India Metal Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The India Metal Packaging Market is segmented by Material Type (Aluminum, Steel), Product Type (Cans, Bulk Containers, Shipping Barrels and Drums, Caps and Closures), and End-user Industry(Beverage, Food, Industrial, Cosmetic and Personal Care, Paints and Varnishes, Automotive, Household).

Market Snapshot

India Metal Packaging Market Overview
Study Period: 2019- 2026
Base Year: 2021
CAGR: 6.52 %
India Metal Packaging Market Key Players

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Market Overview

The India Metal Packaging Market is expected to register a CAGR of 6.52% over the forecast period from 2021 to 2026. Recyclability of metal packaging is one of the significant factors expected to drive the global metal packaging market over the forecast period. Like aluminum and steel, metal packaging materials are the two most robust raw materials for packaging due to the superior recycling infrastructure. Recycling one aluminum can save enough energy to run a television for three hours. With the growing middle-income group population, changing lifestyles, and evolving consumer preferences, India's consumption rates are rising steadily.

  • The consortium,of Hindalco Industries Ltd, a company of the Aditya Birla Group, Can-Pack India, and Ball Beverage Packaging (India), 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 about 25 % by year 2030. Also, with the increasing consumption of alcohol, the usage of metal caps and closures is rising.
  • India is one of the fastest growing alcoholic beverages markets globally with an estimated market value of USD 52.5 billion (about INR 3.9 lakh crore), and is expected to grow at a CAGR of 6.8 per cent till 2023 (source: Indian Council for Research on International Economic Relations (ICRIER)).
  • Moreover, the rise in the market for chemicals and petroleum lubricants from varied end-user industries and a mounting focus on strengthening the supply chain capability are expected to drive the need for industrial metal drums. According to Infraline Energy, India is the second-largest lubricant consumer in the region, and the third-largest in the world, after the United States and China. During FY 2017-2019, India exported 13,000 metric tons of lubricants, and its production also increased from 2017 to 2018. This refers to the demand for and usage of metal drums and bulk containers in India. Factors owing to which metal packaging is a preferred choice of many paint manufacturers include toughness, extended shelf lives of metals, effective sterilization, and efficient airtight packaging
  • Several global companies plan to enter the Indian market through significant investments in their local manufacturing plants. For instance, in June 2019, Ball, a US-based supplier of metal packaging, supplies beverage can units to companies such as PepsiCo and Coca-Cola, their primary customers in the Indian market. The company plans to grow its business in India, as it provides several growth opportunities owing to growth in modern trade and increasing urbanization. However, the increased usage of bioplastics, such as bagasse and other materials, in the food and beverage industry is a critical challenge in the growth of metal containers.
  • In an attempt to combat the COVID-19 outbreak in India, the packaging material choices are also expected to be affected significantly. Packaging designs and materials which will address the hygiene and consumer safety concerns and minimize the possibility of the survival of the virus on the packaging material are expected to be certain factors while deciding the packaging material. Hence, the adoption of metal packaging is likely to be on the rise, owing to its chemical properties.
  • A big challenged faced by the soft drinks industry is that there is corrosion of soft drinks that are in aluminium cans and it results in losses in money. Furthermore, metallic elements also cause severe health complications in food. Acidic foods like tomatoes could be significantly affected by aluminium in case metal is used for storing them. This results in ruining the taste as well as the quality of the food. Such factors are restraning the market growth.

Scope of the Report

Metal packaging is critical to the sustainable development of human civilization. Metal, being a permanent material, ultimately retains its properties even after infinite recycling, reducing resource wastage significantly. Metals like aluminum are very easy to sterilize for packaging purposes. The durability and high barrier protection make it an excellent choice for packaging materials.

Materials Type
Aluminum
Steel
By Product Type
Cans
Food Cans
Beverage Cans
Aerosol Cans
Bulk Containers
Shipping Barrels and Drums
Caps and Closures
Other Product Types
By End-User Vertical
Beverage
Food
Industrial
Cosmetic and Personal Care
Paints and Varnishes
Automotive
Household
Other End-user Verticals

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Key Market Trends

Cans are Expected to Hold Significant Share

  • Among different kinds of metal packages, cans, drums, bottles, caps, and closures, can have been the most popular. Ease of use and availability aided in the adoption of metal cans in several packaging applications over the last century. Additionally, consumer trends, such as a preference for small-size and multi-pack packaging formats, support the volume growth of the metal cans demand. 
  • Increasing demand for mini-cans has been observed, especially in the Asia-Pacific markets, such as India. Therefore, most beverage companies in the country offer mini-cans, which generally contain smaller volumes of products and cost less than traditional canned products. 
  • The demand for can-packed products would sharply rise, given the increasing emphasis on recycling and sustainable solutions. For instance, Alcohol in 180 ml cans was recently in 2021 was introduced in Rajasthan, India by Ball Beverage Packaging. Overall, the demand for beer is expected to increase post-pandemic in the years and can compensate the loss it occur in the year 2020
  • Further, Two-piece cans and three-piece cans are typically available in aluminum, tin plate, and steel. The usage of cans is dependent on its application and industries. The can type differ depending on the market and the product application and is used for products such as fish cans, cheese cans, beverage cans, etc. Steel cans are usually preferred as they can be recycled at a faster rate. Aluminum two-piece cans are also used as aluminum can be drawn quickly and hence used in aerosols, home fragrance, etc. The use of aerosol in India is growing well, especially aluminum aerosol. Ball Corporation has already entered India, and soon, India is expected to become one of the largest production houses globally. Plus, the decorative cans market is also picking up India.
  • According to Massilly India Packaging, three-piece cans’ per capita consumption in India is very low compared to France. It is used for packaging milk and other decorative cans. The expenditure in India is 1/20 when compared to France and is 1/100 when compared to the USA. It is because the use of canned food is not the Indian culture, but the scenario is slowly changing. With the increase in micro families and working lifestyles, there is no time to cook. This factor is expected to stimulate the growth of processed food in the Indian market due to which the three-piece food cans have a high potential to grow.
  • Hindustan Tin Works Ltd offers its general line cans that are made out of the tin and not only provide highest barrier properties from oxygen, moisture, and bacteria but also act as excellent barriers from rodents and other pests to ensure that the products are safe inside the pack till it is finally consumed. These cans are used for baby food, protein powder, coffee, ghee, other powdered products, etc. These are available in a diameter range of 65-174 mm.
India Metal Packaging Market Key Trends

Growing Demand from the Food Industry

  • Covid-19 has significantly changed the requirements of the food industry. The restaurants are closed, so people eat at home and buy small packs of food that are ready to eat. In Post-Covid, this trend may continue. It is also recognized that metal packaging is recyclable, and eco-friendly products packed in metal containers have a long shelf life and can be stored at ambient temperature. This will steadily increase demand from the food industry.
  • Sweets and other items are already packed in metal packages such as rasgulla, milk powder, oils, and beverages. For hygiene and product safety, more and more items are packed in metal packaging. Growth in this sector is expected for both cans and components. As far as cans are concerned, companies like Hindustan Tinworks Limited continue to manufacture food and non-food products. In the food category, cans are used for packaging dairy products, baby foods, processed foods, juices, etc., and in non-food categories, cans are used for paints, shoe polishes, disinfectants, indoor refreshers.
  • The recognition of metal packaging in India is very low, so metal packaging in India is just about 10,000 crores business. The Association of Metal Container Manufacturers of India (MCMA) emphasizes the advantages of metal packaging over other packaging materials. This is expected to result in significant growth in metal packaging.
  • Metal packages are divided into aluminum and tin. Aluminum is used primarily in the beverage sector, consisting of beverages and beer, while tin containers are used in all other foods and juices. The food processing industry is strongly driven by the Government of India, which can generate a significant share.
India Metal Packaging Market Growth by Region

Competitive Landscape

The Indian metal packaging market is quite competitive. It is moderately fragmented that consists of significant individual players such as Ball India (Ball Corporation), Oricon Enterprises Limited, Casablanca Industries Pvt Ltd, Hindustan Tin Works Ltd. Many companies are increasing their market presence by expanding their operations or entering into strategic mergers and acquisitions.

  • January 2020 - Ball Corporation launched a new impact extruded aluminum bottle line that provides a circular solution to plastic pollution. This impact extruded aluminum bottle can be customized for numerous beauty, personal care, food, and beverage products with various shapes and sizes. Unlike other substrates in these categories, including plastic shampoo jars or bottles for cosmetics, Ball's aluminum bottles could be recycled countless times and repeatedly turned into other aluminum products.

Recent Developments

  • February 2020 - Oricon Enterprises Limited entered into a Joint Venture (JV) agreement with Tecnocap Group to incorporate a new company, Tecnocap Oriental Pvt Limited. The company will be engaged in manufacturing lug caps and located at Murbad in the Thane district of Maharashtra. Oricon Enterprises Limited manufactures and markets packaging products comprising metal caps and closures, including crown caps. This joint venture marks the Tecnocap Group's full entry into the Indian and Far Eastern markets.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Industry Value Chain Analysis

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Bargaining Power of Suppliers

      2. 4.3.2 Bargaining Power of Consumers

      3. 4.3.3 Threat of New Entrants

      4. 4.3.4 Intensity of Competitive Rivalry

      5. 4.3.5 Threat of Substitute Products

    4. 4.4 An Assessment of the Impact of COVID-19 on the Market

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 High Recyclability Rates of Metal Packaging

      2. 5.1.2 Convenience and Lower Price Offered by Canned Foods

    2. 5.2 Market Restraints (Rising Raw Material Prices, Government Regulations, Presence of Alternate Packaging Solutions, etc.)

  6. 6. MARKET SEGMENTATION

    1. 6.1 Materials Type

      1. 6.1.1 Aluminum

      2. 6.1.2 Steel

    2. 6.2 By Product Type

      1. 6.2.1 Cans

        1. 6.2.1.1 Food Cans

        2. 6.2.1.2 Beverage Cans

        3. 6.2.1.3 Aerosol Cans

      2. 6.2.2 Bulk Containers

      3. 6.2.3 Shipping Barrels and Drums

      4. 6.2.4 Caps and Closures

      5. 6.2.5 Other Product Types

    3. 6.3 By End-User Vertical

      1. 6.3.1 Beverage

      2. 6.3.2 Food

      3. 6.3.3 Industrial

      4. 6.3.4 Cosmetic and Personal Care

      5. 6.3.5 Paints and Varnishes

      6. 6.3.6 Automotive

      7. 6.3.7 Household

      8. 6.3.8 Other End-user Verticals

  7. 7. COMPETITIVE INTELLIGENCE - KEY VENDOR PROFILES

    1. 7.1 Asian Aerosol Group

    2. 7.2 Casablanca Industries Pvt. Ltd - Only Aerosol Cans

    3. 7.3 Shetron Limited - Metal Cans for Food and Not Beverages

    4. 7.4 Zenith Tins Private Limited

    5. 7.5 Petrox Packaging (I) Pvt. Ltd

    6. 7.6 Deccan Cans & Printers Pvt. Ltd

    7. 7.7 Hindustan Tin Works Ltd

    8. 7.8 Hi-Can Industries Pvt. Ltd

    9. 7.9 Kaira Can Company Limited

    10. 7.10 Ball India (Ball Corporation)

**Subject to Availability

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Frequently Asked Questions

The India Metal Packaging Market market is studied from 2019 - 2026.

The India Metal Packaging Market is growing at a CAGR of 6.52% over the next 5 years.

Ball India (Ball Corporation), Oricon Enterprises Limited, Hindustan Tin Works Ltd., Casablanca Industries Pvt Ltd, Deccan Cans & Printers Pvt. Ltd. are the major companies operating in India Metal Packaging Market.

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