Market Trends of Metal Packaging Industry
Beverage Cans are Expected to Witness Major Growth
- Alcoholic beverages in metal cans have become increasingly popular in recent years due to various benefits and consumer preferences. Canned alcoholic beverages typically come in standard portion sizes, making it easier for consumers to monitor their alcohol intake. This is especially important for drinks with a high alcohol content. Aluminum is exceptionally lightweight, making it an excellent choice for packaging products that need to be easily transported, such as beverages. Lightweight packaging can also reduce transportation costs and carbon emissions.
- Due to rising health consciousness among consumers, the adoption of energy drinks increased, further surging the demand for metal cans. Consumers are becoming increasingly aware of their sugar intake and its impact on their health and well-being. As a result, there is a growing need for sugar-free, natural, and organic drinks. The evolving landscape of the beverage industry has been a critical driver for the growth of the metal cans market in the non-alcoholic beverage sector.
- For example, Red Bull is one of the most popular energy drinks in the United States, controlling about 39.5% of the market. According to the latest information published by Red Bull, the company sold 12.10 billion cans in 2023, more significant than the previous year's count of around 11.60 billion.
- Product launches by manufacturers in the non-alcoholic beverage sector significantly contribute to market growth. For instance, in January 2023, PepsiCo launched Starry, a lemon and lime carbonated soft drink with a crisp and refreshing taste. Carbonated soft drinks are traditionally packed in cans, and PepsiCo's introduction of Starry adds another product to the market that relies on metal cans for packaging.
- In January 2023, Monster Energy Ltd, a well-known energy drink brand, introduced its new zero-sugar beverages in aluminum cans. This increased demand for Monster Energy zero-sugar beverages can directly contribute to a higher demand for aluminum cans as the primary packaging choice for the product.
- Aluminum cans are gaining popularity owing to their exceptional technical properties and the fact that they are recyclable, thermally conductive, and highly lightweight. The beverage brands are also adopting metal cans due to growing environmental concerns about plastic. According to data from The World Counts, the world's beer and soda consumption is at about 180 billion aluminum cans annually. This is 6,700 cans every second, enough to go around the planet every 17 hours.
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Asia-Pacific is Expected to Register the Fastest Growth
- With the nation's sizeable manufacturing and consumer goods sectors, China has one of the biggest markets for metal packaging worldwide. The food and beverage, pharmaceutical, cosmetic, and home goods industries are the main drivers of the need for metal packaging.
- China witnessed a surge in the adoption of sustainable packaging solutions due to heightened environmental consciousness and regulatory measures. Manufacturers are looking into possibilities like can coatings that are environmentally friendly and recyclable metals. Developing recyclable materials and environmentally friendly production processes will be fueled by stricter environmental legislation and customer demand for sustainable packaging.
- For instance, in October 2023, Budweiser Brewing Company APAC Limited started a "Can-to-Can" recycling program in China to increase the proportion of recycled aluminum cans and meet its targets of cutting carbon emissions by 35% by 2025. The company committed to taking the lead in advancing China's twin carbon targets and achieving net zero across its entire value chain by 2040. China has set an ambitious goal of peaking carbon dioxide emissions before 2030 and being carbon neutral by 2060 to pave the way for a cleaner and more environmentally friendly future. This is expected to fuel the country's growth of metal packaging solutions.
- India's can and industrial metal packaging market has been steadily expanding due to several factors, including the country's growing paint and coating, personal care, and food and beverage industries. The benefits of metal packaging solutions include strength, recyclability, and barrier qualities. They are extensively utilized in industries like food and beverage, pharmaceuticals, personal care, and chemicals, including paints and coatings.
- Technological and manufacturing process innovations have increased the industry's quality, efficiency, and customizability of metal packaging solutions. With the sixth-largest economy in the world right now, India is quickly industrializing and opening up new prospects for both large and small businesses. This is anticipated to drive the growth of the country's metal packaging market.
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