South Africa’s packaging future is being shaped by factors such as increasing earnings, urbanization, sustainability and advances in the food business.
The South African packaging business is poised for explosive expansion. Estimated at 44.2 billion units in 2022, the market is expected to grow at a compound annual growth rate (CAGR) of more than 2% from 2022 to 2027.
This expansion is being guided by a number of important variables and forces, which makes the packaging market in South Africa attractive to investors and other industry participants.
The packaging market in South Africa is growing at a rapid rate due to a number of important factors.
The rise in South African households’ disposable income is one of the main factors contributing to this growth. The average disposable income increased to ZAR 50,000 (USD 2766.22) in 2021 from ZAR 47,830 (USD 2636) the year before. The market for fresh food packaging is stimulated by the rising demand for convenient food products brought on by this growth in disposable income.
There has been a discernible shift towards smaller container formats, especially multipacks, as urbanization and mobility become the norm in South African culture. Manufacturers stand to gain a great deal from this trend by encouraging brand switching. Retailers also find these smaller packs appealing since they rely on beautiful packaging to boost sales while saving valuable shelf space.
Increased awareness of health and wellbeing together with urbanization have resulted in a rise in the consumption of a variety of goods, including food and drinks (alcoholic and non-alcoholic). Due to this increase in consumption, there is a rising need for a variety of packaging options, such as glass bottles and containers.
The packaging market in South Africa is facing difficulties despite its general expansion. Environmental and recycling concerns have grown in importance, which has raised demand for sustainable packaging options. This move towards sustainability is further aided by growing raw material costs for substitute packaging solutions.
The packaging market in South Africa is being shaped by a number of noteworthy trends.
The economic expansion-driven trend of urbanization in South Africa has led to an increase in the demand for ready-to-eat meals. The market for packaging solutions based on bags and pouches has expanded as a result of the trend towards urban living and hectic lives.
The proportion of adults in Sub-Saharan Africa between the ages of 12 and 24 has been rising over time. This group of consumers also tends to spend more on food that is consumed on the go and drinks, both alcoholic and non-alcoholic, which increases the need for packaging solutions.
Customers are beginning to value space-efficient packaging more and more as the trend moves towards smaller families and urban living with constrained storage space. Because carton packing is effective at optimizing logistical performance, it has become a viable solution.
