- Fundamentals of the consumer market continue to improve on the back of growth in GDP and Personal Consumption Expenditure
- Stable GDP growth outlook
- Household consumption expenditure supported by recovery in household net wealth, lower debt service costs, strong wage growth and low inflation
- Consumer confidence remains elevated and consumption growth remains relatively strong
- Real wage growth
- Positive correlation between increasing wealth (GDP/capita) and packaging consumption
- South Africa provides a platform to access other Southern African markets which also present attractive fundamentals
- Consumer fundamentals and personal consumption expenditure is expected to be underpinned by structural changes in the South African economy including:
–Fundamental migration of consumers from lower Living Standards Measure (‚LSM‛) to higher LSMs
–Continued trends of urbanisation
- LSM Migration: since 2001, have seen a 45% decrease in consumers in LSM 1-3 level, 40% increase in LSM 6-8, and 36% increase in LSM 9-10.
- SA Urbanisation expected to reach 63% in 2014
Mpact is a recent unbundling from Mondi... details here.