Growth, Transformation, Competition: The Packaging Industry in Africa

Africa’s packaging markets are growing dynamically, yet they are as diverse as the continent itself. Daniel Dellemann, Project Manager for Market Analysis and International Markets at VDMA, puts current developments into context, discusses trends in sustainability and digitalization – and explains where international companies can find real opportunities and what it takes to successfully enter the market.

The packaging industry in Africa continues to grow dynamically. Over the past five years alone, exports of packaging machinery to the region have risen to around €1.5 billion in 2024, and based on European export figures, we expect further growth in 2025 as well.

However, this growth spans 54 highly heterogeneous markets. Countries with an established industrial base have a particularly strong demand for modern packaging technology. In 2024, Algeria overtook South Africa as the largest importing country, purchasing machinery worth €225 million. Although South Africa has fallen back due to various crises, demand there remains high. Large economies with rapidly growing populations, such as Egypt and Nigeria, are also driving demand. Morocco completes the top five of the largest importers. Overall, North African countries dominate the ranking, with Tunisia and Libya also ranking high.

From a German perspective, Algeria and Tanzania in particular have developed positively in recent years. In general, however, markets – especially in Sub-Saharan Africa – are volatile: during periods of economic and political stability, demand can grow quickly, but it can also decline just as rapidly.

Digitalization is a global issue and is also reaching African markets. Many companies, however, still operate in semi-automated environments. Labor is available and relatively inexpensive, while there is often a shortage of well-trained skilled workers. As a result, there is strong demand for robust, easy-to-operate machines. At the same time, there are producers who deliberately want to invest in state-of-the-art technologies. Therefore, the key takeaway is: every market and every customer is different – avoid making premature assumptions.

Sustainability is gaining importance. The biggest challenge remains the inadequate recycling infrastructure in many regions, which means that packaging waste is often not properly collected. At the same time, a growing middle class in many countries is placing greater value on quality and sustainable solutions, and export-oriented companies must comply with international requirements. In practice, however, raw material availability and costs are still usually the primary concerns.

In addition, there are market-specific developments. In Nigeria, for example, high inflation has led to smaller package sizes in recent years: many consumers only buy what they need for the day. Larger packages are more expensive and tend to target the middle and upper classes. Such changes have a significant impact on packaging trends and design.

The growth potential in Africa is enormous. According to Euromonitor, sales of packaged food in Sub-Saharan Africa are expected to increase by more than 20 percent by 2030. The packaging industry benefits directly from this development, and the opportunities for international companies are correspondingly diverse.

However, success requires patience and reliable local partnerships. Without a strong local partner, entering the market is hardly possible, as many markets are dynamic, complex, and require continuous on-the-ground presence.

Business relationships are often strongly based on trust. Cooperation in the form of training programs, technical support, or joint development projects is therefore essential. This is precisely where German companies, in particular, can differentiate themselves – through expertise, service quality, and long-term collaboration.