Market Trends of South Africa Metal Packaging Industry
This section covers the major market trends shaping the South Africa Metal Packaging Market according to our research experts:
Growing Food and Baverage Industry
- Metal packaging is predominantly employed in the food industry for packaging and preservation. Due to their excellent recycling ability, aluminum and steel are extensively used in packaging. Metal packaging's market growth has been fueled by its extended shell life and preservation of nutrients within the food.
- Furthermore, semi-processed ready-to-eat canned foods have also seen an increase in demand in the market due to their convenience and economic benefits for several consumers in South Africa.
- South Africa's food manufacturers are typically involved in several food groups, have established market shares, and control most food categories' production and sales capacity. South African food processors rely on formal retail chains to sell their products. Large multinational companies such as Nestlé and Unilever operate their manufacturing plants in South Africa, and food processed here is sold in both South Africa and the wider African market. The food market expansion across the country has boosted the market growth.
- With a population of more than 58 million, South Africa is the richest country and largest beer producer and consumer on the African continent. But the South African beer industry's growth has been muted for the last few years because of sluggish economic growth. Yet, the country remains one of the most interesting global beer markets, with a strong dominance of major players.
- Increasing disposable income and acceptance of occasional drinking drive the market's growth. Rising urbanization and the increasing introduction of innovative products by manufacturers is a lucrative opportunity for South Africa Alcoholic beverages growth.
- Moreover, the rising number of social drinkers and the surging working population also increase the market's development. The increasing middle-class population backed by the low content of alcohol in beers is adding to the South Africa Alcohol Beverage Market share. The rising number of retail channels, along with a busy life schedule, is propelling the market growth.
Understand The Key Trends Shaping This Market
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High Demand for Canned Food in South Africa
- The rising disposable income of the natives, coupled with a change in food preferences and a shift towards healthy lifestyles, are among the major driving factors expected to fuel the growth of the canned food market in Africa. Growing interest and investments by international players are further expected to trigger the market growth of the South African canned food demand in the near future.
- Additionally, the rising awareness regarding health and hygiene is adding to the development of the industry. Rising penetration towards extending the shelf life of the products, along with the high usage of metal cans in production, is adding to the South African metal packaging market share. The increasing availability of canned food such as canned vegetables and fruits is developing the market growth.
- For example, in May 2022, Higher beverage can volumes boosted Nampak's sales. Robust sales of beer, cider, and energy drinks and a resurgent demand for canned fish helped lift South African canmaker Nampak's half-year sales and profits.
- Additionally, in April 2022, Demand for beverage cans helped Hulamin return to profit. Hulamin returned to profit as the South African aluminum can stock producer emerged from pandemic shutdowns to meet sustained Demand for beverage cans.
- Moreover, in South Africa and Angola, Nampak is the largest manufacturer of beverage cans. In Nigeria, aluminum beverage cans comprise around half the market. For instance, South African canmaker Nampak signed a deal with the local arm of global brewer Anheuser-Busch InBev to export a billion cans to South, Central, and North America markets between 2020 and 2021, where there is a shortage of cans.
