Page 68 - Glass Machinery Plants & Accessories no. 5-2019

COUNTRY OUTLOOK
Country outlook
HE SOUTH AFRICAN study. The country’s winemakers industry. Consol Glass, the older
CONTAINER GLASS are winning new markets around and bigger of two accounts for
TINDUSTRY the world, which has proved a about 75-80 per cent of the
Over the last few years, South boom for container glass produc- domestic container glass market.
Africa has become one of the ers in the country. Nampak Glass accounts for the
largest container glass producers The country’s beer industry remaining 20-25 per cent of the
and consumers on the African is one of the largest contribu- container glass demand in the
continent. Two container glass tors to container glass consump- country.
producers, who operate a total tion as South Africa remains a
of five container glass plants, beer drinking nation. Beer sales CONSOL GLASS
account for the entire production totalled ZAR 54.7 billion in 2017, Consol Glass is the largest
of container glass products in the with 3.2 billion litres consumed. glass-packaging manufactur-
country. 77.7 per cent of all alcohol con- er in South Africa. The com-
In 2018, the container glass sumed in 2017 was beer – while pany has over half a century
industry registered modest it accounts for 54.6 per cent of glass-manufacturing experi-
growth as the economy con- of the market share in terms of ence. Consol Glass operates four
tracted and pressure on dispos- value. The beer market, in terms container glass plants in South
able incomes increased due to of both volume and value is larger Africa. The company has opera-
an increase in VAT to 15 per than all other alcohol categories tions in Clayville (Midrand),
cent, fuel price hikes and higher combined. Africa is one of the Wadeville (Germiston), Nigel
levels of unemployment. South most exciting beer markets glob- (Johannesburg) and Bellville
Africa entered a technical reces- ally. It has been forecasted to be (Cape Town), with a total pro-
sion in the second half of year the fastest growing beer market duction capacity of 855,000
2018, which impacted consumer over the next five years. Africa’s tonnes of glass per annum.
demand and thereby container beer market is said to be worth The company provides glass-
glass demand. Slowdown in USD 13 billion and has shown packaging solutions for a number
South African economy increased year-on-year growth. Despite of industries, including beer, wine,
the volume of container glass recent economic headwinds on food and spirits, and packaging
exports by 31.5 per cent based the continent which has slowed for pharmaceutical and cosmetic
on value. The country exported growth in many other sectors, the products to a range of local and
container glass worth USD 60.5 beer industry on the continent international customers.
million to a number of regional continue to grow steadily. Consol Glass also operates
countries. container glass plants in Kenya,
South Africa’s wine industry, CONTAINER GLASS Nigeria and Ethiopia. These three
which has made a name for itself MANUFACTURERS IN SOUTH plants have installed capacities of
in recent years in the global AFRICA 37,000, 40,000 and 40,000 tons
wine market has been one Two leading con- per annum of container glass
of the catalysts of con- tainer glass produc- products, respectively.
tainer glass demand ers dominate the The Ethiopian container glass
growth in last few South African plant started up in the last quar-
years. South Africa is container glass ter of year 2018. Designed to
the world’s 7th larg-
est wine producer. Its
vineyards account for
4 per cent of global wine
output, and volumes have
increased 20 per cent over
four years to about 420 million
litres annually. South Africa’s
wine sector, which dates back to
the arrival of the first European
settlers in the 1650s, employs
300,000 people directly and
indirectly and contributed about
USD 3 billion to the economy in
2017, according to an industry

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