Market Trends of Nigeria Plastic Packaging Films Industry
Polyethylene is Expected to Witness Significant Growth
- Nigeria's significant consumption of primary plastics (resins) provides a solid foundation for the growth of the polyethylene packaging film market. With a robust plastic manufacturing sector, there is a steady and accessible supply of primary plastics such as polyethylene resins. These resins serve as the primary raw material for manufacturing polyethylene packaging films. A stable supply chain of raw materials is essential for consistently producing packaging films.
- In June 2024, Nigeria made headlines by banning single-use plastics within government offices. This ban is a precursor to a nationwide sweeping prohibition slated to take effect in January 2025, a decision poised to impact a nation heavily reliant on plastic consumption significantly.
- The ban is anticipated to raise awareness about environmental concerns associated with single-use plastics. This could shift consumer behavior towards more sustainable packaging options, including reusable and recyclable polyethylene packaging films. Manufacturers can respond by diversifying their product offerings to meet these changing preferences.
- According to an article published by the World Trade Organization in October 2023, the export of goods accounted for USD 63.07 billion in 2022, an increase of USD 46.87 billion from 2021. With higher export volumes, an increased demand is highly anticipated for packaging materials like polyethylene packaging films. These films protect goods during transportation and storage, especially for exports.
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Food to Show Significant Growth
- • In July 2024, the launch by the Federal Government of Nigeria of a 180-day plan to lower food prices, which includes initiatives like duty-free imports and strategic agriculture measures, can significantly impact the market.
- With the government's focus on boosting agricultural output, there may be a surge in the volume of food products entering the market. This increased volume will directly translate into higher demand for plastic packaging films, as more packaging materials will be needed to accommodate the larger quantities of food being produced and distributed.
- According to the World Food Programme, with over 220 million people, Nigeria is the most populated country in Africa and the sixth in the world. However, around 84 million Nigerians, representing about 37% of the total population, live below the poverty line.
- Despite poverty, Nigeria's large population still represents a substantial consumer base. Basic necessities like food and beverage products require packaging for distribution and sale. Plastic packaging films are crucial in maintaining the integrity and hygiene of these products, thereby ensuring their affordability and accessibility to a wider population.
- In September 2023, Nigeria's consumer food price index, as reported by the National Bureau of Statistics, rose to 737.3, marking an increase from the previous year. With higher food prices, consumers and retailers alike will prioritize minimizing food wastage. Plastic packaging films help in preserving food by protecting it from spoilage, moisture, and contaminants. This increased emphasis on food preservation can boost the demand for plastic packaging films.
