Metal Packaging Industry Overview
|Study Period:||2018 - 2028|
|Fastest Growing Market:||Asia Pacific|
|Largest Market:||North America|
*Disclaimer: Major Players sorted in no particular order
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Metal Packaging Market Analysis
The metal packaging market was valued at USD 138.11 billion in 2020 and is expected to reach USD 193.24 billion by 2027 and grow at a CAGR of 4% over the forecast period (2020-2027). Recyclability of metal packaging is one of the significant factors expected to drive the global metal packaging market over the forecast period. Due to the superior recycling infrastructure, aluminium and steel packaging materials are the two most robust raw materials for packaging. Most North American and European companies prefer to advertise that their products are packed with sustainable materials. In many cases, green/eco-friendly packaging is crucial for consumers in the region when choosing a product.
- The demand for metal packaging products such as aluminium cans in the United States and Europe has always been on the higher side. With the growing middle-income group population, changing lifestyles, and evolving consumer preferences, consumption rates in the Asian and Southeast Asian countries are also rising steadily. In June 2019, Hindalco Industries Ltd, a company of the Aditya Birla Group, Can-Pack India, and Ball Beverage Packaging (India), formed a consortium to popularize aluminium beverage packaging. The Aluminum Beverage Can Association of India (ABCAI) consortium advocates replacing plastic and glass with aluminium as packaging material. Moreover, the use of aluminium cans in the country is 5 %, and the association's objective is to help its growth to about 25 % by 2030.
- Metal packaging is also finding extensive application in the food and beverage industry, as it is suitable for protecting food content, ensuring a longer shelf life than most other packaging solutions. In contrast, heavy-duty metal containers, such as drums, and IBCs (Intermediate bulk containers), transport oil, chemicals, and bulk liquids. According to the United Nations, the world is urbanizing rapidly; the proportion of people living in urban areas is expected to increase to 66% by 2050. As urbanization is picking up and rising affluence, diet is changing, characterized by a high demand for packaged food. Additionally, excellent preservative properties and structural integrity of the various metal product types, offering higher shelf life, have resulted in the increased usage of metal packaging in the food packaging industry.
- Ready or on-the-go meals have also been witnessing a steady demand for convenience, especially among consumers with busy lifestyles. Therefore, large organized retailers have started to stack vast amounts of canned food and beverages. Nowadays, offline and online retailers stock a wide range of brands of packaged food items in their stores. Metal packaging is suited as containers for beverages as they are easy to cool, great for keeping the contents fresh and prevent breakages when on the go due to the material's strength.
- With nearly 98 billion units produced each year and four groups being consumed weekly by every EU citizen, in the wake of COVID-19, the Metal Packaging Europe (MPE) association led the European producers of rigid metal packaging to recognize the metal packaging sector as essential in ensuring the uninterrupted flow of critical goods. Expansion projects by multiple beverage can manufacturers have helped the countries meet the growing demand for metal cans over the past few years. However, delays have been experienced due to country-specific travel restrictions and safety concerns. Moreover, multiple supply chain disruptions have led significant manufacturers to report setbacks. For instance, in May 2020, Ball corporation announced delays in beverage packaging projects in Europe and Brazil due to the restrictions imposed by the COVID-19 pandemic.
Metal Packaging Industry Segments
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.
|By Material Type|
|By Product Type|
|Shipping Barrels and Drums|
|Caps and Closures|
|Other Product Types|
|By End-user Vertical|
|Cosmetic and Personal Care|
|Paints and Varnishes|
|Other End-user Verticals|
|Middle East & Africa|
Metal Packaging Market Trends
This section covers the major market trends shaping the Metal Packaging Market according to our research experts:
Cans are Expected to Hold a Significant Share
- Of all the different kinds of metal packages, cans have been the most popular. Ease of use and availability has aided 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 global metal cans demand. Increasing demand for mini-cans has been observed, especially in the Asia-Pacific markets, such as India, China, and Japan. Therefore, most beverage companies in the region offer mini-cans, which generally contain smaller volumes of products and cost less than traditional canned products.
- This trend is resulting in more substantial unit consumption. Furthermore, with the increasing environmental concerns, consumers are demanding metal cans due to their low environmental impact. For instance, recycling steel and tin cans can save up to 74% of the energy used to produce them. According to the data based on the US Census Data and Simmons National Consumer Survey (NHCS), 102.18 million Americans consumed canned meat in 2019. India, China, and Brazil are the countries where demand for canned food is expected to increase over the forecast period, thereby positively impacting the market’s growth.
- Aggressive marketing strategies of beverage companies toward the usage of metal cans have also impacted the global metal packaging market. As canned beverages are considered trendy among the youth, and ready-to-eat or semi-processed canned foods are considered convenient and economical among several global users, the penetration of canned products is increasing rapidly.
- Metal cans are also gaining traction in the packaged water category. These cans offer sustainability advantages, and significant producers can be expected to continue to invest in developing technologies for beverage can production, lightweight techniques, and improvement in functionality. Additionally, increasing environmental policies and a growing focus on recycling augment the need for aluminium material. The focus of companies on improving the eco-friendly brand image is further expanding the growth of the cans segment of the market studied.
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North America is Expected to Hold Major Share
- The North American region accounts for a significant share of the metal packaging industry due to sustenance by the high concentration of consumer goods, manufacturers, and packaged goods manufacturers. Owing to this, the packaging industry in this region is well established. Stringent government regulations and standards are responsible for the increased proliferation of metal packaging products in the area. The massive consumption of canned food in North America is also responsible for the increase in the metal packaging industry's growth. Canada observes the effects of steel and aluminium tariffs on the craft beer industry.
- For instance, according to the U.S. Census Bureau, approximately 214.07 million U.S. citizens consumed canned, jarred, or packaged fruit in 2019. Also, nearly 102.18 million U.S. citizens consumed canned meat in 2019. Moreover, most organic food consumed/preferred by consumers in the United States is meat/poultry, yogurt, and juices. The beverage segment constitutes many new speciality drinks, like energy drinks, delivered in 8.2-ounce cans. According to the Beer Institute, American brewers fill and sell about 36 billion aluminium cans and bottles annually. These cans constitute 62% of the beer volume made and sold in the United States.
- The United States reported witnessing a surge in demand for processed foods like canned soups and vegetables during the outbreak of COVID-19, affecting the metal packaging across the food industry's supply chain. Metal container manufacturers were required to speed up production, but labour remained challenging. Crown Holdings announced to increase in production in the U.S. across 2020. The pandemic added urgency to the effort. The company initiated 81 open production jobs at its 25 U.S. plants in place of the third production line set up at a Nichols, New York factory. Silgan Holdings has over 50 plants across the United States. The company reported an increase in first-quarter earnings in 2020, partly due to a demand increase in cans.
- Most of the recyclers in the North American region face contamination, where the recyclable products are affected by leftovers or unrelated wastes. This is a more significant issue in Canada than in the United States. According to a prominent recycler in Ontario, Canada Fibers, if Ontario's average contamination rate reaches 27%, it may cost the recyclers an extra charge of USD 5 million annually. Furthermore, according to Solid Waste Management for the City of Toronto, a decrease in each percentage point in the contamination of recyclable materials may lower the recycling costs in Toronto by USD 600,000 to USD 1 million per year.
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Metal Packaging Market Competitor Analysis
The metal packaging market is highly competitive and is moderately fragmented that consists of significant individual players such as Ball Corporation, Crown Holdings, Inc., Silgan Holdings, Inc., etc. Many companies are increasing their market presence by introducing new products, expanding their operations, or by entering into strategic mergers and acquisitions.
- January 2022 - Sonoco has announced it has now completed the acquisition of the Ball Metal pack. Sonoco and Ball Metalpack are a clear strategic fit. The metal packaging business complements Sonoco’s largest Consumer Packaging franchise and iconic global Paper Cans and Closures business.
Metal Packaging Market Top Players
Crown Holdings Incorporated
Silgan Holdings Incorporated
CCL Container Inc
*Disclaimer: Major Players sorted in no particular order
Metal Packaging Market Recent Developments
- July 2022 - CANPACK S.A., a member of the CANPACK Group and a global leader in sustainable packaging, announced that it would expand its aluminium beverage can manufacture capacity with a new production facility in Poços de Caldas, Minas Gerais, Brazil. CANPACK officials, state and local officials, and economic development leaders jointly announced the new facility, with economic development incentives provided by both the state and local governments.
- July 2021 - Ball intends to build new aluminum beverage packaging plants in UK & Russia, supporting the long-term growth of its strategic partners. The company plans to build new plants in Western Russia and the East Midlands, the UK, adding billions more cans per year to existing capacity. One of the world's leading manufacturers of infinitely recyclable aluminum beverage packaging is planning to significantly increase its manufacturing capacity with new cutting-edge facilities in the UK and Russia.
Metal Packaging Market Report - Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview (Coves the impact due to COVID-19)
4.2 Industry Attractiveness - Porter's Five Force Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 High Recyclability Rates of Metal Packaging
5.1.2 Convenience and Lower Price Offered by Canned Food
5.2 Market Challenges
5.2.1 Presence of Alternate Packaging Solutions
6. MARKET SEGMENTATION
6.1 By Material Type
6.2 By Product Type
188.8.131.52 Food Cans
184.108.40.206 Beverage Can
6.2.2 Bulk Containers
6.2.3 Shipping Barrels and Drums
6.2.4 Caps and Closures
6.2.5 Other Product Types
6.3 By End-user Vertical
6.3.4 Cosmetic and Personal Care
6.3.5 Paints and Varnishes
6.3.8 Other End-user Verticals
6.4.1 North America
220.127.116.11 United States
18.104.22.168 United Kingdom
22.214.171.124 Rest of Europe
126.96.36.199 Rest of Asia-Pacific
6.4.4 Latin America
6.4.5 Middle East & Africa
7. COMPETITIVE LANDSCAPE
*List Not Exhaustive
7.1 Company Profiles
7.1.1 Ball Corporation
7.1.2 Crown Holdings Inc.
7.1.3 Can-Pack SA
7.1.4 Silgan Holdings Incorporated
7.1.5 Tubex GmbH
7.1.6 Greif Incorporated
7.1.7 Mauser Packaging Solutions
7.1.8 Ardagh Group
7.1.9 DS Containers Inc
7.1.10 CCL Container Inc.
7.1.11 Toyo Seikan Group Holdings Ltd
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
Metal Packaging Market Research FAQs
What is the study period of this market?
The Metal Packaging Market is studied from 2018 - 2028.
What is the growth rate of Metal Packaging Market?
The Metal Packaging Market is growing at a CAGR of 4% over the next 5 years.
Which region has highest growth rate in Metal Packaging Market?
Asia Pacific is growing at the highest CAGR over 2018 - 2028.
Which region has largest share in Metal Packaging Market?
North America holds highest share in 2021.
Who are the key players in Metal Packaging Market?
Ball Corporation, Crown Holdings Incorporated, Silgan Holdings Incorporated, Can-Pack SA, CCL Container Inc are the major companies operating in Metal Packaging Market.
Metal Packaging Industry Reports
In-depth industry statistics and market share insights of the Metal Packaging sector for 2020, 2021, and 2022. The Metal Packaging research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the Metal Packaging report PDF.