Market Trends of Asia Pacific Metal Cans Industry
This section covers the major market trends shaping the APAC Metal Cans Market according to our research experts:
Canned Food to dominate market share
- The growing trend in the canned food market is innovations in packaging. With an increase in demand for chemical-free canned foods, manufacturers are focusing on innovations in packaging. Many brands of canned food products have started offering food in BPA-free containers.
- The demand for sealed and tamper-proof steel container food is high, as they protect food from harmful bacteria. Also, due to the hectic and busy lifestyles of consumers, canned food is expected to gain more importance.
- Pet food packaging can significantly influence the quality and safety of the food product through the provision of barriers to moisture and other environmental conditions that may result in contamination and spoilage. Metal is predominantly used in pet food packaging, including tin or aluminum, and it is sealed tightly so no food, odors, or leaks can escape.
- Limited design flexibility and inconvenience in opening the cans have been the significant disadvantages for metal pet food cans. This segment is making an effort to increase its competitiveness by emphasizing the safety of steel cans and their environmental friendliness, owing to their recyclability and use of recycled content. Pet food packaged in metal cans is preferred over that packaged in plastic alternatives due to the tight seal and tamper evidence in cans.
- Other advantages include its low cost, long shelf life, durability, and amenability to wet food products. Additionally, the presence of easy opening ends is expected to support continued opportunities. Fast-filling speeds and line efficiencies of metal food cans also make manufacturers reluctant to shift production to plastic alternatives, which are slower to manufacture and involve added production costs.
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India to Witness Significant Growth
- In the beverages segment, soft drinks are considered to be prime adopters of metal cans for packaging solutions. According to a report by PepsiCo India's bottling partner Varun Beverages Ltd, the Indian soft drink market may continue its growth trajectory, as the annual per-capita bottle consumption will reach around 84 by 2021.
- The recent regulation on the ban of single-use plastics is expected to grow plastic packaging growth, which is expected to be enforced in the future once the discussion with all the stakeholders gets concluded. The Food Safety and Standards Authority of India is in the process of reviewing the ban on the use of single-use plastic materials to accommodate the use of eco-friendly alternatives.
- With the growth of the alcoholic and non-alcoholic beverage market in the country, the demand for metal can packages is expected to increase significantly in the country. For instance, according to the Craft Brewers Association of India, the number of microbreweries in India galloped from 20 to 120 in the past five years.
- The consortium, called the Aluminum Beverage Can Association of India (ABCAI), advocates replacing plastic and glass with aluminum as packaging material. Moreover, the use of aluminum cans in the country is 5%, and the association's objective is to help its growth to reach about 25% by 2030.
- Moreover, the proliferation in the beer market by newer companies in the country is helping the Indian metal can segment. Ball Corporations also provides metal cans that meet the requirement of beverage products, with an annual capacity of 1.3 billion cans in India. According to the Ball Corporation, the consumption in India is less than one can per capita, which presents a massive opportunity for metal packaging providers to tap into the emerging market.
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