South Africa Packaging Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 10.82 Billion |
| Market Size (2029) | USD 13.49 Billion |
| CAGR (2024 - 2029) | 4.52 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
South Africa Packaging Market Analysis
The Packaging Industry In South Africa Market size is estimated at USD 10.82 billion in 2024, and is expected to reach USD 13.49 billion by 2029, growing at a CAGR of 4.52% during the forecast period (2024-2029).
- South Africa's market is witnessing momentum from a surge in young consumers, heightened consumer goods demand, and an expanding economy. The upswing in household disposable income, as reported by the South African Reserve Bank, underscores this trend. In the fiscal year 2022-23, households boasted an average disposable income of ZAR 50,500 (USD 2738), a slight uptick from the ZAR 50,000 (USD 2756.22) recorded in FY 2021-22.
- As urbanization and mobility surge in the country, the shift toward smaller and multipack offerings gains prominence. This trend offers manufacturers a chance to sway consumer brand loyalties and entice traders. The appeal lies in these products' space-saving nature and their knack for driving sales through eye-catching packaging.
- Urbanization's rapid pace and heightened health awareness have fueled a surge in the consumption of food, beverages (both alcoholic and non-alcoholic), and other products. This, in turn, has spurred a need for diverse packaging solutions, leading to notable shifts in the preference for glass containers and bottles. Data from Statistics South Africa reveals that the Consumer Price Index (CPI) for food and non-alcoholic beverages in South Africa stands at 111.1 points as of October 2023, marking a 5.2-point increase from the preceding year.
- However, the market’s growth is hindered by rising environmental concerns and a growing emphasis on recycling. Consequently, there is a rising demand for sustainable packaging solutions, especially as raw material prices for alternative packaging solutions continue to climb. This trend is pushing companies to innovate and develop eco-friendly packaging options to meet consumer expectations and regulatory requirements. The shift toward sustainability is influencing market dynamics, compelling businesses to adapt their strategies to remain competitive.
South Africa Packaging Market Trends
Growing Urbanization in the Country
- South Africa's rising economic expansion and rapid urbanization have bolstered its access to processed and fast food. With a significant portion of the population comprising busy, working-class professionals, the nation notably prefers ready-to-eat meals. This trend is expected to drive the demand for bags and pouches-based packaging solutions during the forecasted period.
- Leading global beauty and cosmetics firms are strategically leveraging the anticipated growth in Sub-Saharan Africa, often hailed as the industry's "next frontier." The region's population is set to double to 2.4 billion by 2050, bolstered by a burgeoning middle-income population and rapid urbanization. Projections indicate the beauty market here is poised to double in size over the coming decade.
- Urban consumers are embracing evolving trends and consumption patterns. In Sub-Saharan Africa, the demographic of 12 to 24-year-olds has been consistently growing, now representing a significant portion of the population, as reported by the World Bank. Given that this youthful demographic typically shows a higher propensity for spending on both alcoholic and non-alcoholic beverages, as well as on-the-go food, the demand for packaging is poised to escalate.
- As families shrink and urban living rises, homes are downsizing, leading to a demand for space-efficient packaging. Carton packaging emerges as the ideal solution, optimizing both storage and logistical efficiency.
Food and Beverage Industry to Add Significant Growth to the Market
- The South African government is prioritizing the food and beverage sector, recognizing its pivotal role within the country's manufacturing landscape. It is actively promoting the growth of both agriculture and the agro-processing industry.
- Technological advancements have spurred the creation of tailored, eco-friendly, flexible packaging solutions, leading to a remarkable upsurge in the packaging sector. A significant share of the packaging industry in Africa caters to imported food and consumer goods. This growth is primarily fueled by an increasing appetite for packaged foods, a drive to maintain competitive pricing, and substantial investments in food processing.
- In South Africa, the bakery sector is witnessing a surge in demand for cost-effective, ready-to-eat products, propelling the industry forward. Government support further bolsters this growth, particularly toward micro, home-based, cooperative bakeries and confectioneries. Despite facing challenges like Corporate Sustainability Programs, HSE legislative changes, and ensuring consistent electrical power supply, South Africa's process industry remains on a growth trajectory. Clients in the region are displaying resilience, actively strategizing to navigate these challenges and sustain growth.
- Younger consumers are increasingly favoring energy drinks. Notably, the rising preference for low and non-alcoholic beers alongside craft brews is a significant trend in the beer market. This shift is underscored by a broader industry move toward premiumization, emphasizing quality over quantity. Moreover, the government's removal of all alcohol sales restrictions is poised to boost alcohol sales, directly benefiting the glass packaging sector.
- Consumer preferences are shifting toward healthier and more natural options, fueling the rise of organic, plant-based, and functional beverages. South Africa also has a rising appetite for premium alcoholic beverages, a trend expected to persist in the coming years. Notably, local breweries are incorporating fruit hops in their craft beers, a move that resonates well with consumers, helping these companies carve out a premium niche and driving market expansion.
South Africa Packaging Industry Overview
The South African packaging market is fragmented, with many players representing a considerable market share. These major players with a prominent market share focus on expanding their customer base worldwide and leveraging strategic initiatives to increase their market share and profitability.
- July 2024: Agile Capital acquired the shares in Berry Global Group Inc.'s Consumer Packaging International (CPI) division in South Africa, previously owned by WDB Investment Holdings.
- March 2024: Coleus Packaging, a prominent metal crown manufacturer, is gearing up to boost its production. The company aims to produce 7 to 8 billion metal crown closures. These closures are destined for bottling companies, breweries, and beverage industry players in South Africa and across the broader African continent. This strategic expansion follows Coleus Packaging's hefty investment of ZAR 40 million (USD 2.11 million) in the cutting-edge PMC500 metal crown manufacturing machine.
South Africa Packaging Market Leaders
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Constantia Afripack Sacks
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Berry Astrapak
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WestRock
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Huhtamaki Springs South Africa
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Mondi Merebank
*Disclaimer: Major Players sorted in no particular order
South Africa Packaging Market News
- May 2024: Alpla Group, a plastic packaging and recycling firm headquartered in Austria, unveiled a strategic collaboration with South Africa's Re-Purpose. This partnership aims to enhance PET plastic recycling in South Africa. Allocating USD 65 million to the cause, Alpla is actively constructing a PET reprocessing facility in Ballito, located in the KwaZulu-Natal province of South Africa, on a sprawling 22-acre plot.
- January 2024: Tetra Pak South Africa officially joined the Proudly South African organization at an event held at Monte Casino. The event was graced by the 1st Secretary of Trade and Economic Affairs, representatives from key South African government departments, including the Department of Trade and Industry (DTIC), the Department of Environmental Affairs (DFFE), and the Department of Trade and Industry in KwaZulu Natal. Attendees included representatives from Business Sweden and Proudly South African, alongside a diverse group of Tetra Pak customers.
South Africa Packaging Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definitions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
4.4 Assessment of Macroeconomic Factors on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Growing Demand from Food and Beverage Industry
5.1.2 Rising Demand for Packaging from Retail Sector
5.2 Market Challenge
5.2.1 The Rising Environmental Concerns
6. MARKET SEGMENTATION
6.1 By Packaging Material
6.1.1 Plastic
6.1.2 Paper and Paperboard
6.1.3 Metal
6.1.4 Glass
6.2 By Product Type
6.2.1 Bottles
6.2.2 Bags and Pouches
6.2.3 Corrugated Boxes
6.2.4 Metal Cans
6.2.5 Other Product Types
6.3 By End-user Industry
6.3.1 Food and Beverage
6.3.2 Household and Personal Care
6.3.3 Pharmaceuticals and Healthcare
6.3.4 Other End-user Industries
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Constantia Afripack Sacks (Constantia Flexibles)
7.1.2 Berry Astrapak
7.1.3 WestRock
7.1.4 Huhtamaki Springs South Africa
7.1.5 Mondi Merebank (Mondi PLC)
7.1.6 Sonoco Products Company
7.1.7 Tetra Laval Group
7.1.8 Win-Pak
7.1.9 Detpak
7.1.10 Dalgen Packaging CC
7.1.11 ACS Promotions (Pty) Ltd
7.1.12 Clear Crafts
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
South Africa Packaging Industry Segmentation
The market is tracked based on the analysis of materials, products, and end-user industries, providing a detailed assessment of all types of packaging based on factors related to the different packaging product's demand and supply. The study also covers the packaging industry limited to South Africa and the vendors operating in the country.
The packaging market in South Africa is segmented by packaging material (plastic, paper and paperboard, metal, and glass), product (bottles, bags, and pouches, corrugated boxes, and metal cans), and end-user industry (food and beverage, household and personal care, pharmaceutical, and healthcare). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Packaging Material | |
| Plastic | |
| Paper and Paperboard | |
| Metal | |
| Glass |
| By Product Type | |
| Bottles | |
| Bags and Pouches | |
| Corrugated Boxes | |
| Metal Cans | |
| Other Product Types |
| By End-user Industry | |
| Food and Beverage | |
| Household and Personal Care | |
| Pharmaceuticals and Healthcare | |
| Other End-user Industries |
South Africa Packaging Market Research FAQs
How big is the Packaging Industry In South Africa Market?
The Packaging Industry In South Africa Market size is expected to reach USD 10.82 billion in 2024 and grow at a CAGR of 4.52% to reach USD 13.49 billion by 2029.
What is the current Packaging Industry In South Africa Market size?
In 2024, the Packaging Industry In South Africa Market size is expected to reach USD 10.82 billion.
Who are the key players in Packaging Industry In South Africa Market?
Constantia Afripack Sacks, Berry Astrapak, WestRock, Huhtamaki Springs South Africa and Mondi Merebank are the major companies operating in the Packaging Industry In South Africa Market.
What years does this Packaging Industry In South Africa Market cover, and what was the market size in 2023?
In 2023, the Packaging Industry In South Africa Market size was estimated at USD 10.33 billion. The report covers the Packaging Industry In South Africa Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Packaging Industry In South Africa Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Packaging in South Africa Industry Report
Statistics for the 2024 Packaging in South Africa market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Packaging in South Africa analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Packaging Market in South Africa Report Snapshots
