Aluminum Beverage Packaging Market Trends

Growth Drivers

• Growing Concern for the Environment to Drive the Growth of the Global Aluminum Beverage Packaging Market - According to the statistics by the United States Environmental Protection Agency (EPA), total landfills caused by plastic containers and packaging municipal solid waste (MSW) in the United States increased from 120 thousands of U.S. tons in the year 1960 to 10,090 thousands of U.S. tons in the year 2018.
  
  Beverage packaging is done either by using metal packaging materials or by using polyethylene terephthalate (PET). One of the major drawbacks of single-use plastics is the non-biodegradable nature, which as a result takes centuries to decay. Further, PET bottles that are used for packaging beverages are known to be susceptible to oxidation, and hence cannot be used to store alcoholic beverages. Moreover, PET bottles are also known to contribute to the increasing landfills as these plastics can only be down-cycled and cannot be recycled in whole unlike aluminum, which can be recycled in total. This as a result is raising the need amongst the manufacturers in the beverages industry to prefer sustainable packaging methods, such as aluminum beverage containers for packaging different beverages. Moreover, increasing awareness amongst the end-users for the benefits of aluminum packaging, coupled with the stringent government norms for regulating the use of plastics, are some of the additional factors anticipated to drive the aluminum beverage packaging market growth. For instance, in May 2019, one of the subsidiaries of Aditya Birla Group, Hindalco Industries Ltd., announced a partnership with leading aluminum can manufacturers, Can-Pack India Pvt. Ltd., and Ball Beverage Packaging (India) Pvt. Ltd., to form a consortium called the Aluminium Beverages Can Association of India (ABCAI) which is aimed to build sustainable aluminum beverage packaging practices, raise awareness for the benefits of aluminum beverage can packaging, and increase the annual per capita beverage can consumption to 8 cans from 1 can by the end of 2030.

Challenges

• Fluctuating Prices of Aluminum to Hamper the Market Growth - Over the past few decades, the price of aluminum has differed significantly. As a result, this has impacted the overall manufacturing cost of the aluminum beverage container manufacturers, thereafter raising the cost of the aluminum container. Such a factor is therefore anticipated to hamper the aluminum beverage packaging market growth in the coming years.