Consumers in South Africa are being forced to pay more for plastic bags as industry experts warn that increased environmental levies, rising production costs, and stricter regulations could further increase the financial burden on shoppers.
Traderbag, a company supplying eco-friendly paper bags, has urged retailers to review their reliance on plastic. The company argues that the shift to paper packaging observed in online retail demonstrates the existence of practical alternatives.
Traderbag Director Declan Cherry noted that physical stores have adopted paper more slowly despite its growing popularity in other sectors. He explained that in online retail, packaging is part of the customer experience and represents the brand during delivery. While plastic bags are familiar, cheap, and integrated into operational processes in physical retail, this practice requires reconsideration.
Despite plastic bags becoming a routine purchase for many South Africans, Traderbag believes that few consumers realize the true cost of each purchase at the checkout. The plastic levy has increased from 8 cents in 2016 to 32 cents in 2026, yet retailers often charge an amount significantly exceeding the levy itself, charging from the statutory amount up to more than one rand per bag.
Cherry pointed to a lack of transparency in how these levies are calculated. From the consumer's perspective, there is little information about where the money collected as an environmental levy goes or whether it contributes to reducing plastic waste. He added that the current levy may only be a fraction of the total costs, as the price can rise throughout the supply chain due to additional expenses and markups.
Environmental problems remain serious: according to Greenpeace, approximately eight billion plastic bags are used annually in South Africa, with only about 1% being recycled. Cherry questioned whether the levy will achieve its stated environmental goals, noting previous concerns that the collected funds were not adequately directed towards pollution reduction.
Furthermore, the industry faces tightening requirements regarding the content of recycled material. Starting in 2025, plastic bags must contain 75% post-consumer recycled material, and from January of the following year, 100%. Companies failing to comply with these standards may face heavy fines.
Cherry warned that securing a sufficient supply of high-quality recycled material will become a significant challenge. He emphasized that the task is not just about the technical feasibility of using 100% post-consumer recycled material, but also about having a sufficiently large volume of stable and quality material. Large retailers require reliable supplies, consistent durability, print quality, and pricing, considering that plastic can only be recycled two or three times.
Traderbag Director Daniel Cherry advised retailers to act now rather than waiting for increased costs or stricter regulations. He reminded that South Africa has already raised carbon tax rates and fuel-related environmental levies, demonstrating the government's willingness to use taxation to influence behavior and collect revenue. Businesses that delay adopting alternatives may face significant commercial risks, so early testing of paper alternatives will help them prepare both commercially and reputationally.
