South Africa Paper Packaging Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

South Africa Paper Packaging Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

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 Food and Beverage Industry is projected to augment the market growth of paper-based packaging.

Key Highlights

  • 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 Market Trends

Increase In Demand for Paper Packaging in Food and Beverage Industry

  • Food and beverage packaging is in greater demand in South Africa. According to the IMF, the African region's GDP grew by more than 3.5% in 2022, which contributed to the expansion of the packaging industry due to expanding consumer goods markets, soaring individual incomes, a rise in the number of young consumers, and a home economy.
  • Paper packaging, particularly as a substitute for secondary or tertiary packaging, is becoming more popular since it protects products from moisture and endures lengthy delivery durations. The need is fueled by processed meals, such as bread, cakes, and other perishable goods, which require these packaging materials to be used only once.
  • Paper bags also satisfy customers' desire for secure, leak-proof, and recyclable packaging. In locations where takeout and online food delivery are becoming more popular, paper bags are gradually replacing plastic packing options. It is anticipated that paper packaging will also be able to meet the growing demand from the food and beverage industry.
  • The country also witnesses foreign investors and hostile takeovers of growing packaging firms. For instance, in April 2021 - Pargo teamed up with Detpak to develop sustainable paper packaging for the logistics industry. Detpak designed paper mailing bags to do the same job as their plastic counterparts bringing much-needed environmental sustainability to the last-mile leg of deliveries in South Africa.

Personal Care Sector to Witness Significant Growth

  • Personal care packaging is critical for beauty and cosmetics because it enhances the product's visual appeal and contributes to its aesthetic value. As a result, many companies are investing in visually appealing packaging for hair care, skin care, deodorants, and other products. Cosmetic packaging accounts for a sizable portion of the overall personal care packaging market.
  • In October 2021, Mondi collaborated with Taurus Packaging on a wet-strength paper shopping bag for the South African retail market, which can prevent up to 2 million plastic bags from entering waste streams in the region every month. The wet strength feature enables the shopping bag to meet the 16 kg standard requirement of the South African market without tearing when cold products and liquids condense inside.
  • Consumers in South Africa are predicted to desire high-quality goods with necessary characteristics like dependability and cost. Consumers choose domestic or foreign brands depending on the area's lifestyles, traditions, and affordability.
  • In May 2021, Huhtamaki invested in additional fiber packaging capacity with a manufacturing unit in South Africa. The facility will begin its operations at the end of 2021 and will serve the company's existing and new egg packaging customers in the province.

South Africa Paper Packaging Industry Overview

The South Africa Paper Packaging market is moderately competitive and consists of many global and regional players. These industry participants have a sizable market share and concentrate on growing their international clientele. These businesses will focus on R&D initiatives, strategic alliances, and other organic and inorganic growth tactics for the projected period.

  • June 2022 - Detpak announced a partnership with Woolworths on paper bags which further continues to roll out locally made Detpak paper bags as it prepares to phase out its plastic shopping bags.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
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Please note: The report will take approximately 2 business days to prepare and deliver.

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
4.1 Market Overview
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​
4.4 Assessment of COVID-19 Impact on the Market
5.1 Market Drivers
5.1.1 Increase in Demand for Paper Packaging in Food and Beverages Industry
5.1.2 Increasing Growth of E-commerce Creating Demand for Various Paper and Paperboard Packaging Types
5.2 Market Restraints
5.2.1 Effects of Deforestation on Paper Packaging
5.2.2 Increasing Raw Material Costs and Outsourcing
6.1 By Product Type
6.1.1 Folding Cartons
6.1.2 Corrugated Boxes
6.1.3 Other Types (Flexible Paper, Liquid Cartons, Etc.)
6.2 By End-user Industry
6.2.1 Food
6.2.2 Beverage
6.2.3 Healthcare
6.2.4 Personal Care
6.2.5 Household Care
6.2.6 Electrical Products
6.2.7 Other End-user Industries
7.1 Company Profiles
7.1.1 Sappi Limited
7.1.2 Nampak Ltd.
7.1.3 Neo-Pak
7.1.4 Huhtamaki
7.1.5 Detpak
7.1.6 Mondi Group
7.1.7 Amipack
7.1.8 Smurfit Kappa Group
7.1.9 Kalideck South Africa
7.1.10 Amcor Flexibles

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