metal |
| By Product Type | |
| Bags and Pouches | |
| Films and Wraps | |
| Other Products |
| By End-User | |
| Food | |
| Beverage | |
| Healthcare and Pharmaceutical | |
| Others End-User Industries |
Kenya Flexible Packaging Market Research FAQs
How big is the Kenya Flexible Packaging Market?
The Kenya Flexible Packaging Market size is expected to reach USD 2.14 billion in 2024 and grow at a CAGR of 2.38% to reach USD 2.41 billion by 2029.
What is the current Kenya Flexible Packaging Market size?
In 2024, the Kenya Flexible Packaging Market size is expected to reach USD 2.14 billion.
Who are the key players in Kenya Flexible Packaging Market?
Ramco Plexus Ltd., Flexipac Limited, Silafrica Kenya Limited, Huhtamaki Flexible Packaging and Polyflex Industries Limited are the major companies operating in the Kenya Flexible Packaging Market.
What years does this Kenya Flexible Packaging Market cover, and what was the market size in 2023?
In 2023, the Kenya Flexible Packaging Market size was estimated at USD 2.09 billion. The report covers the Kenya Flexible Packaging Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Kenya Flexible Packaging Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Kenya Flexible Packaging Industry Report
Statistics for the 2024 Kenya Flexible Packaging market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Kenya Flexible Packaging analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
