South Africa Plastic Packaging Market Size (2024 - 2029)

South Africa Plastic Packaging Market Analysis

The South Africa Plastic Packaging Market size is estimated at USD 2.59 billion in 2024, and is expected to reach USD 2.99 billion by 2029, growing at a CAGR of 2.89% during the forecast period (2024-2029).

The plastic packaging industry in South Africa has grown owing to its distinct advantages, including stiffness, high impact strength, and high barrier qualities.

In South Africa, plastic manufacturing contributes approximately 1.9% of the country's GDP, constitutes around 16.6% of the manufacturing sector, and has been defined as a crucial industry by the government.

South Africa has witnessed high levels of urbanization over the last few years. As per a recent study, around 64% of South Africans live in urban areas, which is expected to increase to 71% by 2030. Urbanization is picking up, and metros, such as the growing cities of Johannesburg, Durban, and Cape Town, are attracting the younger generation of consumers who are changing their consumption habits and are increasingly buying processed and packaged foods. This also creates demand for ready or on-the-go meals, directly driving the demand for plastic packaging.

Plastic packaging, lauded for its durability and ability to prolong product shelf life, is gaining traction in various industries, such as personal and home care. Aseptic packaging enables the food and beverage industry to forgo preservatives, allowing products to stay fresh longer. E-commerce businesses, emphasizing extended shelf life, are increasingly turning to advanced packaging technologies, a trend that will persist in the coming years.

According to the US Department of Agriculture, in July 2023, five significant players dominated the South African retail food market. They are Shoprite Holdings Ltd, Pick n Pay Retailers Pty Ltd, Spar Group Ltd, Massmart (a subsidiary of Walmart), and Woolworths Holdings Ltd. Together, they command an impressive 80% share of the market, leaving the remaining 20% mainly to the informal retail industry. Critical trends in South Africa's retail foods industry for 2024 underscore a sustained surge in e-commerce and home delivery services. Such trends would push the demand for plastic packaging in the country.

Plastic packaging is facing hurdles in market growth, such as mounting environmental concerns and a push for recycling. Consequently, the need for sustainable packaging is rising, especially as raw materials for alternative packaging solutions become pricier. Moreover, manufacturers of plastics and plastic products grapple with escalating input costs, such as fossil fuels for plastic production and primary plastics for the end products.

South Africa Plastic Packaging Industry Segmentation

The scope of the study characterizes the plastic packaging industry based on the raw materials of the product, including PP, PE, PET, and other raw materials used across various end-user industries, such as food and beverage, 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.

The plastic packaging industry in South Africa is segmented by product type (bottles and jars, pouches, bags, films and wraps, and other product types), type of plastic (rigid plastic and flexible plastic), material (polyethylene (PE), polypropylene (PP), polyvinyl chloride (PVC), polyethylene terephthalate (PET), and other materials), and end-user industry (food, beverages, healthcare and pharmaceuticals, personal and home care, and other end-user industries). The market sizes and forecasts are provided in terms of value (USD) for the above segments.