Good news for plastics industry

South Africa’s plastics manufacturing and recycling industries grew by 4.7% last year, indicating a welcome recovery from the devastation caused by the Covid pandemic.

Plastics SA’s Executive Director, Anton Hanekom, announced the latest production and recycling figures for the fiscal year ending December 2021, revealing that 1 904 924 tons of polymer were converted into new plastics products this year.

“This is the total amount of polymers produced locally, net imported polymers, and recycled polymers sold locally by converters. Locally recycled polymer made up 21.7% of virgin consumption, up from 20.6% in 2020. This growth is consistent with the country’s 4.9% growth in Gross Domestic Product (GDP) during the same period,” Anton says.

The polymer consumption in South Africa is calculated using both locally produced virgin tonnages and imported/exported polymers as recorded by the South African Revenue Services (SARS). Plastics recyclers who sell their recyclate into the local market provide data on recycled polymer consumption. Domestic polymer consumption is limited to polymers that have been locally converted into plastics and semi-finished products.

Market Sectors

The packaging sector continues to make up half of the overall plastic polymer consumption in South Africa – 29% for rigid packaging and 21% for flexible packaging. This is followed by the building and construction sector as the third biggest market at 14%.

“South Africa is not a packaging powerhouse – it is more the country’s weakness in the non‑packaging sector that should be highlighted. Despite the fact that the poor exchange rate and logistical challenges encountered in 2021 provided a much-needed boost to certain non-packaging related markets, these sectors are lagging behind the rest of the world. The demand for rotationally moulded water tanks peaked in 2019 and 2020, but we saw a decline last year. Agriculture and automotive/transportation applications now only make up 7% of the domestic market. However, as a direct result of local sourcing by Original Equipment Manufacturers (OEMs) and brand owners, there has been a slight increase in mining, engineering, and electric applications in their respective market sectors,” Anton reported.