Markets to explore: South Africa
From the collaboration between ICE-Agency and Edizioni Dativo, the column dedicated to Italian companies operating in packaging and with an attentive eye to the possibility of growth abroad.
Exporting packaging to South Africa (machines and not only)
Along with the most advanced countries in the world, South Africa is very open to innovation and the packaging and wrapping industry is highly developed: indeed, more than 70% of the country’s consumption is by organized largescale retail - a consumption seen to be expanding throughout the SADC (South African Development Community).
The market of today... Overall, the SA packaging sector directly employs some 50,000 people and as many indirectly. It is estimated that processing activities alone account for a turnover of 49 billion rand, with consumption of around 3 million tons. Paper accounts for 30.8% of the volume and 29% of the value; plastic respectively 20.6% and 43.5%; glass for 34.4% and 14%; metal for 10% and 12.6%. For over 40 years the average annual growth rate of the SA packaging industry has been 4.8%: a rate higher than that of the GDP, which only in recent years has registered a slight slowdown. This trend is mainly due to the quality of retail distribution; it is believed, however, that the development of the informal sector of the economy, which sees the progressive involvement of the black population in activities with alternative channels, will represent a further stimulus.
... And tomorrow Analysts believe that in South Africa the evolution of the packaging industry in the near future will stabilize around a + 2.6%, with glass putting in the largest increase and, conversely, metal showing the lowest growth. Moreover, thanks to increased consumer awareness and programs sponsored by the government, the rates of recycling and reuse of packaging are growing.
Overall South Africa represents a market of about 565,000 t/year of which about 370,000 produced by the local industry and less than 200,000 imported. The various segments show different trends. For example the global demand for products in PE is growing between 4 and 5% per annum and is almost entirely satisfied by the great facility recently opened by Sasol in Sasolburg, in the Free State. The system, in place since 2013, will reach its maximum capacity (47,000 t/year) in 2017.
Different the question of the packaging and wrapping machines, which are not subject to duty and are mostly imported from abroad. In 2014 the market share of Italian manufacturers stood at 29% (up from 27% in 2013 but less than the 31% registered in 2012): Thus Italian machine manufacturers have overtaken the Germans that, in this market too, are Italy’s main competitor among quality oriented users.
Italian Trade Commission
42, Chester Road - 2193 Parkwood Johannesburg
P.O. Box 1261 - 2121 Parklands
[email protected] - Tel: (002711) 8808383 - Fax: (002711) 8809040
The main trade fair, Propak Africa, will be held at the Expo Centre in Johannesburg 15 to 18 March 2016
(www.propakafrica.co.za).
The project is coordinated from the ICE-Agenzia headquarters in Rome, out of the Office of Engineering, Chemicals, Energy and Environment, directed by Alessandro Liberatori. Management representative: Matteo Masini, tel. 06.5992.9356, email: [email protected]
