The metal packaging market is expected to record a CAGR over 4% over the
forecast period (2019-2024).
According to the Population Reference Bureau, in 2018, the degree of
urbanization across the world was at around 55%. The shrinking size of
the family, along with changing patterns in lifestyle, including the
declining amount of time spent on preparation of meals and consumption
at home, is leading to a shift toward more processed, frozen, and
pre-prepared foods, in which canned foods is the most common form of
packaging.
The metal packaging holds the largest market share of these foods.
However, the metal packaging market is expected to witness fierce
competition from substitute flexible plastic packaging products.
Aerosol cans have been a significant driver for the market, witnessing
increased adoption in the automotive, cosmetics, industrial and
household care sector. Europe is one of the largest producers of
aerosol globally due to the favourable business environment
encouraging firms to establish manufacturing facilities in the region.
Further, new production technologies coupled with an increasing number
of product launches have buoyed the market growth.
Augmenting this trend, recently, Nivea launched a new product range in
the deodorant segment, boasting a taller and sleek shaped aluminum
aerosol that was designed by Beiersdorf and manufactured by Ardagh
Group. Ardagh's metal division investigated various cutting-edge
technologies for aerosol can production. As a result, the company set
new standards for high-quality metal packaging for the personal care
sector.
Reuse is a major trend in metal packaging because of the increased
pressure to prolong the lifecycle of finite resources through the
re-use of containers. In contrast to consumer applications, many
industrial packaging markets benefit from a highly effective and
well-established infrastructure for products, like reconditioned drums
to maximize repeat use. This has been a major driver for the adoption
of steel, which has been proven in numerous studies to be less harmful
to the environment than the extraction of virgin ore.
Key Market Trends
Beverage Expected to Hold a Significant Share
The beverage sector is dominated by the use of aluminum and steel
cans. However, with the on-going trend of convenient packaging, the
demand for flexible stand-up pouches is on the rise. This growth is
also attributed to the use of metal caps and closures for various
beverage products.
Aluminum packaging for beer, carbonated soft drinks, and energy drinks
has increasingly dominated over other product segments, such as
sparkling wines, iced teas, and coffee-based refreshments. The
recycling rate for used aluminum beverage cans in Europe was 71.3% in
2017; the European Union aims to reach a recycling target of 80% by
2020. With the capability of saving up to 95% energy of primary
production by recycling, aluminum beverage cans are contributing
incessantly to sustainability.
Beverage can manufacturers have lightened the package by reducing the
gauge required to fabricate the cans. Metal cans can support the
carbonation pressure that is required to package soda and resist
pressures up to 90 pounds per square inch. As a matter of fact, four
six-packs are capable of supporting a 2-ton vehicle, making them a
more favored choice of packaging for the beverage industry.
North America Expected to Hold the Largest Share
North America is expected to hold a major market share in the metal
packaging market, mainly due to the presence of strong food & beverage
industries. According to the Association for Packaging and Processing
Technologies, the United States food industry is forecast to grow at a
steady rate of 2.9% through 2022.
Moreover, the United States is also one of the largest manufacturers
of aluminium cans, which consumes an average of 380 types of beverages
in aluminium cans every year that are majorly used for beverage
packaging.
Around 95% of all beer and soft drink cans in the United States are
made of aluminum. American can makers produce around 100 billion
aluminum beverage cans a year, which is equivalent to one can per
American per day.
The growing urban population coupled with the increasing number of
households, have been instrumental in bolstering the growth of canned
food products, which is expected to influence the growth of the metal
packaging market. According to UN DESA, it is estimated that 89.2% of
the total population in the United States will live in urban areas.
Competitive Landscape
The metal packaging market is highly competitive and consists of several
major players. Many companies are increasing their market presence by
introducing new products, by expanding their operations or by entering
into strategic mergers and acquisitions.
April 2019 - Ardagh Group expanded its production at Jacare and Manaus
can and end facilities, respectively. These projects aim to meet the
growing demand of its customers for infinitely-recyclable and
sustainable aluminium packaging. These investments are consistent with
the company's commitment to supporting the growth prospects of the
Brazilian can market.
February 2018 - Ball Corporation announced to build a one-line
beverage can and an end manufacturing plant in Asuncin, Paraguay. This
expansion would allow the company to serve the growing beverage can
market in Paraguay, Bolivia, and Argentina.
Key Topics Covered
1 INTRODUCTION
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Introduction to Market Drivers & Restraints
4.3 Market Drivers
4.3.1 Advancements in Aerosol Dispensing Technologies
4.3.2 Increasing Adoption of Green Packaging Solutions
4.4 Market Restraints
4.4.1 Threat from Flexible Plastic Substitutes
4.5 Industry Attractiveness - Porter's Five Force Analysis
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