South Africa Liquefied Petroleum Gas (LPG) Market Overview, 2029

LPG's history in South Africa is one of gradual yet progressive development. Despite its introduction in the early twentieth century, widespread adoption has been stymied by a historic reliance on coal and inadequate infrastructure. The dominance of coal, combined with storage and distribution issues, hampered the development of LPG as a viable energy source. However, shifting cultural attitudes, fueled by increasing urbanisation and worries about energy security, are progressively moving the country toward cleaner options such as propane. As people become more conscious of the environmental and health benefits of cleaner fuels, LPG is becoming a more popular energy source for both residential and commercial applications. In comparison to LPG behemoths like Nigeria and Angola, South Africa's market is smaller yet has enormous growth potential. Leveraging the regional landscape creates chances for collaboration in knowledge transfer and infrastructure development. South Africa can boost its position in the Liquefied Petroleum Gas (LPG) market and benefit from regional synergies by coordinating its efforts with those of its neighbours. According to the research report “South Africa Liquefied Petroleum Gas (LPG) Market Overview, 2029," published by Bonafide Research, the South Africa Liquefied Petroleum Gas (LPG) market is projected to reach market size of more than USD 200 Million by 2029. The drivers and constraints of South Africa's Liquefied Petroleum Gas (LPG) market highlight the complicated terrain in which it works. On the one hand, there is a growing desire for cleaner cooking methods, especially in low-income communities where electrical reliability is an issue. Government measures support this need by promoting LPG as an alternate energy source. Furthermore, the creation of new import infrastructure permits increasing availability of LPG, which meets expanding demand. However, obstacles remain, particularly due to inadequate domestic production, which necessitates a high reliance on imports. This dependency exposes the market to price volatility and supply chain vulnerabilities. Furthermore, the relatively greater cost of LPG compared to traditional fuels such as coal limits its widespread usage. Policy and regulations influence the trajectory of South Africa's LPG sector. The government is actively pushing LPG use, emphasising safety regulations and certification for cylinders and equipment. This regulatory approach promotes consumer safety while also increasing market trust. Furthermore, pricing adjustments are being implemented to improve LPG's competitiveness against other fuels, in line with the government's larger energy and sustainability aims.

LPG is utilised across various applications, including domestic, residential, commercial, agricultural, industrial, transportation, refinery, and chemical sectors. In domestic and residential settings, LPG serves as a versatile energy source for heating, cooking, and other household needs, while in commercial applications, it is commonly employed for heating and powering various equipment and appliances. Agriculture relies on LPG for activities such as crop drying, pest control, and greenhouse heating. In industrial settings, LPG finds extensive use in manufacturing processes, space heating, and as a fuel for machinery and equipment. The transportation sector utilises LPG as an alternative fuel for vehicles, offering a cleaner-burning option compared to traditional gasoline or diesel. Within refineries, LPG is produced as a byproduct of the refining process, extracted through techniques such as crude oil distillation, catalytic cracking, and hydrocracking. Additionally, LPG can be sourced from associated gas, which is natural gas co-extracted with crude oil, or from non-associated gas reserves, where it is found independently of crude oil. This diversity in sources ensures a steady supply of LPG for various applications, supporting its widespread use across different sectors while also offering flexibility and resilience in the face of changing market conditions and demands. The liquefied petroleum gas (LPG) industry is expected to develop significantly in the next few years, with forecasts showing that it might double in size by the late 2030s. This growth trend highlights LPG's growing importance in addressing energy demands, notably in residential, commercial, and industrial sectors. To sustain this expansion, there is an urgent need for increased imports and infrastructural development. However, current trade statistics are scant, reflecting the market's early stages and the constraints associated with data collecting and analysis. In terms of pricing and segmentation, LPG prices are highly related to global crude oil prices and import costs. As the industry matures, it is projected to divide into several segments that cater to diverse consumer needs. These sectors could include large LPG for industrial uses and smaller cylinders for domestic consumption. Nonetheless, full pricing information is still uncommon due to the continual evolution of market structures and the intricacies inherent in pricing dynamics. The country's low natural gas deposits pose a hurdle to South Africa's domestic liquefied petroleum gas (LPG) production. Unlike some countries with rich gas resources, South Africa relies heavily on LPG manufactured as a byproduct of local refineries. However, there is potential for increasing output through a greater emphasis on gas development, which might boost domestic supplies. This transition would minimise reliance on imports while improving energy security. Despite the optimistic future, current Liquefied Petroleum Gas (LPG) marketing efforts in South Africa are modest. However, future expansion is projected to be driven by government initiatives and industry awareness campaigns emphasising the benefits of LPG, such as its cleanliness and adaptability. Effective marketing techniques can increase demand and generate market growth. The impact of the COVID-19 pandemic on the South African Liquefied Petroleum Gas (LPG) market shows significant interruptions in global supply chains and economic slowdowns could have altered market dynamics. Monitoring the situation closely and altering plans accordingly is critical for mitigating risks and capitalising on emerging possibilities in the LPG industry's changing landscape.

Make this report your own

Have queries/questions regarding a report?

Take advantage of intelligence tailored to your business objective

Ask an Expert

Prashant Tiwari

Research Analyst

Considered in this report • Historic year: 2018 • Base year: 2023 • Estimated year: 2024 • Forecast year: 2029 Aspects covered in this report • Liquefied Petroleum Gas (LPG) market Outlook with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By Application • Domestic • Agriculture • Industrial • Transportation • Refinery • Chemical

Don’t pay for what you don’t need. Save 30%

Customise your report by selecting specific countries or regions

Specify Scope Now

By Source • Refinery • Associated Gas • Non-associated Gas The approach of the report: This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Liquefied Petroleum Gas (LPG) industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.