Market Size of South Africa Paper Packaging Industry
Study Period | 2019 - 2029 |
Base Year For Estimation | 2023 |
Forecast Data Period | 2024 - 2029 |
Historical Data Period | 2019 - 2022 |
CAGR (2024 - 2029) | 5.98 % |
Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
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South Africa Paper Packaging Market Analysis
The South Africa Paper Packaging Market is expected to register a CAGR of 5.98% during the forecast period(2024-2029).
The South Africa Paper Packaging Market size is expected to grow from USD 2.16 billion in 2023 to USD 2.89 billion by 2028, at a CAGR of 5.98% during the forecast period (2023-2028).
The increase in demand for Paper Packaging in the Food and Beverage Industry in South Africa is projected to augment the market growth of paper-based packaging.
- The bulk of South Africa's industrial sector comprises the food and beverage industries, and paper packaging is the material of choice in the packaged food market. These can be found in various meals, such as dairy products, spices, and soups. It is frequently covered with plastics or polymers to preserve pristine and undamaged paper. It assists in lowering the overall finished product weight while retaining the freshness of the food product compared to glass and metal.
- In the last three years, South Africa's Department of Trade and Industry funded the food-processing sector with ZAR 736 million (USD 40.24 million) in incentives, while its Enterprise Investment Programme (EIP) incentive disbursed ZAR 636 million (USD 34.77 million) and facilitated investments of ZAR 3.7 billion (USD 0.20 billion) in the sector.
- Further, South Africa increased the demand for premium packaging, mainly from the cosmetics and household segments. In these categories, consumers use the packaging quality as a primary indication of the product's quality.
- The expansion of e-commerce sales and the rising demand for folded carton packaging are two significant factors driving the market under consideration across the country. On the other hand, the availability of high-performance substitutes is likely to stifle market growth.
- Plastics are incredibly long-lasting and can withstand harsh logistical and shipping circumstances. Plastics also have good visual appeal and superior moisture and air barrier qualities. The growing popularity of plastics poses a severe threat to the future growth of the paper packaging sector.
- The COVID-19 epidemic had a detrimental effect on the packaging sector, leading to a national lockdown, corporate sourcing decisions away from China, and packaging materials reevaluation. Despite having a sizable impact on the supply side of paper packaging, paper packaging scope dramatically grew due to a significant increase in end-user demand in particular applications.
South Africa Paper Packaging Industry Segmentation
Paper packaging is a cost-efficient and versatile method to protect, preserve, and transport a broad range of products. Additionally, it can be customized to meet customers' needs or product-specific requirements. Attributes like biodegradability, lightweight, and recyclability of paper packaging make it an essential component for packaging. This type of packaging is currently used for designing new and beautiful models and adding branding functions.
The South Africa Paper Packaging Market is segmented by product type (folding cartons, corrugated boxes, and other product types (flexible paper, liquid cartons, and others)) and end-user industry (food, beverage, healthcare, personal care, household care, electrical products).
The market sizes and forecasts are provided in value (USD) for all the above segments.
By Product Type | |
Folding Cartons | |
Corrugated Boxes | |
Other Types (Flexible Paper, Liquid Cartons, Etc.) |
By End-user Industry | |
Food | |
Beverage | |
Healthcare | |
Personal Care | |
Household Care | |
Electrical Products | |
Other End-user Industries |
South Africa Paper Packaging Market Size Summary
The South Africa paper packaging market is poised for significant growth, driven by increasing demand in the food and beverage sector. This sector's reliance on paper-based packaging is attributed to its effectiveness in preserving product freshness and reducing weight compared to alternatives like glass and metal. The market is also benefiting from the rise in e-commerce and the demand for premium packaging, particularly in cosmetics and household products, where packaging quality is a key indicator of product value. Despite challenges from high-performance substitutes like plastics, which offer durability and superior barrier properties, the paper packaging industry is expanding due to its environmental benefits and the growing preference for sustainable packaging solutions.
The market landscape is characterized by moderate competition, with both global and regional players holding substantial market shares. Companies are focusing on research and development, strategic partnerships, and expanding their international presence to drive growth. Notable collaborations, such as those between Detpak and Woolworths, and Mondi and Taurus Packaging, highlight the industry's shift towards sustainable practices. Investments in new manufacturing capacities, like Huhtamaki's fiber packaging unit, further underscore the market's potential. The South African paper packaging market is expected to continue its upward trajectory, supported by consumer demand for high-quality, reliable, and environmentally friendly packaging solutions.
South Africa Paper Packaging Market Size - Table of Contents
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1. MARKET INSIGHTS
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1.1 Market Overview
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1.2 Industry Attractiveness - Porter's Five Forces Analysis
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1.2.1 Bargaining Power of Suppliers
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1.2.2 Bargaining Power of Buyers
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1.2.3 Threat of New Entrants
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1.2.4 Threat of Substitute Products
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1.2.5 Intensity of Competitive Rivalry
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1.3 Industry Value Chain Analysis
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1.4 Assessment of COVID-19 Impact on the Market
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2. MARKET SEGMENTATION
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2.1 By Product Type
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2.1.1 Folding Cartons
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2.1.2 Corrugated Boxes
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2.1.3 Other Types (Flexible Paper, Liquid Cartons, Etc.)
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2.2 By End-user Industry
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2.2.1 Food
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2.2.2 Beverage
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2.2.3 Healthcare
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2.2.4 Personal Care
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2.2.5 Household Care
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2.2.6 Electrical Products
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2.2.7 Other End-user Industries
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South Africa Paper Packaging Market Size FAQs
What is the current South Africa Paper Packaging Market size?
The South Africa Paper Packaging Market is projected to register a CAGR of 5.98% during the forecast period (2024-2029)
Who are the key players in South Africa Paper Packaging Market?
Sappi Limited, Nampak Ltd., Neo-Pak, Huhtamaki and Detpak are the major companies operating in the South Africa Paper Packaging Market.