Report Overview

South Africa Packaging Market - Industry Trends & Forecast Report, 2029

South Africa packaging market size was estimated at USD 4.67 billion in 2022. During the forecast period between 2023 and 2029, the size of South Africa packaging market is projected to grow at a CAGR of 7.05% reaching a value of USD 7.03 billion by 2029. Major growth drivers for the South Africa packaging market include an increasing population growth and urbanization, changing consumer lifestyles, and increasing industrial activities. The surge in household disposable income is driving demand for convenient food items, propelling the fresh food packaging market. According to the South African Reserve Bank, the country's households had an average disposable income of ZAR 50,000 (USD 2,756.22) in 2021, up from ZAR 47,830 (USD 2,636) in 2020. Also, urbanization and mobility trends are pushing the use of small packs and multipacks, creating opportunities for brand switching among manufacturers and saving shelf space for traders. Increased urbanization and health awareness have also boosted the consumption of food, beverages, and alcohol, leading to varying packaging trends, including the use of glass containers and bottles. As of May 2022, the Consumer Price Index (CPI) for food and non-alcoholic beverages in South Africa is at 105.5 points, up 7.4 points from the previous year.

South Africa Packaging Market – Overview

South Africa packaging market refers to the industry that involves the design, manufacturing, and distribution of various types of packaging materials and solutions within the geographic region of South Africa. It encompasses a wide range of packaging options, including but not limited to flexible packaging, rigid packaging, paper and board packaging, metal packaging, glass packaging, and plastic packaging. The packaging industry in South Africa plays a vital role in supporting various sectors, such as food and beverages, pharmaceuticals, personal care products, industrial goods, and more. It serves to protect, preserve, and present products for distribution, sale, and consumption, while also meeting safety, quality, and regulatory standards. The market is influenced by factors such as population growth, urbanization, consumer preferences, industry trends, technological advancements, sustainability concerns, and economic conditions. As the demand for packaged goods continues to evolve, the South Africa packaging market adapts to meet the changing needs and preferences of businesses and consumers.

South Africa Packaging Market

Growth Drivers

Growing Population in Rapidly Expanding Urban Areas

Economic growth and rapid urbanization have expanded South Africa's access to processed and fast food, driving demand for ready-to-eat meals and bags and pouches-based packaging. The beauty industry targets Sub-Saharan Africa's anticipated growth as the "next frontier," with a projected population of 2.4 billion by 2050, an emerging middle class, and increasing urbanization, fostering substantial beauty market growth. Urban areas experience changing consumption patterns, particularly among the young population aged 12 to 24 in Sub-Saharan Africa, as noted by the World Bank, fueling demand for beverages and on-the-go food, boosting the packaging industry. Also, the trend of smaller families and urban living boosts the popularity of space-efficient carton packaging.

Restraints

Changing Consumer Preferences and Market Trends

South Africa Packaging Market faces challenges stemming from changing consumer preferences and market trends, which have the potential to restrain its growth. Evolving consumer preferences, driven by factors such as sustainability concerns and lifestyle changes, demand more eco-friendly and innovative packaging solutions. Market trends, such as the rising popularity of e-commerce and the need for convenient, on-the-go packaging, require adaptability from packaging companies. Also, increased competition in the industry puts pressure on businesses to offer unique and cost-effective packaging solutions to meet consumer demands effectively.

Impact of COVID-19 on South Africa Packaging Market

COVID-19 pandemic adversely affected the South Africa packaging market. It resulted in disruptions in supply chains, manufacturing, and distribution channels, causing delays and shortages. The shift in consumer behavior towards online shopping and increased demand for packaged essentials, like food and pharmaceuticals, presented both challenges and opportunities for the packaging industry. While some sectors faced reduced demand due to lockdowns and economic uncertainties, others experienced heightened demand. The pandemic accelerated the adoption of sustainable and hygienic packaging solutions as consumers prioritized safety. As the situation evolved, the industry's resilience and ability to adapt were essential for its recovery and growth.

South Africa Packaging Market

Segmental Coverage

South Africa Packaging Market – By Source

By source, the South Africa packaging market is divided into Flexible Packaging, Rigid Plastic Packaging, and Board Packaging & Glass segments. The flexible packaging held the highest share in the South Africa packaging market in 2022 and is expected to maintain its dominance during the forecast period. Flexible packaging is generally more cost-effective compared to rigid packaging options, making it a preferred choice for manufacturers and retailers. It often requires fewer raw materials and transportation costs, leading to overall cost savings. Flexible packaging can be adapted to various shapes and sizes, making it suitable for a wide range of products, including snacks, beverages, personal care items, and pharmaceuticals. Its versatility allows it to cater to diverse industry needs. Also, consumers appreciate the convenience of flexible packaging, as it is easy to open, resealable, and often portable, which aligns with the on-the-go lifestyle trends. Meanwhile, rigid plastic packaging segment is expected to witness the fastest growth rate during the forecast period due to its durability, versatility, and cost-effectiveness. It is widely used for various applications, including food and beverages, personal care products, and pharmaceuticals, making it the preferred choice for many industries in the region.

South Africa Packaging Market – By End Use

Based on end use, the South Africa packaging market is divided into Food & Beverages, Healthcare & Cosmetics, Consumer Goods, and Industrial segments. The food and beverages segment held the highest share in the South Africa packaging market by end use. The South Africa government is prioritizing the food and beverages sector, a significant component of the country's manufacturing industry. They actively encourage the further development of agriculture and agro-processing. Innovative sustainable and customized flexible packaging solutions have seen remarkable growth in the market. Imports of food and consumer goods contribute significantly to the demand for packaging solutions. Rising demand for packaged foods, cost-saving measures, and investments in food processing are driving packaging growth. The market also experiences increased demand for energy drinks, low and non-alcoholic beers, and craft beers due to changing consumer preferences. The removal of alcohol sales restrictions in January 2022 is expected to positively impact glass packaging as well. Furthermore, the expansion of the food retail sector has contributed to rapid growth in retail sales, amounting to USD 40 billion in 2021 as the country's economy recovered from the COVID-19 pandemic. This growth was driven by the easing of COVID-19 regulations and increased in-store shopping rates.

Competitive Landscape

Major players operating in the South Africa packaging market include International Paper Company, Mondi Group, Smurfit Kappa Group, DS Smith PLC, WestRock Company, UFlex Limited, Huhtamaki OYJ, Amcor PLC, and Coveris Holding SA. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In October 2022 - ALPLA Group, an Austria-based company specializing in plastic packaging and recycling, consolidated its five existing facilities in South Africa into a single location. The new production site, situated in Lanseria, near Johannesburg, is valued at USD 50 million and serves as the company's headquarters in Sub-Saharan Africa. Spanning an area of 35,000m², the facility includes covered spaces for production, administration, and storage purposes. This strategic move reflects ALPLA Group's commitment to optimizing operations and strengthening its presence in the region.

Scope of the Report

By Packaging Material

• Flexible Packaging

• Rigid Plastic Packaging

• Board Packaging & Glass

By End Use

• Food & Beverages

• Healthcare & Cosmetics

• Consumer Goods

• Industrial

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. South Africa Packaging Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Growing organized retail sector
         2. Population growth in expanding urban areas
      2. Restraints
         1. Changing consumer preferences and market trends
      3. Opportunities
         1. Advancements in technology
      4. Challenges
         1. Environmental concerns
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. South Africa Packaging Market Overview
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Packaging Material
         1. Flexible Packaging
         2. Rigid Plastic Packaging
         3. Board Packaging & Glass
         4. Others
      2. By End Use
         1. Food & Beverages
         2. Healthcare & Cosmetics
         3. Consumer Goods
         4. Industrial
5. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. South Africa Packaging Company Market Share Analysis, 2022
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
6. Impact of Covid-19 on South Africa Packaging Market
   1. Company Profile (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
   2. International Paper Company
   3. Mondi Group
   4. Smurfit Kappa Group
   5. DS Smith PLC
   6. WestRock Company
   7. UFlex Limited
   8. Huhtamaki OYJ
   9. Amcor PLC
   10. Coveris Holding SA
   11. Other Prominent Players
7. Key Strategic Recommendations
8. Research Methodology
   1. Qualitative Research
      1.  Primary & Secondary Research
   2.  Quantitative Research
   3.  Market Breakdown & Data Triangulation
      1.  Secondary Research
      2.  Primary Research
   4. Breakdown of Primary Research Respondents, By Region
   5.  Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable.

List of Figures

Figure 1       South Africa Packaging Segmentation

Figure 2       South Africa Packaging Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2022

Figure 4       South Africa Packaging Market Size, By Value (USD Billion), 2019–2029

Figure 5       South Africa Packaging Market Share, By Packaging Material, By Value, 2019–2029

Figure 6       South Africa Packaging Market Share, By End Use, By Value, 2019–2029

List of Tables

Table 1        South Africa Packaging Market Size, By Value (USD Billion), 2019–2029

Table 2        South Africa Packaging Market Size, By Packaging Material, By Value, 2019–2029

Table 3        South Africa Packaging Market Size, By End Use, By Value, 2019–2029

Table 4        International Paper Company Overview

Table 5        International Paper Company Financial Overview

Table 6        Mondi Group Company Overview

Table 7        Mondi Group Financial Overview

Table 8        Smurfit Kappa Group Company Overview

Table 9        Smurfit Kappa Group Financial Overview

Table 10      DS Smith PLC Company Overview

Table 11      DS Smith PLC Financial Overview

Table 12      WestRock Company Overview

Table 13      WestRock Company Financial Overview

Table 14      UFlex Limited Company Overview

Table 15      UFlex Limited Financial Overview

Table 16      Huhtamaki OYJ Company Overview

Table 17      Huhtamaki OYJ Financial Overview

Table 18      Amcor PLC Company Overview

Table 19      Amcor PLC Financial Overview

Table 20      Coveris Holding SA Company Overview

Table 21      Coveris Holding SA Financial Overview