2015 IPSA National Packaging Congress
Sandton – South Africa
Nov. 3 - 4, 2015
2015 IPSA National Packaging Congress
o  Introduction
o  Why Most Businesses Are Vulnerable In Africa?
o  Why S-A Packaging Companies Want To Go To The Rest Of Africa?
o  Nigeria Country Profile
o  Overview Of The Nigeria Packaging Industries
o  Conclusion
2015 IPSA National Packaging Congress
2015 IPSA National Packaging Congress
‘ To Grow into a World Class Institute, offering Professionalism, Standards
and Economic value for Packaging Industries in Nigeria’
‘To Create excellence and Value For Packaging in Nigeria’
2015 IPSA National Packaging Congress
2015 IPSA National Packaging Congress
2015 IPSA National Packaging Congress
o  Starting for the wrong reasons
o  Not enough research
o  The wrong skill set and lack of knowledge
o  No access to networks
•  Africa GDP of $1.5 trillion is similar to that of Brazil, India, or Russia, and it’s
expected to grow faster than most non-BRIC emerging markets.
•  Africa middle class already accounts for one-third of the population.
•  In 2023 five major countries alone will have 56 million middle-class households
with disposable incomes totalling more than $680 billion.
•  Africa Growth opportunities are massive for companies that can tackle such
challenges as poor infrastructure and a talent shortage.
•  Africa is quickly attracting competitors.
•  Over 70% of the top 50 global consumer packaged goods makers are already
present in Africa
•  20% of this top 50, Africa already represents more than 5% of their global sales
o  Total population 178.5 million people (2014)
o  Nigeria is Africa’s most populous country,
o  Population growth (annual %) 2.79 in 2013.
o  The Gross Domestic Product (GDP) in Nigeria was worth
568.51 billion US dollars in 2014.
o  GDP 6.3% Q4 (2014)
o  The GDP value of Nigeria represents 0.92% of the world
economy.
o  Nigeria accounts for 65% of the West Africa GDP
Main import partners
•  China
•  United States
•  India
•  Belgium
•  Netherlands
22.5%
9.6%
7.7%
5.6%
5.4%
Exports: $93.01 billion (2014 est.)
Main export partners
•  India
•  Spain
•  Netherlands
•  South Africa
•  Brazil
14.1%
10.3%
10.3%
8.4%
5.1%
o  What are the key market trends?
o  What is driving this market?
o  What are the challenges to market growth?
o  What are the strengths and weaknesses?
o  What are the market opportunities and threats?
Transport
Sales
Logistics
End Product
Paper
Metal
Wood
Glass
Flexible
material
Infrastructure
Movement
Young
Population
Increased
Investment
Growth of
organized
Retail
Competitive
Base Materials
Rising
Middle Class
Plastics
Paper
Metal
o  Well diversified and versatile
o  It is a service industry that derives its existence from the demands of
the goods manufacturers.
o  The printing and the conversion sub-sector is the most vibrant and
visible.
o  The sub-sector’s activities vary from the simplest manual screen
printing process to the most sophisticated multi-colour gravure presses.
o  Most origination works are handled locally. These include artwork
preparation, photo illustration, Colour separations and gravure cylinder
engraving/etching.
o  Generally, the packaging industry is capable of meeting most of the
demands of the Nigerian manufacturers in quality and quantity.
SWOT analysis of the Nigerian packaging industry
•  Weaknesses
•  Strengths
•  Opportunities
S
W
O
T
•  Threat
o  Converters meet the local demand for packaging
articles but depend excessively on imports of raw
materials and machinery
o  Practically all paper, paperboard, plastic, tin and
aluminium packaging raw materials are imported.
o  Only packaging glass is locally sourced
o  Import duties/tariff are low for packaging raw material
0- 25% of CIF value
•  “Decide where to invest and Expand”
•  “Merger & acquisition, Partnering for
position and Profit”
•  “Decide on categories, Products or brand
to sell in the rest of Africa”