Growing demand for food and drink is driving the market growth
South Africa's population is growing and urbanizing quickly, which is increasing demand for packaged goods. The demand for portable and easy-to-use packaging solutions is rising as more people relocate to cities, which is driving the market CAGR. The world population is expected to grow, which will raise consumption demands and contribute to an expansion in the market for food and drink. The population's increasing discretionary income, which raises their buying power parity, will also help the food and beverage business.
The number of food outlets, supermarkets, and retail stores has expanded worldwide due to rapid urbanization, serving the wealthy suburban population.
Furthermore, international best practices and standards are adopted by multinational corporations operating in the region, which has an impact on customer preferences, packaging design, and material advances in the South African market. As the name implies, rigid packaging is far more durable, inflexible, and strong than converted plastic packaging. Once it takes on a certain structure, it becomes difficult to change. Typically, flexible packaging is composed of paper, film, foil, and plastic. The global telecom boom and the expanding ability of infrastructure to install fiber optic connectivity for improved internet services have both fueled the growth of the e-commerce industry.
Due to the market's large number of phone makers, production costs have decreased, making phones more accessible and affordable for customers. The expanding food and beverage sector, considering the growing population and rising standard of living. According to a recent survey, 64% of South Africans live in cities, and by 2030, this percentage is predicted to rise to 71%. Eight in ten people are predicted to live in cities by 2050.
Urbanization is accelerating, and metropolises—like the expanding Johannesburg, Durban, and Cape Town—are drawing a younger consumer base that is shifting their dietary preferences and purchasing more packaged and processed foods. Additionally, this increases the need for prepared or portable meals, which in turn increases the need for trays, lids, and flexible packaging.
As reported by the United States Department of Agriculture as of July 2023 five significative players dominated the South African retail Food market. They include Shoprite Holdings Ltd, Pick ‘n Pay Retailers Pty Ltd, Spar Group Ltd, Massmart (branch of Walmart) and Woolworths Holdings Ltd. Collectively, they control a striking 80 percentage of the market leaving the remainder 20 percentage to be mostly taken by informal retail channels.
