Market Trends of North America Food Cans Industry
Steel Cans to Gain Market Growth
- The food industry is constantly evolving. In recent years, consumer preference for convenience food has shown an upward trend due to the ever-changing lifestyle. They can provide many benefits, such as rigidity, stability, and high barrier properties, which store goods with a longer shelf life. Steel material has significant properties, such as being softer and lightweight, so that the manufacturers can save costs associated with logistics.
- In August 2023, United States Steel Corporation and Google Cloud announced a new partnership to build applications using Google Cloud's generative artificial intelligence ('gen AI') technology to drive efficiencies and enhance employee experiences in the largest iron ore mine in North America. As one of the leading manufacturers engaging in gen AI with Google Cloud, US Steel continues to advance its more than 100-year legacy of innovation.
- Further, in March 2023, the Minister of Finance announced that Canada banned importing Russian steel and aluminum products. Through regulatory amendments, the importation of all Russian aluminum and steel products, including containers and other household items, is now prohibited. Also banned are all primary steel products, including iron and non-alloy steel, as semi-finished and finished products. Such bans would leverage the domestic steel market in the region, driving the growth of steel cans over the forecast period.
- Individuals in the region prefer more processed and ready-to-eat meals due to their busy lifestyles. Steel cans are fully recyclable and lose none of their resilience or inherent qualities, no matter how often it is recycled. According to the US Geological Survey, steel production in 2022 was 82 million metric tons, which decreased compared to the previous year from 85.8 million metric tons. The decrease could be due to various reasons, such as trade and supply chain challenges.
- Moreover, owing to rising ecological concerns, customers are evolving conscious about limiting the usage of plastics, which, in turn, is urging the need for steel cans in the region. Further, the increasing consumption of ready-to-eat meals, in conjunction with the growing efforts by manufacturers to finance advertising campaigns, is strengthening the industry's growth, thereby boosting the sales of cans in the region.
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Ready Meal to Witness Growth in the Region
- The United States holds a significant market share in revenue owing to the rising concerns regarding the usage and consumption of sustainable packaging materials. The country accounts for a substantial percentage of the total consumption of aluminum cans, mainly with the demand for ready meals and processed foods.
- These aluminum cans offer a higher recycling rate and more recycled content than the other package types. For instance, according to the Aluminum Association, it is one of the most recycled materials on the market. Recycling also saves more than 90% of the energy required to produce new metal, thereby reducing the cost of production.
- The future of ready meals will likely be influenced by several factors, including changing consumer preferences, technological advancements, and sustainability concerns. With increasing stress on health and wellness, there is a growing demand for meals made with natural and organic ingredients that cater to specific dietary needs. Sustainability is another key consideration, with an ever-increasing emphasis on eco-friendly packaging and reducing food waste. Overall, the future of ready meals will likely involve a greater focus on customization, convenience, and sustainability.
- Companies operating in the region are expanding their business. For instance, recently, Instacart launched an in-app hub for ready-made meals from grocery stores available from more than 4,100 stores across 35 states. Under the Ready Meals tab, customers can find fresh soups, sushi, prepared sandwiches, salads, take-and-bake casseroles, and other items. Publix, Kroger, and Ahold Delhaize's U.S. banners are supplying meals and will launch custom storefronts within the hub, according to Instacart.
- Also, the focus on stockpiling food with long shelf life, owing to the change in consumer behavior as a result of the pandemic, has contributed to the rise in the usage of cans for packaging food and is anticipated to leave a long-lasting positive impact on the growth of the studied market. Moreover, plant-based ready meals were valued at USD 1,055.1 million in 2022.
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