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Africa: The Emerging Market

Posted 02 Dec 2021 by Shruti Chakraborty, IMEA Marketing Communications Analyst

Market Trends in Africa

Expected growth in the Africa packaging and hygiene market is driven by a growing population of young consumers, increased demand for consumer products, rising individual earnings, and strengthening domestic economies.

  • As Africa's cities and mobility expand, consumers are looking for products that provide the most value, such as bulk packs. Vendors might benefit from using attractive packaging to stimulate and boost sales.
  • As customers become increasingly concerned about single-use plastic packaging for food, beverages, pharmaceuticals, and other household items, the demand for glass containers and bottles is growing because they are both attractive and recyclable.
  • In the Middle East and Africa, the market for feminine hygiene products has significant potential. Manufacturers of feminine hygiene products are concentrating their efforts on these regions and are providing new products with improved characteristics, competitive pricing, and innovative product design and packaging.
  • Companies are investing in technology and technical expertise, working with local partners who are eager to take the lead in addressing the continent's packaging demands.

Upcoming Market

In a time when global development is slowing, Africa's rapidly rising population and markets present significant business potential. Greater business innovation and investment are needed to meet Africa's demand for goods and services, and to bridge infrastructural gaps, create jobs, and eliminate poverty.

According to Brookings research, Africa's current population of 1.2 billion is expected to increase to 1.7 billion by 2030. Over the next few decades, cities will account for more than 80% of Africa's population increase, making it the world's fastest-urbanizing area. At the same time, earnings are rising across most of the continent, opening new consumer market potential. By 2030, African consumers and businesses are expected to spend $6.66 trillion, up from $4 trillion in 2015. Food, drinks, medicines, financial services, healthcare, and education are among the industries where Africans have unmet requirements, and these trends are fueling growth.

Innovation and Growth

H.B. Fuller continues to increase its presence in Africa's emerging economy, while also addressing packaging trends and innovations to meet the needs of consumers. Africa's population expansion is driving these new trends and innovations, and H.B. Fuller continues to develop cutting-edge solutions across the industries it serves.

H.B. Fuller has already made significant investments in Africa, including new manufacturing and testing equipment, to boost capacity and improve product uniformity. All of this is done to meet local needs while also allowing for on-site changes. Our new facility in Cairo will increase our capabilities and reach in the Middle East and Africa. The new, cutting-edge production facility will serve as a regional adhesives supply hub, meeting the growing needs of our customers in Egypt, Turkey, the Middle East, and Africa. Watch this video from the Cairo Groundbreaking ceremony.

“We have invested in 37,000 square meters of land and have plenty of room for expansion. The new campus will include all the necessary high-tech facilities and equipment required to expand our lines and double our production, a modern warehouse, and a quality lab to better support the markets we serve,” says Senior Vice President and Global Rigid Packaging Leader Dietrich Crail.

We want to be fully cognizant of the local needs as we strengthen our commitment to the African continent. That's why we're engaging with local experts and distributors that genuinely understand the issues of such a diverse region. Each location presents us with new opportunities to innovate and conquer those challenges. H.B. Fuller will be able to supply high-quality adhesives solutions in various vital areas, including hygiene, packaging, and converting, thanks to the facility's anticipated world-class manufacturing capabilities.

The site is projected to be operational in late 2022. Sign up for newsroom alerts here.

Join us at PROPAK 2022 at booth 6A7 hall 6 from March 8-11, 2022 in Johannesburg, South Africa to learn about our latest innovations and key trends in the packaging industry.

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