Organized retail growth to spur South African packaging market

The packaging market in South Africa is expected to grow at a CAGR of nearly 7% from 2015-2019, according to new industry analysis from research firm Technavio. The report noted a marked increase in demand for packaged goods, particularly in the food and beverage sector in South Africa.

Organized retail in South Africa is growing at a steady pace due to the economic growth, rising disposable income, falling unemployment, increasing urbanization and the emergence of a strong middle class. Surge in demand secondary packaging during transit of goods has also been noted due to increase in online shopping.  

The new market research report by Technavio also emphasizes the growing importance of sustainable packaging. Sustainability is one of the major movements being pursued in the packaging industry and consumers expect packaging materials to be environmentally friendly and sustainable. Vendors are also seen to invest more in R&D to develop packaging materials that can be recycled but have the traditional capability to resist heat, moisture and friction.