South Africa Plastic Packaging Market Overview
South Africa Plastic Packaging Market Size was valued at USD 2.5 Billion in 2022. The South Africa Plastic Packaging industry is projected to grow from USD 2.6 Billion in 2023 to USD 3.3 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 3.00% during the forecast period (2024 - 2032). Growing need for packaged goods, as well as food and beverage consumption, are the main market drivers anticipated to propel the Plastic Packaging market in South Africa.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
South Africa Plastic Packaging Market Trends
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Growing demand for food and drink is driving the market growth
South Africa's population is growing and urbanizing quickly, which is increasing demand for packaged goods. The demand for portable and easy-to-use packaging solutions is rising as more people relocate to cities, which is driving the market CAGR. The world population is expected to grow, which will raise consumption demands and contribute to an expansion in the market for food and drink. The population's increasing discretionary income, which raises their buying power parity, will also help the food and beverage business. The number of food outlets, supermarkets, and retail stores has expanded worldwide due to rapid urbanization, serving the wealthy suburban population.
Furthermore, international best practices and standards are adopted by multinational corporations operating in the region, which has an impact on customer preferences, packaging design, and material advances in the South African market. As the name implies, rigid packaging is far more durable, inflexible, and strong than converted plastic packaging. Once it takes on a certain structure, it becomes difficult to change. Typically, flexible packaging is composed of paper, film, foil, and plastic. The global telecom boom and the expanding ability of infrastructure to install fiber optic connectivity for improved internet services have both fueled the growth of the e-commerce industry. Due to the market's large number of phone makers, production costs have decreased, making phones more accessible and affordable for customers. The expanding food and beverage sector, considering the growing population and rising standard of living. According to a recent survey, 64% of South Africans live in cities, and by 2030, this percentage is predicted to rise to 71%. Eight in ten people are predicted to live in cities by 2050. Urbanization is accelerating, and metropolises—like the expanding Johannesburg, Durban, and Cape Town—are drawing a younger consumer base that is shifting their dietary preferences and purchasing more packaged and processed foods. Additionally, this increases the need for prepared or portable meals, which in turn increases the need for trays, lids, and flexible packaging.
As reported by the United States Department of Agriculture as of July 2023 five significative players dominated the South African retail Food market. They include Shoprite Holdings Ltd, Pick ‘n Pay Retailers Pty Ltd, Spar Group Ltd, Massmart (branch of Walmart) and Woolworths Holdings Ltd. Collectively, they control a striking 80 percentage of the market leaving the remainder 20 percentage to be mostly taken by informal retail channels.
South Africa Plastic Packaging Market Segment Insights
South Africa Plastic Packaging Type Insights
The South Africa Plastic Packaging market segmentation, based on type includes rigid and flexible. The flexible segment dominated the market mostly. This is because businesses seeking to save manufacturing costs find polyethylene to be an appealing alternative to other plastic materials since it is frequently more affordable, so consumers may grow accustomed to its dependability and ease. There will likely always be a market for goods packed in polyethylene.
South Africa Plastic Packaging Material Insights
The South Africa Plastic Packaging market segmentation, based on material, includes PE (polyethylene), PP (polypropylene), PVC (polyvinyl chloride), PET (polyethylene terephthalate) and PS (Polystyrene). The PE (polyethylene) generated the most income. These days, a wider range of distribution channels, such as health stores, internet merchants, and supermarkets & convenience stores, make these beverages more easily accessible. Companies are selling new flavors like lavender, watermelon, peach, and passionfruit alongside their original beverages and promoting them through off-trade platforms, which is drawing in more customers because of the variety of creative flavors.
South Africa Plastic Packaging end-user Insights
The South Africa Plastic Packaging market segmentation, based on end-user, includes food, healthcare, pharmaceutical, beverage, cosmetics, and personal care. The food generated the most income. Because packaged food products, snacks, drinks, and other items are produced, stored, packaged, distributed, and consumed, as well as because a growing population and the demand for packaged food goods and beverages are being driven by an increasing level of living, converted plastic packaging will continue to grow.
South Africa Plastic Packaging Product Type Insights
The South Africa Plastic Packaging market segmentation, based on Product Type, includes Bottles and Jars, Pouches, Bags, Films, and Wraps. The pouches generated the most income. Pouches, a type of flexible packaging, are utilized for both liquid and solid food. Because of the pouches' adaptable structure and ability to be tailored to fit the product, they are perfect for fluid packaging. In the food and beverage industry, as well as other industrial sectors, pouches can be easily used by attaching lids or squeezing mechanisms.
Figure 1: South Africa Plastic Packaging Market, by Product Type, 2023 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
South Africa Plastic Packaging Country Insights
South Africa is rapidly becoming more urbanized and populous, which is increasing demand for packaged goods. The demand for portable and easy-to-use packaging solutions is rising as more people relocate to cities. The government of South Africa has designated the plastic manufacturing industry as a critical sector. It accounts for 16.6% of the manufacturing sector and 1.9% of the nation's GDP. The plastic packaging industry contributes the most to plastic production, at over 53%, suggesting that the market has significant potential in 2018. Economic expansion usually results in increasing trade activity, industrial production, and spending by consumers, all of which drive up demand for plastic packaging in a number of industries, including food and beverage, pharmaceuticals, and personal care.
South Africa Plastic Packaging Key Market Players & Competitive Insights
Leading market players are putting a lot of money into R&D to expand their product lines, which will spur additional expansion in the plastic packaging market in South Africa. Additionally, market players are engaging in a range of calculated actions to increase their presence, with important market developments including the introduction of new goods, agreements, mergers and acquisitions, higher investment levels, and collaboration with other businesses. to expand and survive in an increasingly cutthroat industry, South Africa Plastic Packaging industry must offer things at a fair price.
Major players in the South Africa Plastic Packaging market are making investments in R&D operations in an effort to boost market demand, including Amcor Limited, Nampak Ltd, Mpact Ltd, Constantia Flexibles Corporation, RPC Astrapak Ltd, Mondi PLC.
Key Companies in the South Africa Plastic Packaging market include
South Africa Plastic Packaging Industry Developments
January 2024 – At an event held at Monte Casino, Tetra Pak South Africa was formally inducted into the South African organization. This is an important milestone for the company in its efforts to contribute towards the growth of the South African economy and its stakeholders. Mr. Martin Jornrud, 1st Secretary Trade and economic affairs Swedish embassy among other representatives from the main South Africa government institutions like Department of Trade and Industry (DTIC), Department of Environmental Affairs (DFFE), and the KwaZulu Natal Department of Trade and Industry were present at this event.
July 2024 – Berry Astrapak has sold a significant minority interest to private equity giant, Agile Capital. Berry Astrapak concentrates on production of different types of rigid molded and thermoformed plastic packaging products focusing on the African region. The company headquartered offers manufacturing sites in Gauteng, Western Cape and Kwa-Zulu Natal and is well posed to penetrate into the growth orientated plastic packaging market.
July 2023- Apart from that, the ALPLA Group, which is one of the global leaders in plastic packaging, directed money into enhancing its recycling capacity. The company manages 13 plants as well as four joint ventures with local firms.
ALPLA has established an ambitious goal, and that is to include at least 25% of postconsumer material (including PCR) in their processes by 2025. ALPLA rehabilitation of their market position with enormous investments in new buildings in South Africa, Romania and Thailand as well as expansion in Poland under the umbrella ALPLA recycling focuses those different activities under one brand in a coherent way.
In April 2023, Naspers and its subsidiaries Takealot and Media24 announced their participation in the construction of South Africa’s mutual partnership – the South African Plastics Pact, whose members consist of plastic packaging manufacturers, plant owners, recycling facilities, government and non-government organizations that aim to reduce plastic waste through plastic circular economy systems in the country.
South Africa Plastic Packaging Market Segmentation
South Africa Plastic Packaging Type Outlook
South Africa Plastic Packaging Material Outlook
South Africa Plastic Packaging end-user Outlook
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Food
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Beverages
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Healthcare
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Pharmaceuticals
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Beverage
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Cosmetics
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Personal Care
South Africa Plastic Packaging Product Type Outlook
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Bottles and Jars
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Pouches
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Bags
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Films
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Wraps
| Report Attribute/Metric |
Details |
| Market Size 2022 |
USD 2.5 Billion |
| Market Size 2023 |
USD 2.6 Billion |
| Market Size 2032 |
USD 3.3 Billion |
| Compound Annual Growth Rate (CAGR) |
3.00% (2024-2032) |
| Base Year |
2023 |
| Market Forecast Period |
2024-2032 |
| Historical Data |
2019-2022 |
| Market Forecast Units |
Value (USD Billion) |
| Report Coverage |
Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered |
Type, Material, end-user, Product Type |
| Countries Covered |
South Africa |
| Key Companies Profiled |
Amcor Limited, Nampak Ltd, Mpact Ltd, Constantia Flexibles Corporation, RPC Astrapak Ltd, Mondi PLC |
| Key Market Opportunities |
The population's increasing discretionary income which raises their buying power parity Rise in the growing need for packaged goods |
| Key Market Dynamics |
Growth in food and beverage consumption Rising demand for portable and easy-to-use packaging solutions is rising as more people relocate to cities |
Frequently Asked Questions (FAQ) :
In 2023, the plastic packaging market in South Africa was projected to be worth USD 2.6 billion
From 2024 to 2032, the market is projected to develop at a (CAGR) of 3.00%.
The key players in the market are Amcor Limited, Nampak Ltd, Mpact Ltd, Constantia Flexibles Corporation, RPC Astrapak Ltd, Mondi PLC.
The Pouches dominated the market in 2023.
The Food category had the largest share in the market.
