Market Trends of Africa Plastic Packaging Industry
Food Industry to Hold Major Share in Both Rigid and Flexible Plastic Packaging Markets
- Plastic food storage containers help preserve food during storage or keep them fresh by effective sealing. These containers are suitable for use in cafes, grocery shops, or any food business. Packaging is an important market in West Africa. This industry has developed in the sub-region largely in response to farming and the growth of the food industry. Nigeria, South Africa, and Kenya have a substantial share of the plastic packaging market in the region.
- The food sector in Eastern and Southern Africa is expected to grow by 800% by 2050, with trade in processed foods increasing by up to 90%. Africa as a whole is anticipated to be a USD 1 trillion food industry by 2030, with urban consumption driving demand for more products. Food packaging is one of Africa's most significant end-user plastic industries. Rigid plastic packaging is increasing in the food industry. The industry uses it for its properties, such as lightweight and reduced cost.
- Rigid plastic and disposable containers are integral to takeouts, food chains, and restaurants. However, there are environmental concerns across the region. The opening of several food chains across the region has spiked the demand for plastic packaging in Africa. In May 2022, the Dubai-based halal fast-food chain ChicKing announced its intentions to open 30 outlets in Kenya over the next five years.
- Typical flexible food packaging applications include films and pouches to package food products like cheeses, meats, bread, and vegetables, among others. In most cases, flexible packaging is used as the primary packaging, but it can also be used as the secondary packaging in some cases.
- These films can be laminated or nonlaminated and withstand harsh environments like freezers. Their impact strength, tear strength, flex-crack resistance, and excellent sealing properties are extensively used in food applications. Such factors are driving the flexible packaging market in the country.
- Due to increasing urbanization in Africa, more people are living in cities and having less access to fresh produce, which is driving the demand for flexible packaging. Additionally, the growing focus of consumers toward sustainability is leading to packaging made from recycled materials that can be easily recycled, hence supporting the demand for flexible packaging.
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South Africa to Hold Significant Market Share
- The rising popularity of packed meals, the expanding number of restaurants and supermarkets, and rising bottled water and beverage consumption are all key drivers of the country's market expansion.
- The South African home care products market has seen considerable growth in recent years owing to a growing trend among individuals to maintain a healthier lifestyle. This has driven demand for products like beverage bottles, toiletry bottles, plastic bags, and others, thereby increasing the growth of the region's plastic packaging market.
- With the country's enormous volume of plastic garbage, the recycling trend is expanding at a healthy rate, owing to government restrictions and strong consumer awareness. Moreover, companies like Coca-Cola in South Africa collected and recycled more PET than was produced within the country.
- On the demand side, customers in South Africa are migrating to e-commerce as mobile connectivity develops. This tendency has accelerated as a result of the COVID-19 pandemic as well as a spike in interest in contactless transactions inside the country. This has permitted several market acquisitions. For instance, in July 2021, Austrian plastic packaging firm ALPLA Group purchased South African packaging producer Verigreen Packaging to extend its footprint in southern Africa.
- Overall, beverage consumption in the country is increasing rapidly, despite the impact of external economic variables. Soft drink consumption is increasing in the country as a result of climatic conditions, with people drinking more carbonated beverages. Due to severe water scarcity in the country over the previous two years, the usage of bottled water has also increased dramatically. With PET bottles becoming the market norm, the demand for plastic bottles has also increased. Therefore, these factors are driving the growth of the plastic packaging market in the country.
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