Market Trends of South Africa Paper Packaging Industry
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.
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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.
