Market Trends of Africa BOPP Films Industry
This section covers the major market trends shaping the Africa BOPP Films Market according to our research experts:
Growing Demand from the Retail Sector
- The demand for BOPP films in the African region is driven by the opening up of the retail sector in the emerging market and associated consumer spending on packaged food and other goods. In order to cater to the increasing demand, vendors are innovating new products and focusing on expanding their businesses. In December 2021, Flex P. Films Egypt, a part of India-based packaging materials and solutions company UFlex inaugurated a new production line for manufacturing and exporting high-barrier plastic films for the first time in the Middle East with a total investment of USD 100 million.
- In East Africa, there is already a noticeable shift from the informal to the formal retail sector. Companies like Walmart and The Carrefour Group are expanding their reach across the continent. In August 2022, Walmart moved to acquire South Africa-based retailer and wholesaler Massmart to enter into the high-growth retail market in South Africa and bought outstanding shares of Massmart for ZAR 62 per share (USD 3.65).
- In addition, with the growing population and steady recovery from the COVID-19 pandemic, the retail industry in Nigeria is showing promising growth and expansion, with the increasing number of retail players contributing 16% of the country's GDP.
- Moreover, in March 2022, South Africa's Shoprite Group, the largest grocery retailer in Africa, reported significant growth in its sales and profits. The retailer stated that the sale of merchandise increased by 10% to ZAR 91.1 billion (USD 5.9 billion) compared to the last year within the same period, regardless of the impacts of COVID-19 lockdown regulations.
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South Africa Expected to Hold Significant Share
- The South African government is prioritizing the sector. Food and beverages are the most significant components of South Africa's manufacturing industry, with the government actively encouraging further development of agriculture and the agro-processing sector. South Africa is witnessing increased demand for food and beverage packaging, where films are used in larger amounts.
- Retail sales in South Africa increased rapidly as the food retail sector expanded. According to the US Department of Agriculture, South African retail food sales totaled USD 40 billion in 2021 as the South African economy began to recover from the COVID-19 pandemic's effects. The expansion coincided with the relaxation of COVID-19 regulations and rising in-store shopping rates, increasing the demand for BOPP films.
- Several innovations have enabled the development of sustainable and customized flexible packaging solutions, increasing the packaging market in South Africa. Exports of food and consumer goods from South Africa account for a significant portion of the country's packaging solutions. Rising packaged food demand, the need to keep costs low, and investments in food processing is driving the demand for BOPP films in packaging applications.
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