Ethiopia’s plastics, printing and packaging sector has exponentially grown over decades.Without a doubt growth in the sector closely relates to that of the FMCG industry which has seen a noticeable expansion in demand for packaged goods.
This has brought the economy to a two-digit compound annual growth rate for packaging producers which is expected to only rise further. Ethiopia is now known as the next global manufacturing hub. The very size of Ethiopia’s market combined with its large and young work force will attract massive investments in the manufacturing industry. Machines and production materials will continue to be imported, though.
The packaging industry in Ethiopia is quite developed and tends to match with the trend in the local fast moving consumer goods (FMCG) industry. Usually materials used in packaging products are plastics (flexible & rigid), glass, cartons, aluminum, caps, corks etc. The most commonly used material is plastic.
Manufacturers are heavily reliant on the upstream petrochemical sector as well as imports for raw material. This is attracting new players and inviting positive business opportunities to the market.
A positive outlook is projected for the packaging industry due to increased market demand and updating technological know-how of the Ethiopian consumers.
The Ethiopian plastics and packaging sector is now increasingly sophisticated with new technologies added to the market.