Multinational brands are increasingly drawn by national initiatives in the region to promote economic growth and develop infrastructure. Nigeria is pinpointed at the most dynamic market, with flexible packaging demand up by about 12% per year over the past five years. But smaller markets such as Tanzania and the UAE have also seen above average growth.
Five countries – South Africa, Nigeria, Iran, Egypt and Saudi Arabia – currently account for more than half of the region’s total consumption.
Leading European and American owned multinational converters have virtually no local production capability in the region, according to the report.
Substantial intra-regional trade includes the use by Saudi and UAE converters of films produced as part of their country’s downstream petrochemical diversification.
Also Indian entrepreneurs have successfully established thriving converting operations in Nigeria and the UAE.
The region’s flexible packaging industry remains very fragmented. Of over 350 converters identified by PCI, the top 20 players account for only around 40% of production.