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Plastic sub-sector to grow by 7% by 2025

By on May 7, 2015

The plastic subsector is expected to grow by seven percent over the next ten years, just as a positive outlook is projected for the packaging industry due to increased market demand and sophistication of the Nigerian consumers.

Also, imports of food processing and packaging machinery witnessed an increase of €331 million in 2013, compared to €198 million in 2010, Managing Director, Fairtrade, Mr. Martin Marz, said this at the just concluded Agrofood & Plastprintpack Nigeria 2015 exhibition in Lagos, saying that the figure represents 67 percent increase in the period under review.

Martin said that the Nigerian plastics and packaging sector has grown to over 3,000 companies and the industry is fairly developed and tends to mirror the trend in the local fast moving consumer goods industry.

He noted that flexible packaging and plastics packaging have become very popular in Nigeria. Raw materials employed in the packaging subsector are mostly imported. “Growth in the plastic and packaging sector has been driven by the increasing sophistication of the Nigerian middle class.”
Meanwhile, within the period, imports of packaging machinery and equipment have gone up from €86 million to €182 million at 116 percent, while imports of plastics machinery grew by 71 percent from €52 million to €89 million.

Marz added that the food and beverage sector of the Nigeria economy contribute about 4.6 percent of its GDP not less than 66 percent of total consumer expenditure. Food and beverage sector is the largest segment of the Nigerian manufacturing industry compriisng 22 percent, “its is estimated at €16 billion in aggregate output.

 

[Vanguard]