Manufacture of Glass and Glass Products in South Africa 2024

This report on the manufacture of glass and glass products in South Africa includes information on manufacturing output and sales, prices, trade, notable players, and influencing factors such as vehicle sales, beverage manufacturing output and construction. There is information on recycling, dumping and relevant tariffs and other measures, environmental issues, technology and R&D, and the effect of loadshedding on an industry which needs to keep furnaces on.

There are profiles of 23 companies including the major players Ardagh, Isanti and PG Group, fibreglass manufacturers such as Nivitex and Cape Composite, and processing and distribution companies including FGW Safety Glass and McCoys.

Introduction

• The glass and glass products manufacturing industry has shown improved performance in the last four years.
• Bolstered by rising producer prices and significant investments by two major manufacturers, revenues have increased since dropping in 2020, and reached an all-time high 2023.
• Capacity utilisation and employment have increased.
• Float glass and mirror dumping remains a threat to the industry.
• The industry has raised the alarm about gas prices, gas policy and security of gas supply.
• It has pinned its future to the increased use of waste glass.

Market Trends

• Exports and employment have increased.
• Imports, particularly the dumping of flat glass products, have been increasing.
• Production has recovered since the pandemic, supported by higher and rising producer prices.
• Strong focus on reducing emissions and the energy cost of glass furnaces.
• The collection of recycled glass has been steadily increasing.

Opportunities

• Exports to the African continent.
• Lower costs and improved energy efficiency through increased cullet use.
• Trends in construction and automotive industries towards safer and more energy efficient glass.

Challenges

• Dumping of flat glass products.
• Fuel source instability and uncertainty of supply.
• Relatively low uptake of glass recycling.
• Sluggish economic growth.

Market Outlook

• International investments have increased local production capacity and secured localisation of beer bottle supply.
• Food and beverage production is growing, supporting demand for glass packaging and containers.
• The industry faces headwinds due to sluggish growth of construction and new vehicle sales.
• It also faces insecurity in energy supply.
• Imports continue to present threats to the local industry.