Kenya: A Nation Rich In Packaging Opportunities

Posted on : Monday , 11th March 2024

The industry is expected to increase at a compound annual growth rate (CAGR) of roughly 4.8 percent between 2021 and 2026, indicating that it will adapt to changing market conditions. Although it is still difficult to obtain national figures, there is a wealth of information about important areas of Kenya's packaging sector, such as market trends, new prospects and successful business plans.  

 

Kenya, one of the most industrialised nations in East Africa, has a diversified economy with a large part of the forestry, fisheries and agriculture sectors, accounting for over 22% of the total GDP. With packaging accounting for an estimated 2 percent of the GDP, the manufacturing sector, which ranks second, contributes almost 11 percent of the GDP. Food and drink, pharmaceuticals and healthcare, cosmetics and personal hygiene are all supported by the packaging subsector.

 

As the nation becomes more industrialized and populous, packaging for FMCG—fast-moving consumer goods—becomes a major field of study. Kenya's mass market or "kadogo" economy, is a substantial growing industry driven by the need for reduced packaging for single-use items. Families that depend on their daily paychecks prioritise getting one meal at a time, which raises the demand for packaged foods across a broad spectrum of fast-moving consumer goods.

 

It is interesting that in 2017, Kenya outlawed single-use plastic carrying bags. The restriction only applied to lightweight carrier bags with a thickness of less than 30 microns; however, materials used in bread packaging, disposable bags for managing hazardous and biomedical waste, and industrial main packaging were exempt. Because of their cost, convenience, and adaptability, plastic bag carriers are still readily available to traders, including food sellers, small shops, and wholesalers, especially in the informal market sector. This offers Kenyans a chance to use several packing options.