Market Info
Africa stands out in its sheer size and diversity of the market across 54 countries with an average annual growth close to 5%. With a population of 1.2 billion, Africa presents a BIG BONANZA for consumer-facing industries, which includes paper industry across its different verticals, stretching from tissue papers on the hygiene front to packaging to corrugated paperboards, among others.
Unfolding markets worth $400 billion… Surging 303 million Middle Class
Africa presents a powerhouse of consumer and industrial growth with the world’s youngest population. 53 % of the population is in the age group of 16-34, guaranteeing a long-term market and as estimated by McKinsey, a $400 billion opportunity in the next 10 years. By 2025, nearly 303 million African households will have discretionary income, 90 million consumers will be added to the market in a decade’s time
Nairobi-East Africa’s business hub!
Africa presents a powerhouse of consumer and industrial growth with the world’s youngest population. 53 % of the population is in the age group of 16-34, guaranteeing a long-term market and as estimated by McKinsey, a $400 billion opportunity in the next 10 years. By 2025, nearly 303 million African households will have discretionary income, 90 million consumers will be added to the market in a decade’s time
Why Africa ?
Africa stands out in its sheer size and diversity of the market across 54 countries with an average annual growth close to 5 per cent. For investors, business owners – local and foreign – the rapid population growth in Africa is poised to be a significant driver for consumer growth. From its current population of 1.2 billion, Africa is expected to become the most densely populated continent in two decades, surpassing the population of China and India. This presents a big bonanza for consumer-facing industries, which includes paper industry across its different verticals, stretching from tissue papers on the hygiene front to packaging to corrugated paperboards, among others.
Industry Powerhouse
Africa presents a powerhouse of consumer and industrial growth with the world’s youngest population in the world – 53 per cent of the population is in the age group of 16-34, guaranteeing a long-term market, estimated by McKinsey, at $400 billion in the next 10 years,
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AFRICA IS
THE FUTURE
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It is estimated that the working population of Africa is growing at 2.7 per cent a year, which is fastest than the 1.3 per cent in Latin America and 1.2 per cent in South East Asia, for instance. It is also estimated that by 2025, nearly 303 million of African households will have discretionary income and 90 million consumers will be added in the next ten years which could fuel the Continent’s GDP growth to 6.2 per cent, outpacing the global growth rate of 3.7 per cent.
East Africa
The economic reforms East African Community (EAC) countries with focus on encouraging the private sector has positively impacted on the business and investment climate, in turn aiding paper industry growth. Privatization programmes had been rolled out in many of the EAC countries, particularly in the six critical countries of Kenya, Rwanda, Tanzania, Uganda, Burundi and Ethiopia. Over the past decade East Africa is the fastest growing region in Africa, and the Continent’s most dynamic trade blocks. Kenya has a robust presence in the paper industry of Africa with a bevy of top-tier companies with manufacturing expertise spanning from tissue papers, paper recyclers, and pulp products to packaging products.
$1.8 Trillion Global Market
The global paper products market, according to various estimates, is to touch $1.8 trillion by 2027 from $1.5 trillion in 20020, growing at a CAGR of 3 per cent. The COVID-19 pandemic leading to acute hygiene focus, coupled with rising concern over sustainability, have ensured increasing demand for paper products in the packaging industry. Plastic is on its way out. Industries such as FMCG, pharmaceutical, food, hospitality and other consumer goods, are going for paper packaging, adding to the industry’s growth. In Middle East and Africa, pulp and paper market is estimated to reach a CAGR of 3.2 per cent during 2021-2026. The pandemic, has increased the demand for corrugated boxes and paper packaging in the Middle East and Africa region. This surge is also catalyzed by rising e-commerce trend across the region. Many African countries have banned or are in the process of banning plastic, which will also be a major driver for paper packaging industry.