Aluminum Cans Market Overview
Aluminum cans are one of the most popularly used products for packaging food and beverages. These cans are also used for packaging products such as oils, chemicals, and other liquids. Aluminum cans are lightweight, strong, affordable, and consistent. These cans also act as exceptional barriers against air, light, and moisture. As a result, these cans are known to be ideal extenders of product shelf life.
The global aluminum cans market is anticipated to record a CAGR of close to 4% during the forecast period 2019-2024. The market registered a value of around USD 45 billion in the year 2018 and is further projected to touch USD 56 billion by the end of 2024. The market is further anticipated to grow on account of the rising opportunities generated by the expanding e-commerce industry, which has provided greater accessibility to customers for purchasing various products, such as food, beverages, cosmetics, and others. Many of these products require aluminum cans for packaging, which is anticipated to contribute to the market growth.
Regional Growth Highlights
The global aluminum cans market is segmented by regions into North America, Europe, Latin America, Asia Pacific, and Middle East & Africa. Among these regions, the market in Asia Pacific is expected to hold the largest share of nearly 34% by the end of 2024. The market in the region registered a volume of around 150 billion units in the year 2019 and is expected to grow with a CAGR of nearly 4.5% during the forecast period. The growing population in the region, coupled with the rising disposable incomes of the individuals are raising the demand for aerated beverages, energy drinks, and other canned food items. These food items are mostly available in aluminum can packaging, which is anticipated to drive the growth of the aluminum cans market in the region. Additionally, a rising number of initiatives by the government of the nations in the region to focus on the replacement of packaging substitutes, such as plastic, PET bottles, and others with easily recyclable aluminum cans are further anticipated to promote the market of aluminum cans in the Asia Pacific region.
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Market Segmentation Synopsis
By Application
The global aluminum cans market is segmented based on application into beverages, foods, and others. Among these segments, the beverages segment accounted for the largest market share of around 80% in the year 2018. This segment is further anticipated to grow with a CAGR of nearly 4% during the forecast period. Aluminum cans are a preferred choice for the packaging of both carbonates/non-carbonates beverages, such as soda, beer, cider, fruit juice, and other caffeinated drinks. Owing to the numerous favorable properties of these cans, they find wide utilization in the beverages industry. Moreover, aluminum cans are also easily recyclable and help to reduce carbon emissions. As a result, beverage manufacturers are switching towards the use of aluminum cans instead of using hazardous packaging materials, such as plastics and other non-biodegradable materials. Such factors are anticipated to drive the growth of the beverages segment in the global aluminum cans market.
Market Drivers & Challenges
Growth Indicators
Increasing Awareness of RTD Beverages to Drive Market Growth
In recent years, the ready-to-drink (RTD) beverage industry has shown remarkable growth, backed by the busy lifestyles of individuals, rising urbanization, and new product launches, among others. The manufacturers of ready-to-drink (RTD) beverages prefer using aluminum cans to store the drink as these cans provide greater packaging efficiency in terms of lower transportation costs and substantial brand engaging benefits. Additionally, the manufacturers of RTD beverages can use alternative coatings inside the aluminum cans depending on the type of the beverage so as to increase the shelf life of the product. Such factors are anticipated to drive the growth of the global aluminum cans market.
Numerous Benefits of Aluminum Cans to Promote Market Growth
Aluminum cans are widely manufactured by its manufacturers as the production capacity of manufacturing aluminum cans is scalable, which helps the manufacturers to constantly alter their production capabilities to match the variations in the demand for the product from its end users. On the other hand, aluminum cans possess several favorable properties, such as easy recyclability, is lightweight, provides greater shelf life to food products, and can be used across a diverse range of applications. Aluminum cans are a preferred choice amongst the manufacturers of food products as it helps the food manufacturers to leave around less or almost no carbon footprint, help them to lower their transport costs, and further increase and protect the shelf life of food and food products. Owing to such factors, the demand for aluminum cans amongst the end-users is significantly high, which is anticipated to drive the growth of the global aluminum cans market.
Challenges
Availability of Substitutes to Hamper the Market Growth
In the recent past, several lower-cost alternatives for aluminum cans, such as plastic, glass, paper, and others have been developed that carry their own advantages and disadvantages. These substitutes have found a remarkable growth in their consumption from the end-user industries as they cost very low both to the manufacturers of these substitutes as well as to the end-users. Moreover, the fluctuating prices of raw materials that are used to manufacture aluminum cans, have a direct impact on the price of the product. As a result, the end-users are looking out for cheaper alternatives that can help them lower their end-product cost. Such factors are anticipated to hamper the growth of the global aluminum cans market.
Top Featured Companies Dominating The Market
Some of the affluent industry leaders in the global aluminum cans market are Ardagh Group S.A., Ball Corporation, Crown Holdings, Inc., Amcor plc, and COFCO Packaging Holdings Co., Ltd.
