+353-1-416-8900REST OF WORLD
+44-20-3973-8888REST OF WORLD
1-917-300-0470EAST COAST U.S
1-800-526-8630U.S. (TOLL FREE)

Kenya Flexible Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

  • PDF Icon


  • 129 Pages
  • April 2023
  • Region: Kenya
  • Mordor Intelligence
  • ID: 5764000
The Kenya Flexible Packaging Market is anticipated to record a CAGR of 3.6% over the forecast period. The key factor driving the growth of the flexible packaging market is the growing trend of consumers toward convenience products.

Key Highlights

  • Changing consumer tastes due to busy lifestyles and shrinking household units require easy products to open, store, use, transport, dispose of, and accommodate lifestyles on the go. The overall rise in the per capita income in Kenya has led to the increased consumption of packaged foods and FMCG products. This has had a direct positive effect on the rapid growth of the plastic packaging market in the country.
  • Flexible packaging combines the mechanical and physical properties of multiple layers of different polymers to balance functionality, environmental friendliness, and business considerations. They are characterized by durability and provide an ideal barrier against gases and moisture. Advanced convenience features and low cost minimize food waste and overall product spoilage. Such features of flexible packaging drive market growth in the country.
  • E-commerce in Kenya has developed significantly over the last few years, particularly among small and medium businesses. Technological innovation, sustainability concerns, and more are the reasons for the remarkable growth of flexible packaging. The growing demand for customer-friendly packages and heightened product protection is expected to boost flexible packaging as a viable and cost-effective substitute.
  • Kenya has been attempting to focus on the plastic problem in the environment, which led to the government announcing the Plastic Bag Ban and the single-use plastic ban in national parks, beaches, forests, and conservation areas in June 2020. The increase in the government’s emphasis on managing plastic packaging waste appropriately through applying the exemption for plastic packaging for various products controls packaging production, limiting excess packaging in the market.
  • With the outbreak of COVID-19, flexible packaging manufacturers have been bombarded with a pool of issues that are anticipated to be only for the short -term. Some effects of lockdowns across the country include supply chain disruptions, lack of availability of raw materials used in the manufacturing process, labor shortages, and fluctuating prices. Further, the Russia-Ukraine war has an impact on the overall packaging ecosystem.

Kenya Flexible Packaging Market Trends

Food and Beverage Sectors to Register Strong Growth

  • The African region accounts for a significant and growing portion of worldwide food and feed imports. Despite the violence and political uncertainty hanging over parts of the region, the growing populations and rising incomes drive higher demand for primary food and feed grains, soybeans, cotton, and meats. However, in Kenya, growing demand and climate-constrained production potential have forced the region to rely increasingly on food imports, raising its trade profile.
  • With rising urbanization, increased income, and the government's push for diversification in manufacturing and services, Kenya is increasingly importing more agricultural products and food. Food processing is one of the government's focused development and business initiatives, supporting the industry's steady growth in the last several years. The growth of the food processing sector offers opportunities for flexible packaging manufacturers.
  • Kenya is a progressing middle-income nation that acts as the financial, economic, and transport hub of East Africa. According to the USDA's (United States Department of Agriculture) data in 2022, Kenya's population demographic has a median age of 20 years, with 33.8% of the population between the ages of 25 and 54 years. Due to this, the country's demand for plastic packaging source materials has been rising, and the industry has also become competitive.
  • Organizations in the country are focused on innovating new flexible packaging solutions as part of their business expansion. For instance, Silafrica, one of the leading plastics packaging companies in Kenya and East Africa, offers sustainable packaging solutions to companies and SMEs in the food and beverage industry, as well as the agricultural sector, among others, to enable them to curb wastage during storage and transit, as well as allow for longer shelf life.
  • In Kenya, the staple foods market has grown significantly in the last few years. The growth in the market was driven by the retail volume and value sales of staple foods owing to more innovative products being introduced. For instance, to meet consumers' need for more affordable staple foods, producers focused on producing smaller pack sizes to cater to consumers in the lower income groups.

Bags and Pouches are Witnessing High Demand

  • Kenya is significantly dependent on imports of flexible packaging to fulfill the domestic packaging demand. Kenya imports both finished products as well as packaging materials. Domestic converters use packaging materials such as plastic and more to manufacture flexible packaging products such as bags, pouches, and more locally.
  • Kraft paper is used in paper bags/sacks for industrial materials such as chemicals and cement, multiwall sacks, flour and food bags at grocery stores, and paper bags. In February 2021, the Kenya Bureau of Standards (KEBS) approved new standards to guide businesses that sell packaged and wrapped products. These standards are expected to benefit manufacturers of food products, fast food outlets, and paper converters that use paper bags.
  • Pouches are used primarily in food and beverages end-user industries in Kenya. Several initiatives undertaken by the government are also helping pouch packaging in the country. Tea is a very important sector in the country. The Kenyan government has been looking to establish value addition industries as part of its Big Four agenda.
  • Several pouch packaging market players serve the Kenyan market. For instance, Flexipac is one of Kenya's leading flexible packaging companies that produce various innovative packaging solutions for domestic and international companies, including stand-up pouches. Flexipac offers complete packaging solutions and customized printed packaging for tea, oils, sugar, rice, confectionery, agro-vet, and related products.
  • Growing innovation has seen the emergence of papers and aluminum foils, replacing the current large-scale use of plastic for manufacturing pouches. Furthermore, Kenya is considerably increasing local production and investments from Asian and European countries.

Kenya Flexible Packaging Market Competitor Analysis

The Kenya Flexible Packaging Market is moderately consolidated with the presence of a few major players in the country. Some of the major players in the market are Ramco Plexus Ltd, Flexipac Limited, Silafrica Kenya Limited, Huhtamaki Flexible Packaging, and more. The players in the market are focusing on innovations, mergers, or acquisitions to enhance their brand presence in the country.
  • March 2022: Packaging Industries Limited achieved the Diamond Finalists Award from the 2021 Packaging Innovation Awards for its Mavuno Bora Hermetic Bag. With the adoption of Mavuno Bora hermetic bags, farmers can store their harvests for extended periods and utilize them during critical seasons rather than selling their yields instantly after harvests.
  • August 2021: Silafrica, one of the leading companies of plastic and packaging solutions for corporations, has partnered with the PETCO Ethiopia Recycling Community Organization. This non-profit organization represents the PET Value Chain, from Resin Producer to Retailer. One of the aspects of Silafrica's partnership is supporting people and communities throughout Kenya and other countries to protect the environment from PET products.

Additional benefits of purchasing the report:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

This product will be delivered within 2 business days.

Table of Contents

1.1 Study Assumptions and Market Definitions
1.2 Scope of the Study
4.1 Market Overview
4.2 Industry Attractiveness-Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers/Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Impact of COVID-19 on the Market
5.1 Market Drivers
5.1.1 Expanding Recycling Infrastructure for Packaging Products
5.1.2 Flexible Packaging is Expected to Register Strong Growth in the Food and Beverages Sector
5.2 Market Challenges
5.2.1 Government Restrictions on Using Single-use Plastic Products
6 Market Segmentation
6.1 By Material
6.1.1 Paper
6.1.2 Plastic
6.1.3 Metal
6.2 By Product Type
6.2.1 Bags and Pouches
6.2.2 Films and Wraps
6.2.3 Others
6.3 By End-User
6.3.1 Food
6.3.2 Beverage
6.3.3 Healthcare and Pharmaceutical
6.3.4 Others End-User Industries
7 Competitive Landscape
7.1 Company Profiles
7.1.1 Platinum Packaging Ltd
7.1.2 Flexipac Limited
7.1.3 Packaging Industries Ltd
7.1.4 Paperbags Ltd
7.1.5 Polyflex Industries Limited
7.1.6 Silafrica Kenya Limited
7.1.7 Huhtamaki Flexible Packaging Ltd.
7.1.8 Statpack Ltd
7.1.9 Dune Packaging Limited
7.1.10 Betatrad Kenya Limited
8 Investment Analysis9 Future of the Market

Companies Mentioned (Partial List)

A selection of companies mentioned in this report includes, but is not limited to:

  • Platinum Packaging Ltd
  • Flexipac Limited
  • Packaging Industries Ltd
  • Paperbags Ltd
  • Polyflex Industries Limited
  • Silafrica Kenya Limited
  • Huhtamaki Flexible Packaging Ltd.
  • Statpack Ltd
  • Dune Packaging Limited
  • Betatrad Kenya Limited