Market Trends of South Africa Protective Packaging Industry
This section covers the major market trends shaping the South Africa Protective Packaging Market according to our research experts:
Growing Demand for E-commerce-based Products
- E-commerce is becoming more popular than conventional shopping due to the factors like speedy delivery, free shipping, and straightforward return policies. The demand for plastic protective packaging is rising due to the massive availability of numerous items, the growing desire for unique products, and the significant expansion of the entire e-commerce industry.
- Moreover, online purchases in South Africa mostly come from local websites or marketplaces, although 27% come from the United States and 14% come from Europe. The third most popular e-commerce website in South Africa is the American counterpart of Amazon.com. The increasing e-commerce purchases may create more opportunities for local packaging vendors.
- Most meal delivery services have seen growth from grocery stores and fast food/convenience stores. UberEATS is an option in South Africa and competes with Mr. Delivery, a regional platform. Price-conscious consumers like online sales and discounts. South Africans use social media more frequently to look for product suggestions and compare costs online.
- Additionally, the fast growth in the use of smartphones and the inadequate fixed-line infrastructure make mobile e-commerce particularly appealing in South Africa. Mobile spending is expected to rise, which presents a vast potential for online businesses. For businesses to improve the online shopping experience, they can offer mobile optimization.
- According to ITA, by 2025, Africa is expected to have more than half a billion e-commerce customers, representing a market with a sustained CAGR of 17%. Furthermore, by 2025, 40% of African consumers are expected to have used e-commerce. Being a prominent market in the area, South Africa may experience significant development in e-commerce, opening up opportunities for vendors of protective packaging.
Understand The Key Trends Shaping This Market
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PaperBoard Protectors are Expected to Witness Significant Growth Rates
- Protective packaging has emerged as one of the most crucial packaging solutions for the food industry and other industries. Innovations in protective packaging have been consistent with the companies' strategies targeting to retain their business and identify new opportunities by broadening their product portfolio and creating new product demand. The market is mainly driven by B2B demand, making the economies of scale a significant factor for businesses to bargain. An increasing number of rigid paper packaging solution providers are spending significantly on R&D activities to develop technologically-advanced solution offerings.
- Moreover, consumer electronics are packaged to provide the highest level of protection for delicate, large, heavy, or expensive commodities while in storage or transit. Multiple layers in consumer electronics packaging strengthen such items to make them more durable than standard cardboard. Corrugated paperboards also serve as the product's transportation cushion. Products made with corrugated packaging are 100% recyclable, economical, and may be used in place of other packaging materials.
- Further, corrugated boxes, recyclable/renewable paper bags, and lightweight and thermal paper-based packaging are in high demand due to the shift from single-use plastic packaging and the expansion of online commerce and food delivery.
- Moreover, according to PAMSA, in 2021, South Africa recycled 1.15 million tons of paper and paper packaging, with a paper recovery rate of 61.4%. Paper and paper packaging use grew by 17% annually. In 2021, the nation produced 2.1 million tons of paper and paper packaging, imported 760,000 tons, and exported 545,000 tons, which resulted in a 2.31 million tons apparent use of paper and paper packaging.
- Furthermore, in 2021, the imports of paper packaging containers were valued at around USD 70.31 million, a 13.87% rise in imports from the previous year, 2020, which was valued at about USD 61.74 million. The demand for paper packaging containers in the country is growing due to increased e-commerce packaging, which may necessitate protective packaging for the safety of the product.
