Nigeria’s plastic recycling market forecast to garner $3.47 million by 2030
By Felicia Nwosu
The Nigerian plastic recycling market analysis report has estimated that its outlook will garner 3.47 million tonnes growth by 2030, while growing at a healthy CAGR of 4.82%. According to Market Research.com, the analysis also showed that the plastic recycling market stood at 2.04 million tonnes in 2020.
Rapid urbanization, industrialization, technological advancement, and change in consumption patterns were attributed as some of the factors that influenced the huge amount of plastic waste. Also, other propellers such as increasing demand for packaging, electrical & electronics, automotive industries equally contributed to the consumption of plastics in Nigeria.
From the economical point of view, the research body said that per capita consumption of plastic in Nigeria grew by 4.81% in the 2010-2020 periods, from 6.5kg in 2017, and was estimated to be 7.4 kg in 2020. It added that the growing need to reduce carbon footprint due to excessive use of plastics has forced the government to come up with various initiatives supporting the plastic recycling market.
A separate report by Mordor Intelligence, regarding 2023 Nigeria plastic recycling market share size and revenue growth recorded that the growth of e-commerce industry is hugely responsible for driving packaging activities. It acknowledged that such factors became strong catalysts in attracting investments due to the increase of several end-user industries such as food processing, cosmetics, household care and many others.
The research hub in its observation affirmed that the positive shift recorded in the food retail segment could also have influenced the demand for flexible packaging.
It cited the United States Department of Agriculture, which revealed that the retail food industry in Nigeria was anticipated to exceed USD20 billion by 2022, accounting for 16.4% of Nigeria’s GDP. The report further posited that many consumers are gradually shifting towards supermarkets and convenience stores, stimulating market growth.
Mordor Intelligence equally attested to the fact that Nigeria’s food service sector has witnessed tremendous growth amidst some confrontational challenges such as the unprecedented disruption caused by the COVID-19 pandemic.
These growths were attributed to the influx of both local and international franchises operating in major cities across the country and the vast consumer base with an increasingly youthful and urban population which represent growth opportunities in the market. The report, however, blamed lack of availability of raw materials and increasing raw material prices as some of the constraints restricting the expansion of the flexible packaging market in Nigeria.
The research site was able to identify several international players as key participants who, despite the challenges, have expanded their operations in the country with plans to also expand their consumer base. It reaffirmed the fact that Nigeria’s flexible packaging market is fragmented in nature owing to the presence of several players operating in the market holding considerable shares. These players, according to the report, perform activities such as mergers, acquisitions, capacity expansion, product innovations, etc., to remain competitive in the market and hold a significant market share. PrimePak Industries Nigeria Ltd, Victor Oscar Company, Quantum Plastic Nigeria Ltd, Flexipack Plastics Ltd, and Tempo Paper Pulp & Packaging Ltd were some of the named key market players.
In the same vein, the National Bureau of Statistics (NBS), said manufacturing investment in Nigeria surged 157.4% to NGN 305.02 billion in 2021 from NGN 118.51 billion in 2020, signaling a recovery in the sector. The NBS said growth in the manufacturing activities in the country is positively impacting the flexible packaging market in from various end-user industries. It added that the Russia-United Kingdom-Ukraine war has impacted on the overall packaging ecosystem.
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