Market Trends of South Africa Plastic Packaging Films Industry
Polypropylene Film is Expected to Witness Significant Growth
- The South African government is driving sustainability in the polypropylene plastic packaging films market. Notably, the Extended Producer Responsibility (EPR) regulation now requires companies to pay fees tied to their plastic production or imports. This move incentivizes recycling and the adoption of eco-friendly materials.
- The increased availability of polymers can help local manufacturers expand their production capacities. This can lead to greater market penetration, both domestically and in export markets, enhancing the competitiveness of South African plastic packaging film producers.
- According to Plastics SA, the consumption of virgin and recyclate polymers in South Africa amounted to 1.79 million tonnes in 2017 and reached 1.96 million in 2022 for the year ended June 2023.
- With the increase in polymer consumption, the demand for plastic packaging films is also expected to rise. Packaging films are a significant application of polymers, and as more raw materials become available, manufacturers can produce more packaging films to meet market needs.
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Food to Witness Significant Growth
- The plastic packaging film market in South Africa is characterized by its strong use in the food industry. Consumers tend to look for cost-effective, sustainable, lightweight, reusability, recyclability, convenient, and heat-resistant products, which helps drive demand for packaging film in food products.
- The growth of supermarkets and hypermarkets in urban areas further increases the demand for high-quality, durable plastic packaging films to meet the needs of these retail environments.
- According to the latest data published by the World Bank in December 2023, South Africa accounted for more than 68% of the urban population in 2022. As one of the most developed countries in Africa, South Africa is one of the top areas of industrial and manufacturing opportunities.
- Urbanization is accelerating, and major cities like Johannesburg, Durban, and Cape Town, which are expanding, are luring a younger generation of shoppers who are changing their consumption patterns and purchasing more processed and packaged goods.
- As urban areas expand and attract a younger generation of shoppers, the demand for processed and packaged goods rises. This demographic shift leads to increased consumption of convenience foods, beverages, and other consumer goods, all of which require plastic packaging films solutions.
- The import of beef products requires efficient cold chain logistics to maintain the quality and safety of the meat. This involves using specialized plastic packaging films with excellent barrier properties and durability. As the cold chain logistics industry expands, the demand for such films will increase.
- According to the US Department of Agriculture (USDA), the import of beef products in South Africa was USD 13 million in 2023, up from USD 6.69 million in 2022.
- As the volume of imported beef products grows, there will be a higher demand for local packaging solutions to repackage, store, and distribute the beef products within South Africa. This is expected to drive the demand for high-quality plastic packaging films.
