Packaged Water Leads Beverage Industry In Growth Rate

NIGERIA’S beverage industry, which is led by an estimated 27.2 billion liters packaged water market, is expected to grow by 10.8 percent by 2019, Sidel, a leading global packaging line Original Equipment Manufacturer (OEM), has said.

This was revealed at the recent Value Creation Day organised by Sidel, in Lagos, for its customers in Nigeria. The day was organized to examine the trend, challenges and opportunities in the beverage packaging industry.

Sidel’s delegation from its Greater Middle East and Africa office said that the opportunities for estimated growth in the Nigerian market would afford local producers a chance to deliver greater value to customers with better packaging solutions, especially with Polyethylene Terephthalate (PET) bottles.

Oliver Fraise, Managing Director, SBA Nigeria Limited, said that Nigerian consumers are pressurising packaging companies to switch from glass to PET, a trend, which according to him signifies the global movement of convenient bottles.
“Consumers are pushing for convenient bottles, because of its on-the-go advantage. If one buys goods in glass bottles, he would have to return the bottle,” he said.

He said SBA and Sidel have been partners for over 20 years and that, though Nigeria may be experiencing some squeeze in international trade due to the tightening of the economy by government, there are abundant opportunities for business growth in the country.

At Sidel, we are known for creating value for packaging industry milk, nectar, beer, wine, spirit, beverages, drinkable and non drinkable beverage. Our customers in Nigeria and Ghana have the benefit of knowing about a lot ranging from industry trends to latest innovations in packaging solutions in water, carbonated soft drinks (CSD), and Hot Filling, as well as the after-sales services.
“We are bringing service and spare parts to the local market. We have a central store worldwide. It is based in Europe, where we keep genuine parts to ensure quality. But the service is local. That means we have 60 employees in Nigeria, among which are seven expatriates.”

He noted that though some of the company’s customers that wanted to invest in production lines in the North have delayed investments because of the insurgency, the company sees it as an opportunity nonetheless, because it has a local office and people on ground to support customers.

Regional Commercial Director for Greater Middle East and Africa (GMEA) at Sidel, Dominique Martin, said the company offers opportunities for small and medium scale businesses (SMEs) with intention to expand their operations, especially those that are interested in getting good value for money, adding that if SMEs prove to have good business practices and good record with banks, Sidel can extend credit facilities to them.