Manufacture of Plastics and Plastic Products in South Africa 2025

This report on the manufacture of plastics and plastic products provides information on the size and state of the industry, including polymer sales, consumption and demand, capacity utilisation, and recycling. It examines growth trends, inventory destocking, shifts in product mix, feedstock security and import protection, as well as notable players, corporate actions and developments. The report also examines regulatory developments and environmental issues, including treaties and plastic bans. There are profiles of 44 companies, including the two major players, Sasol and Safripol, as well as other notable companies such as Mpact, Alpla Packaging, Polyoak Packaging, Transpaco, and Apex Cordset Technologies.

Challenges

Feedstock insecurity. Global oversupply. High raw material costs for plastics converters. Imports of primary plastics and plastics products. Low polymer prices.

Introduction

• Sasol and Safripol account for most polymers produced locally.
• Sasol meets 80% of plastic converter demand for polymers.
• Polymer production makes up just over 40% of Sasol’s South African basic chemicals business and contributes US$2bn to its total revenues.
• Safripol’s 2024 polymer revenue was R9.3bn.
• There are up to 1,800 plastics converters whose combined revenue exceeded R100bn for the first time in 2024.
• Converters, recycling operations and plastic recycling collection provide significant employment.

Opportunities

Agriculture, manufacturing, and construction demand for plastics. Increased role for recycled plastics in new products. Packaging plastics.

Outlook

• Revenue growth in plastics conversion accelerated in 2024.
• Global polymer oversupply is expected to correct by 2026 or 2027, but has led to asset disposals, production cuts, reduced capital expenditure, and a focus on cash generation and debt management.
• Environmental concerns will likely raise costs and prompt petrochemical producers to reduce production.
• Recycled plastics are increasingly displacing virgin polymers in the manufacture of new plastic products.
• Improved economic growth will increase demand for plastics products and recycled plastics, ultimately leading to higher polymer prices.

Trends

Plastics product manufacturers’ revenue and volumes have increased since the pandemic. Plastics recyclate collection and processing rates are increasing. Primary plastics producers are focusing on higher margin products. Producers are focusing on cost cutting, cash generation, debt management and production curtailment.