South Africa Plastic Caps and Closures Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 0.69 Billion |
| Market Size (2029) | USD 0.91 Billion |
| CAGR (2024 - 2029) | 5.69 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
South Africa Plastic Caps and Closures Market Analysis
The South Africa Plastic Caps And Closures Market size is estimated at USD 0.69 billion in 2024, and is expected to reach USD 0.91 billion by 2029, growing at a CAGR of 5.69% during the forecast period (2024-2029). In terms of shipment volume, the market is expected to grow from 15.17 billion units in 2024 to 18.79 billion units by 2029, at a CAGR of 4.37% during the forecast period (2024-2029).
The South Africa caps and closures market includes various end-user verticals, including food, beverage, personal care and cosmetics, household chemicals, etc. The demand for caps and closure plastic packaging has grown owing to its distinct advantages, including stiffness, high impact strength, and high barrier qualities.
- The food and beverage sector is pivotal in the nation's caps and closures market. Plastic packaging, known for its durability and ability to prolong shelf life, is gaining traction in end-user industries such as cosmetics and personal care. Caps and closures offer a significant advantage in product preservation for online retailers, who often prioritize extended shelf life.
- According to the United Nations Human Settlements Programme, South Africa, a highly urbanized African nation, currently has 67% of its populace residing in urban regions, which is expected to surge to 80% by 2050. The infrastructural networks significantly shape the urban expansion dynamics nationwide. Notably, the northeastern region, propelled by regional and national development corridors, is experiencing the most pronounced growth rates. This increases the demand for packaged products along with caps and closures.
- According to the Department of Trade, Industry, and Competition, the South Africa plastics market boasts a robust value chain, serving domestic needs and international exports. At the same time, packaging and other sectors lead to plastic consumption. South Africa still imports polyolefin polymers, mainly for specific grades not locally available, to mitigate seasonal shortages and diversify suppliers. Additionally, the nation imports significant quantities of finished and semi-finished plastic products, including those made from polymers it exports.
- Further, according to a study by SA Polymer Technology, the plastics industry significantly bolsters the country's output growth and employment, boasting a multiplier effect of 3.7% for each job created and 3.5% for every Rand invested. Recognized as a priority sector by the government, the South Africa plastics industry is a cornerstone of the nation's economy. In the last few years, it employed approximately 60,000 individuals and transformed over 1.8 million tons of polymer into finished plastic goods.
- The United Nations Industrial Development Organisation (UNIDO) and WWF South Africa are leading a five-year initiative to bolster the adoption of circular plastic packaging and systems in the food and beverage industry. This initiative, currently in the planning stage, is backed by the Global Environment Facility's (GEF) Integrated Programme on Circular Solutions to Plastic Pollution. This initiative is particularly crucial given South Africa's outsized role in plastic pollution within sub-Saharan Africa.
South Africa Plastic Caps and Closures Market Trends
Polyethylene Terephthalate (PET) is Expected to Witness Growth
- Polyethylene terephthalate (PET) is extensively used in food and beverage packaging due to its notable resistance to water vapor, gases, and other liquids. Moreover, its recyclability and enduring resistance further bolster its appeal. PET's durability and reliability make it a preferred choice for food-grade items, especially in single-serve drink containers and closures.
- With a heightened consumer focus on eco-friendly practices, sustainable packaging solutions have garnered significant attention. With its recyclability and potential for a circular lifecycle, PET has emerged as a pivotal resin in eco-friendly packaging. Notably, soft drinks are housed in PET bottles, primarily due to PET's adeptness at retaining CO2. Beyond soft drinks, PET packaging is prevalent in other beverage segments, spanning fruit juices, sports drinks, oils, and other non-alcoholic drinks.
- According to Plastics SA, PET finds applications in various products, including carbonated drink bottles, water bottles, and plastic jars. Renowned for its strength and durability, PET exhibits flexibility when thinly stretched. South Africa boasts some of PET's highest recycling rates globally, owing to its widespread use in products and packaging and ease of processing.
- Further, according to Statistics of South Africa, the food and non-alcoholic beverages’ consumer price index in October 2023 was 112.8 and reached 113.9 in February 2024. This is symbolizing an increase of 1.1 points from the previous year. This rise indicates the country's demand for food and non-alcoholic beverages, which might leverage the market for caps and closures.
- However, PET is known for its versatility, finds extensive use in bottle production and can be molded into diverse shapes. Manufacturers can enhance PET's properties by incorporating colorants, UV blockers, and other additives, tailoring bottles to meet specific brand requirements. While the availability of raw materials has seen improvement and supply dynamics have become more favorable, manufacturers have responded by increasing the production and recycling of PET.
Beverage Sector is Expected to Witness Growth in the Country
- Fast-paced consumers seek products that are convenient to carry and easy to transport. Beverage packaging offers features like handles, making it portable and easy to store. Sectors like wine and spirits, juice, and energy drinks are prime candidates for adopting the caps and closures market.
- The demand for plastic packaging is on the rise, driven by the growing soft drink consumption in South Africa. Carbonates dominate the soft drink sales in the region, alongside a notable uptick in health drink purchases. Coffee remains a staple in beverage consumption, with a prominent trend toward developing new indigenous products.
- According to Statistics South Africa, the consumer price index of wine in South Africa was 113.5 in October 2023 and reached 114 in February 2024. This symbolizes an overall increase of 6% compared to the previous year. Notably, South Africa boasts a robust alcoholic drinks sector, particularly in wine and beer, standing as one of the world's leading wine exporters.
- In June 2023, Designer Water, a prominent beverage industry player, revealed its EnergyEntrePreneur initiative, tailored for its latest offering, the SPEED Energy Drink in South Africa. This initiative offers resellers a chance to turn a profit and positions SPEED Energy Drink as a healthier and more potent alternative to traditional energy beverages.
- Modern consumers prioritize innovation, economy, convenience, and sustainability in purchasing decisions. Caps and closures meet and exceed these expectations in the food and beverage sector. This trend is evident in the rising popularity of beverages. Caps and closures allow preservation, extend the shelf life, and safeguard the nutritional content of these healthful beverages.
South Africa Plastic Caps and Closures Industry Overview
The South Africa Plastic Caps and Closures market is fragmented, with many domestic and major players, such as Amcor PLC, ALPLA Group, Polyoak Packaging, Nampak Ltd, Tetra Pak Global, and more. Companies operating in the region are focused on expanding their business through innovations, collaborations, acquisitions, mergers, etc.
- June 2023: ALPLA Group, a specialist in packaging and recycling, constructed a cutting-edge recycling plant in Ballito, a coastal town in South Africa just north of Durban. This facility, set to produce 35,000 tonnes of recycled PET material, signifies ALPLA's debut in the Ltd recycling landscape with a targeted completion by autumn 2024.
South Africa Plastic Caps and Closures Market Leaders
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Amcor Plc
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Nampak Ltd.
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Polyoak Packaging
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Tetra Pak Global
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ALPLA Group
*Disclaimer: Major Players sorted in no particular order
South Africa Plastic Caps and Closures Market News
- December 2023: Switch Energy Drink, a player in the energy beverage sector, unveiled G-Force, a limited-edition energy drink from a pioneering partnership with Biogen South Africa, a distinguished wellness brand known for its top-tier vitamin and supplement offerings. G-Force epitomizes the fusion of cutting-edge energy tech and Biogen South Africa's wellness ethos. This joint effort promises a potent energy kick but guarantees a revitalizing drinking experience, showcasing both brands' dedication.
- October 2023: Safripol introduced a new rPET product from 15% to 25% post-consumer recycled plastic resin. This offering, dubbed a 'one bag' solution, simplifies things for Safripol's customers. Converters can access a single product that meets national and global recycled post-consumer waste content regulations. Notably, this product enables the creation of items that not only meet but surpass the stipulations of South Africa's Waste Act.
South Africa Plastic Caps and Closures Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Market Overview
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4.2 Industry Attractiveness - Porter's Five Forces Analysis
- 4.2.1 Bargaining Power of Suppliers
- 4.2.2 Bargaining Power of Buyers
- 4.2.3 Threat of New Entrants
- 4.2.4 Threat of Substitute Products
- 4.2.5 Intensity of Competitive Rivalry
- 4.3 Industry Value Chain Analysis
5. MARKET DYNAMICS
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5.1 Market Drivers
- 5.1.1 Plastic Industry is Driving the Market Growth
- 5.1.2 Need for Recycled Plastic to Witness Growth
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5.2 Market Restraints
- 5.2.1 Environmental Concerns Owing to Plastic Materials and Raw Material Price Fluctuations
6. INDUSTRY REGULATION, POLICY AND STANDARDS
7. MARKET SEGMENTATION
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7.1 By Resin
- 7.1.1 Polyethylene (PE)
- 7.1.2 Polyethylene Terephthalate (PET)
- 7.1.3 Polypropylene (PP)
- 7.1.4 Other Plastic Materials (Polystyrene, PVC, Polycarbonate, etc.)
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7.2 By Product Type
- 7.2.1 Threaded
- 7.2.2 Dispensing
- 7.2.3 Unthreaded
- 7.2.4 Child-resistant
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7.3 By End-User Industry
- 7.3.1 Food
- 7.3.2 Beverage
- 7.3.2.1 Bottled Water
- 7.3.2.2 Carbonated Soft Drinks
- 7.3.2.3 Alcoholic Beverages
- 7.3.2.4 Juices & Energy Drinks
- 7.3.2.5 Other Bevrages
- 7.3.3 Personal Care & Cosmetics
- 7.3.4 Household Chemicals
- 7.3.5 Other End-use Industries
8. COMPETITIVE LANDSCAPE
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8.1 Company Profiles*
- 8.1.1 Tetra Pak Global
- 8.1.2 Amcor Plc
- 8.1.3 Berry Global Inc.
- 8.1.4 Nampak Ltd
- 8.1.5 Mpact Group Limited
- 8.1.6 Polyoak Packaging
- 8.1.7 Nioro Plastics (Pty) Ltd
- 8.1.8 Cherry & Co.
9. INVESTMENT ANALYSIS
10. FUTURE OUTLOOK OF THE MARKET
** Subject To AvailablitySouth Africa Plastic Caps and Closures Industry Segmentation
The scope of the study characterizes the plastic caps and closures market based on the raw material of the product, including PP, PE, PET, and other raw materials used across various end-user industries such as Food, Pharmaceuticals, Beverage, Cosmetics and Toiletries and more across the country. The research also examines underlying growth influencers and significant industry vendors, all of which help to support market estimates and growth rates throughout the anticipated period. The market estimates and projections are based on the base year factors and arrived at top-down and bottom-up approaches.
South Africa Plastic Caps and Closures Market is Segmented by Resin(Polyethylene (PE), Polyethylene Terephthalate (PET), Polypropylene (PP), and Other Plastic Materials (Polystyrene, PVC, Polycarbonate, etc.)), Product Type(Threaded, Dispensing, Unthreaded, and Child-Resistant), End-User Industry (Food, Beverage (Bottled Water, Carbonated Soft Drinks, Alcoholic Beverages, Juices & Energy Drinks, and Other Beverages), Personal Care & Cosmetics, Household Chemicals, and Other End-User Industries). The report offers market forecasts and size in volume (Units) and value (USD) for all the above segments.
| By Resin | Polyethylene (PE) | |
| Polyethylene Terephthalate (PET) | ||
| Polypropylene (PP) | ||
| Other Plastic Materials (Polystyrene, PVC, Polycarbonate, etc.) | ||
| By Product Type | Threaded | |
| Dispensing | ||
| Unthreaded | ||
| Child-resistant | ||
| By End-User Industry | Food | |
| Beverage | Bottled Water | |
| Carbonated Soft Drinks | ||
| Alcoholic Beverages | ||
| Juices & Energy Drinks | ||
| Other Bevrages | ||
| Personal Care & Cosmetics | ||
| Household Chemicals | ||
| Other End-use Industries |
South Africa Plastic Caps and Closures Market Research FAQs
How big is the South Africa Plastic Caps And Closures Market?
The South Africa Plastic Caps And Closures Market size is expected to reach USD 0.69 billion in 2024 and grow at a CAGR of 5.69% to reach USD 0.91 billion by 2029.
What is the current South Africa Plastic Caps And Closures Market size?
In 2024, the South Africa Plastic Caps And Closures Market size is expected to reach USD 0.69 billion.
Who are the key players in South Africa Plastic Caps And Closures Market?
Amcor Plc, Nampak Ltd., Polyoak Packaging, Tetra Pak Global and ALPLA Group are the major companies operating in the South Africa Plastic Caps And Closures Market.
What years does this South Africa Plastic Caps And Closures Market cover, and what was the market size in 2023?
In 2023, the South Africa Plastic Caps And Closures Market size was estimated at USD 0.65 billion. The report covers the South Africa Plastic Caps And Closures Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the South Africa Plastic Caps And Closures Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
South Africa Plastic Caps and Closures Industry Report
Statistics for the 2024 South Africa Plastic Caps And Closures market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. South Africa Plastic Caps And Closures analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
