Paper Packaging in South Africa Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Report Covers Paper Bags Packaging in South Africa Market Trends and it is Segmented by Product Type (folding cartons, corrugated boxes, and other product types (flexible paper, liquid cartons, and others)) and End-User Industry (food, beverage, healthcare, personal care, household care, electrical products). The market size and forecasts are provided in terms of value (USD million) for all the above segments.

South Africa Paper Packaging Market Size

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South Africa Paper Packaging Market
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR (2024 - 2029) 5.98 %
Market Concentration Low

Major Players

South Africa Paper Packaging Market

*Disclaimer: Major Players sorted in no particular order

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South Africa Paper Packaging Market Analysis

The South Africa Paper Packaging Market is expected to register a CAGR of 5.98% during the forecast period(2024-2029).

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

  • 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.
Industry Revenue of Restaurants, Bars and Canteens in South Africa from 2013 to 2023, in USD billion

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 Market

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.

South Africa Paper Packaging Market Leaders

  1. Sappi Limited

  2. Nampak Ltd.

  3. Neo-Pak

  4. Huhtamaki

  5. Detpak

*Disclaimer: Major Players sorted in no particular order

South Africa Paper Packaging Market.jpg
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South Africa Paper Packaging Market News

  • October 2022 - Sappi and Frankfurter Brett collaborate and announce an innovation; a sustainable kitchen console made from Sappi Symbio. Sappi Symbio combines high-quality cellulose from wood fiber and thermoplastics. The benefits of Sappi Symbio include a natural look, a soft touch, high rigidity, and strength, together with a lower environmental footprint.
  • September 2022 - Sappi completed the investment agreement with Aurelius. It includes reducing exposure to the graphic paper segment while expanding Sappi's presence in parts including packaging and specialty papers, pulp, and biomaterials.

South Africa Paper Packaging Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.2.1 Bargaining Power of Suppliers

      2. 4.2.2 Bargaining Power of Buyers

      3. 4.2.3 Threat of New Entrants

      4. 4.2.4 Threat of Substitute Products

      5. 4.2.5 Intensity of Competitive Rivalry

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Assessment of COVID-19 Impact on the Market

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Increase in Demand for Paper Packaging in Food and Beverages Industry

      2. 5.1.2 Increasing Growth of E-commerce Creating Demand for Various Paper and Paperboard Packaging Types

    2. 5.2 Market Restraints

      1. 5.2.1 Effects of Deforestation on Paper Packaging

      2. 5.2.2 Increasing Raw Material Costs and Outsourcing

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Product Type

      1. 6.1.1 Folding Cartons

      2. 6.1.2 Corrugated Boxes

      3. 6.1.3 Other Types (Flexible Paper, Liquid Cartons, Etc.)

    2. 6.2 By End-user Industry

      1. 6.2.1 Food

      2. 6.2.2 Beverage

      3. 6.2.3 Healthcare

      4. 6.2.4 Personal Care

      5. 6.2.5 Household Care

      6. 6.2.6 Electrical Products

      7. 6.2.7 Other End-user Industries

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles

      1. 7.1.1 Sappi Limited

      2. 7.1.2 Nampak Ltd.

      3. 7.1.3 Neo-Pak

      4. 7.1.4 Huhtamaki

      5. 7.1.5 Detpak

      6. 7.1.6 Mondi Group

      7. 7.1.7 Amipack

      8. 7.1.8 Smurfit Kappa Group

      9. 7.1.9 Kalideck South Africa

      10. 7.1.10 Amcor Flexibles

    2. *List Not Exhaustive
  8. 8. INVESTMENT ANALYSIS

  9. 9. FUTURE OF THE MARKET

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South Africa Paper Packaging Industry Segmentation

Paper packaging is a cost-efficient and versatile method to protect, preserve, and transport a broad range of products. Additionally, it can be customized to meet customers' needs or product-specific requirements. Attributes like biodegradability, lightweight, and recyclability of paper packaging make it an essential component for packaging. This type of packaging is currently used for designing new and beautiful models and adding branding functions.

The South Africa Paper Packaging Market is segmented by product type (folding cartons, corrugated boxes, and other product types (flexible paper, liquid cartons, and others)) and end-user industry (food, beverage, healthcare, personal care, household care, electrical products).

The market sizes and forecasts are provided in value (USD) for all the above segments.

By Product Type
Folding Cartons
Corrugated Boxes
Other Types (Flexible Paper, Liquid Cartons, Etc.)
By End-user Industry
Food
Beverage
Healthcare
Personal Care
Household Care
Electrical Products
Other End-user Industries
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South Africa Paper Packaging Market Research FAQs

The South Africa Paper Packaging Market is projected to register a CAGR of 5.98% during the forecast period (2024-2029)

Sappi Limited, Nampak Ltd., Neo-Pak, Huhtamaki and Detpak are the major companies operating in the South Africa Paper Packaging Market.

The report covers the South Africa Paper Packaging Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the South Africa Paper Packaging Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Paper Packaging in South Africa Industry Report

Statistics for the 2024 Paper Packaging in South Africa market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Paper Packaging in South Africa analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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Paper Packaging in South Africa Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)