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South Africa Glass Packaging Market - Growth, Trends, COVID -19 Impact, Forecasts (2021 - 2026)

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  • 120 Pages
  • October 2021
  • Region: South Africa
  • Mordor Intelligence
  • ID: 5459056

The South Africa Glass Packaging Market is expected to register a CAGR of 4.5% during the forecast period. With the outbreak of the COVID-19 pandemic in the country, the South African alcohol market has witnessed a three-time ban on alcohol sales, which reduces glass bottle manufacturing. In December 2020, The South African government imposed a third domestic alcohol sales ban as COVID-19 cases surge. However, the third time ban excluded alcohol exports.

Key Highlights

  • The stringent government regulations regarding the restrictions on the usage of PET material for pharmaceutical packaging further increasing the attractiveness of glass packaging for the pharmaceutical industry.​
  • Further, Piramal Enterprise announced using eco-friendly power supplies and recycled glass to reduce our overall energy consumption and carbon footprint, thus contributing to a safer and greener work environment. Recently, it also developed thin, lightweight glass bottles, further decreasing its energy and raw material consumption.
  • One of the country's significant drivers of glass packaging is that the local pharmaceutical players stopped using plastic bottles. This is expected to create a massive opportunity for companies to produce glass or biodegradable bottles.
  • Moreover, multiple vendors in the market are expanding themselves in terms of eco-friendly packaging. TEQAL, based in KwaZulu-Natal, produces quality packaging for the cosmetics, personal care, and industrial markets introduced the first biodegradable packaging developed and produced locally for premium face care products. The company also has been awarded an R50-million financing facility by the IDC to expand its factory at the Dube TradePort Special Economic Zone.

Key Market Trends

Glass Bottles and Containers Expected to Witness Significant Growth

  • The pharmaceutical industry widely uses glass bottles in South Africa. The industry is expected to foster future growth for the market. The fact that investment firms such as Kwande Capital are investing in South Africa points to the potential growth opportunities of the glass packaging market in the future.
  • The growing alcohol consumption in the country is significantly contributing to the growth of the glass bottle market. According to World Population Review, the per capita consumption of alcohol in the country is 29.9 liters per year, the 6th highest consumption rate globally.
  • Further, In June 2021, President Cyril Ramaphosa announced a 14-day total ban on liquor sales in a bid to limit trauma cases related to alcohol consumption amid a surge in COVID-19 cases, driven by the highly transmissible Delta variant first detected in India. Such regulations are anticipated to affect the market for glass bottles.
  • Additionally, zero-packaging stores across South Africa are further expected to reduce glass in packaging readymade materials sold through retail. Moreover, investment firms such as Kwande Capital are investing significantly in South Africa, which points to the potential growth opportunities of the glass bottles and containers market.

Personal Care Expected to Witness Significant Growth

  • The cosmetics industry is facing several challenges in South Africa due to the weakening economic conditions of the country. The country’s GDP growth has slowed down significantly. Also, high unemployment and less personal disposable income are certain factors creating challenges for the cosmetic industry. Hence, the cosmetic packaging market is expected to exhibit a slow growth rate in the country.
  • Furthermore, in Apr 2020, African e-commerce major Jumia re-worked its online portal to provide essential items during the ongoing coronavirus (COVID-19) crisis, working with Reckitt Benckiser and Proctor & Gamble on the project. The partnership is expected to increase glass packaging demand in the country.
  • However, the growth in the cosmetic sector is primarily driven by several technological advancements, social media penetration, and e-commerce growth, which are majorly affecting the consumers' buying preferences in the country. Also, the increasing inclination toward the aesthetic value of cosmetics is further augmenting the cosmetic packaging market in the country.
  • Owing to the increasing penetration of several cosmetic brands in the country, it also witnessed several investments from global packaging solution providers. For instance, in the recent past, Beta Glass received USD 30 million investment to boost its furnace plant capacity, situated in Agbara, Ogun State. This investment is expected to increase glass packaging in the country.

Competitive Landscape

The South Africa Glass Packaging Market is moderately competitive, with a considerable number of regional and global players. Players in the market adopting strategies such as product innovation, partnerships, mergers and acquisitions to increase their market share and further recyclability driving the market.

  • March 2021 - SGD Pharma announced the updated version of the Type I molded glass vial range, available in three market-driven offerings, each offered to satisfy different needs and parenteral drug specifications. The offering provides pharma and biopharma companies with products and services solutions that meet the needs of their therapeutic applications, drug properties, and business environment.
  • January 2021 - Frigoglass S.A.I.C. announces that the Company's beverage coolers supply agreement with Coca-Cola HBC AG, extended until December 31, 2025. Further, Frigoglass has a strong presence in more mature regions while still expanding and establishing itself in emerging areas.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

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Table of Contents

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitutes
4.2.5 Intensity of Competitive Rivalry
4.3 Impact of COVID-19 on the South Africa Glass Industry
5.1 Market Drivers
5.1.1 Rising Demand for Glass Packaging in Pharmaceutical Industry
5.1.2 Commodity Value of Glass Increased with Recyclability
5.2 Market Challenges
5.2.1 High Carbon Footprint due to Glass Manufacturing
6.1 By Type
6.1.1 Bottles/Containers
6.1.2 Vials
6.1.3 Ampoules
6.1.4 Jars
6.2 By End-user Vertical
6.2.1 Pharmaceuticals
6.2.2 Personal Care
6.2.3 Household Care
6.2.4 Agricultural
6.2.5 Other End-user Vertical
7.1 Company Profiles
7.1.1 Amcor
7.1.2 Frigo Glass
7.1.3 SGD Pharma SA
7.1.4 Saver Glass, Inc.
7.1.5 Corning Incorporated
7.1.6 Vidrala SA
7.1.7 Reynolds Packaging
7.1.8 Nipro Corporation
7.1.9 Consol Glass
7.1.10 Piramal Glass Private Limited

Companies Mentioned (Partial List)

A selection of companies mentioned in this report includes, but is not limited to:

  • Amcor
  • Frigo Glass
  • SGD Pharma SA
  • Saver Glass, Inc.
  • Corning Incorporated
  • Vidrala SA
  • Reynolds Packaging
  • Nipro Corporation
  • Consol Glass
  • Piramal Glass Private Limited