Consumption of standard thermoplastics in South Africa is forecast to grow by an average of 4.7% per year over the next five years, boosted by rising demand for packaged foods, according to Frost & Sullivan (London / UK; www.chemical.frost.com). Consumption – comprising locally produced and imported plastics products, including recycled plastics – is predicted to reach 1.95m t in 2017, the market research company says in a report entitled “Analysis of the commodity plastics market in South Africa”.

“Increased manufacturing activity as a result of demand from the growing middle class and growing population is expected to drive plastic packaging and will therefore continue to be the biggest application area,” says Frost & Sullivan. “Packaging foods is seen to limit waste of food and beverages in a country where we cannot afford to be losing food products.” Packaging is estimated to account for approximately half of South Africa’s commodity plastics consumption.

Other factors boosting the country’s commodity plastics demand include increased use of plastics for construction and infrastructure projects and rising demand for innovative packaging products. Constraints to growth include skills shortages, relatively slow technology upgrading, high energy costs and competition from imports.

The national market for plastics is well developed at all levels of the value chain and has a large potential for local development and innovation, primarily in the packaging and construction sectors, says the report. Per capita consumption is estimated at just over 30 kg, based on plastics consumption of about 1.6m in 2012. Recycled plastics accounted for 268,500 t in 2012, the report says.

Looking at the types of plastics converted in South Africa (but not necessarily consumed in the country), PE accounted for 43.5%, while PP accounted for 27.8% and PET accounted for 10.4%. PVC represented 10.5%, while PS accounted for 7.8%.

Approximately 0.5% of the country’s GDP and 3.2% of manufacturing revenues come from plastics manufacturing. There are some 1,800-2,000 companies in the plastics converting industry, employing more than 60,000 workers.