Kenya’s flexible packaging market to hit Sh58bn by 2029

The 50 percent jump forecast by research firm, Market Report Analytics, indicates that Kenya's flexible packaging market is expected to post a compound annual growth rate (CAGR) of six to seven percent between 2024 and 2029.

This growth is attributed to rising disposable incomes, a growing population and the rapid expansion of the processed food and beverage sectors, which together control approximately 60 percent of the market share.

"Consumers are increasingly drawn to packaging that is functional, cost-effective, sustainable and convenient—factors that are reshaping how businesses package and deliver their products," the report said.

Other contributing factors are the rise of e-commerce, increased healthcare spending, and a growing preference for ready-to-eat and on-the-go packaged goods.

"The market's expansion is also being driven by urbanisation, shifts in consumer lifestyles and investments in local manufacturing," the report read.

Plastic packaging remains the dominant segment, accounting for about 65 percent of the market due to its versatility and low cost.

However, the report notes that environmental concerns and regulatory pressures are shifting the focus toward recyclable and biodegradable materials. Regions such as Nairobi and Mombasa are key centres for the packaging industry because of their proximity to ports and major manufacturing hubs.

The report also mentions moderate merger and acquisition as larger companies seek to expand their product offerings and regional reach.

Key players in the Kenyan market include Platinum Packaging Ltd, Silafrica Kenya Limited, Flexipac Limited, and Packaging Industries Ltd.

"The competitive landscape is moderately concentrated, with both local and international firms competing for market share through innovation, investment in technology, and supply chain expansion," the report stated.

As sustainability becomes more important, companies are exploring advanced solutions, such as compostable packaging, improved barrier films, and smart branding, to meet evolving consumer expectations and government regulations.

Meanwhile, the upcoming enforcement of Extended Producer Responsibility regulations under Kenya's Sustainable Waste Management Act is expected to significantly influence packaging practices and reshape the future of the sector.

These regulations will require manufacturers to take greater responsibility for the entire lifecycle of packaging materials, thereby promoting eco-design and recyclability.

There is also growing concern over supply chain vulnerabilities due to Kenya’s reliance on imported raw materials, especially polymers, making local sourcing, material substitution, and circular economy strategies increasingly crucial.

Additionally, East Africa’s regional trade integration through the African Continental Free Trade Area could open new markets for Kenyan packaging firms, enabling them to increase exports and benefit from economies of scale.

The packaging industry is experiencing a shift in talent, with firms investing in specialised skills for design, sustainability compliance, and automation—key areas for maintaining competitiveness in a market where efficiency, branding, and regulatory alignment are becoming increasingly important.

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