Packaging Industry in South Africa Market: Ken Research

Packaging plays many roles with the introduction of the product, added preserving products, ingredients, dosage instructions, brand communication, and so on. Packaging is important in transportation, warehousing, logistics, sales, and end use of products. It providing convenience to customers and attracts customers to purchase the products. Majority of the packaging vendors produce packaging materials using sustainable raw materials such as paper, plastic, metal, glass, and flexible materials. Initially, natural packaging materials were made from natural materials such as reed baskets, wooden boxes, barrels, and woven bags. Other types of packing materials are paper, metal cans, tins, cartons and boxes made up of prefabricated paperboard. The report titled “Packaging Industry in South Africa”, provides a comprehensive analysis of packaging products in South Africa, growth in the industry, major leading players, country’s economy impact, eco-friendly packaging products, technological advancements, and future of packing products in South Africa.

Industrial revolution has demanded for mass-produced goods and packaging became a necessity. To improve the sales of a product, the manufacturers created their own brand identities, with message on packaging explaining the nature of products. The development in digital technology and other innovations has made packaging industry more interactive and informative. The major market challenge in the packaging industry is the increasing cost of raw materials. The growth in the packaging industry is majorly driven by the popularity of sustainable packaging.

Growth and Leading Players in South Africa’s Packaging Industry: It was observed that South Africa’s economy continued to decline from the year 2016 with weak growth, growing unemployment rates and low consumer’s disposable income. Therefore, the population always made best value for their money while making purchases that led to rising sales of bulk pack sizes, small pack sizes, multipacks, and discounted products. The leading vendors in South Africa’s packaging materials are Greif, Mondi, Nampak, Tetra Pak, Active Packaging, Afripack, Astrapak, Bitrad Consulting, Bowler-Metcalf, Consol, HullPack Sachets, LC Packaging, Mpact and Polyoak Packaging Group. Snacks manufacturers in South Africa launched various pack sizes that meet with the demand for different consumption occasions. The introduction of PET bottles in soft drinks category is supported by the recycling trend and environmental awareness among South Africans. Glass is a dominating packaging material in South Africa in the alcoholic drinks category.

South African growth in packaging materials is primarily not driven by commodities but with growing consumer markets. The demand for quality products will increase the opportunities for the packaging industry. There is an increased demand for premium packaging in the cosmetics and household segments. Majority of the consumers in South Africa check for the quality of the packaging as a basic indication of the quality of the product it contains. Increase in urbanisation has attracted small packs and multipacks in all variants of commodities. This trend is creating opportunities, more products in the stores and attractive packaging to encourage sales. Rapid urbanisation and increased health awareness has boosted the alcoholic and non-alcoholic beverages category with the introduction of glass containers and bottles.

New trends in packaging Industry in South Africa: The introduction of biodegradable plastics will have a positive impact on the packaging industry in the country. The adoption of materials such as polyvinyl alcohol, polyanhydrides and polylactic acid by the major packaging companies in South Africa will reduce the use of conventional plastic packaging materials over the next few years. The need for sustainability and innovation has increased the consumers demand for packing materials that are eco- friendly. Majority of the manufacturers are investing in R & D programmes to develop materials that can be recycled, retain their traditional abilities to resist friction, moisture and heat.

South Africa’s packaging market is highly fragmented due to the presence of several domestic and international players. This trend is disrupting and hindered the growth of the overall packaging market due to stiff competition and vendors are reducing the packing materials prices to remain competitive. South Africa is witnessing volatile prices and rising costs of raw materials such as aluminium, plastic and paper for the production of consumer packaging. There is a search for cheaper substitutes of the available packing materials.

Technological Advancement: AeroClay technology is at the budding stage in packaging developments, using clay and other ingredients to develop new, versatile materials that are sturdy, eco-friendly and temperature resistant. The benefits of this technology are that packaging material is insulated and keeps products fresh for many days.

Future of Packaging Industry in South Africa: South Africa will witness a high growth in the packaging industry in the next few years due to increased markets for consumer products, growing individual incomes, increasing population and growing domestic economy. The challenges posed for the South African packaging industry are an increase in demand for premium packaging, the emergence of biodegradable plastics, increased use of multipacks, small packs, need for sustainability and innovation. All the packaging manufacturers in South Africa are ready to adapt the new trends in packaging materials and ready to meet changes of consumer packaging demands over the next few years.

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