South America Metal Cans Market Size & Share Analysis - Growth Trends and Forecast (2026 - 2031)

South America Metal Cans Market Trends and Insights

Category Diversification in Beverages Redefining Can Demand

Abralatas reported 34.1 billion aluminum beverage cans sold in Brazil in 2025, the second-highest annual volume recorded by the association. Beer and carbonated soft drink volumes declined slightly, but canned water, energy drinks, ready-to-drink beverages, juices, and canned cachaça supported demand. Canned water sales increased 24% from 2024, which showed that consumption was broadening beyond traditional beverage categories. Abralatas expects a renewed growth cycle in 2026 as recent investments mature and the consumption calendar includes extended holidays and the FIFA World Cup. This mix gives can makers opportunities to serve a broader set of beverage pack sizes and brand formats. The South America Metal Cans Market benefits when new beverage categories adopt familiar can-filling and distribution systems.

Aluminum Recycling and Circular Economy Momentum Shaping Procurement

Brazil recycled 97.3% of aluminum beverage cans sold in 2024, according to Recicla Latas and its independent audit process. The rate had remained above 95% for more than 15 consecutive years, and the system had reached 100% in 2022 and 2025. Recycling secondary aluminum uses 5% of the energy required for primary aluminum production from bauxite. Abralatas stated that Brazil’s aluminum can value chain avoided more than 18 million tonnes of greenhouse gas emissions over the past decade. The collection network gives the South America Metal Cans Market a practical supply and environmental advantage over packaging formats with weaker recovery systems.^{[1]Ball Corporation, “Ball Corporation Releases 2025 Combined Annual and Sustainability Report,” Ball Corporation, investors.ball.com.}

Urbanization, Income Growth, and Modern Retail Expanding Demand

Higher household incomes and broader access to modern retail are supporting demand for packaged goods in Brazil and Colombia. This shift brings more consumers into categories that rely on standardized, portable packaging. Ball’s beverage packaging business in South America generated USD 2.16 billion in 2025 revenue, compared with USD 1.95 billion in 2024. The company linked the increase to volume growth and a stronger price mix, including demand for premium sleek cans. Retail growth, therefore, supports both higher volumes and a wider range of can specifications. The South America Metal Cans Market has greater access to consumers as formal retail and digital ordering channels expand.^{[2]Abralatas, “ESG Sector Report 2025,” Abralatas, abralatas.org.br.}

Manufacturing Process Innovation Improving Yield and Product Fit

Drawn and ironed technology supports high-volume beverage production by using less metal per container and operating at high line speeds. The process achieved wall-thickness tolerances below 0.1 mm for standard beverage cans in the supplied analysis. This efficiency supports the South America Metal Cans Market, where material cost remains central to converter economics. Impact extrusion serves a different requirement by producing seam-free containers for aerosol, personal care, and pharmaceutical uses. Aluminum monobloc containers provide pressure resistance, decoration flexibility, and recyclability for these applications. These separate process choices enable the South America Metal Cans Market to meet both mass-volume and specialty packaging requirements.

Aluminum and Steel Price Volatility Creating Margin Pressure

Aluminum and steel price movements create immediate pressure on can converters with limited pass-through provisions. Regional recycling networks reduce some exposure, yet producers remain linked to primary metal pricing and local currency movements. Ball reported that sales in the South America segment rose 24% year over year to USD 591 million in the second quarter of 2026. The company said higher aluminum prices contributed to the increase, indicating that cost recovery varied across customers. The South America Metal Cans Market will remain exposed to raw material inflation outpacing contracted selling prices.

PET, Glass, and Flexible Packaging Competing for Applications

PET bottles, glass, and flexible pouches remain established options in lower-priced beverage and food products. Returnable glass and lightweight PET can retain logistics advantages in selected channels. This limits metal containers' ability to win every stock-keeping unit, even where performance is favorable. Flexible formats are particularly relevant for food products that do not need the pressure resistance or shelf-life profile of steel cans. The South America Metal Cans Market, therefore, depends on product categories where portability, rapid chilling, barrier protection, and visual differentiation matter most. It is strongest where brands place value on handling, cooling performance, and printed presentation.

*Our forecasts treat driver/restraint impacts as directional, not additive. The impact forecasts reflect baseline growth, mix effects, and variable interactions.

Segment Analysis

By Material Type: Aluminum Extends Its Lead Through Beverage Demand

Aluminum held a 68.47% regional value share in 2025 and is forecast to grow at a 4.83% CAGR through 2031. Its lead reflects the scale of beverage can lines and the country’s established collection and recycling system. Ball shipped nearly 20 billion aluminum containers from 12 South American facilities in 2025. The company identified an addressable regional aluminum beverage can base of nearly 43 billion containers. Aluminum offers low weight and broad design flexibility for beverage brands.

Steel remains relevant in fish and seafood, processed food, and industrial chemical packaging. These products use steel where durability, processing requirements, and shelf life are important. The material has lost ground in beverage applications as aluminum formats expanded. Ardagh’s Brazilian facilities recorded 14% year-over-year volume growth in the first quarter of 2026. The company attributed the result to a stronger category mix, including energy drinks and canned water.^{[3]Ardagh Metal Packaging, “Fourth Quarter and Full Year 2025 Results,” Ardagh Metal Packaging, ir.ardaghmetalpackaging.com.}

By Can Structure: Two-Piece Cans Lead as Monobloc Aerosols Advance

Two-piece cans accounted for 74.21% regional value share in 2025. Their position comes from use across beer, carbonated soft drinks, and energy drinks. High-speed drawn and ironed lines support low unit costs in these high-volume formats. Two-piece designs are also well-suited to conventional beverage diameters and filling systems. Their established base keeps them central to the South America Metal Cans Market.

Monobloc aerosol cans are forecast to grow at a CAGR of 5.12% through 2031. Personal care and cosmetics brands use the structure because it has no side seam and maintains pressure integrity. The format also supports full-surface decoration and shaped external designs. Three-piece cans continue to play a role in food processing, including packaging for fruit, vegetables, and seafood. Smaller-diameter drawn-and-ironed technology is increasing competitive pressure on three-piece formats.

By Capacity and Size: Mid-Range Formats Remain the Volume Base

The 250-500 ml tier accounted for 51.84% of regional value share in 2025. Standard 350 ml and 473 ml beer cans underpin much of its demand in Brazil, Argentina, and Chile. The size is familiar to consumers and fits high-volume beverage distribution. It also supports carbonated soft drinks and several ready-to-drink formats. This tier remains the main operating base for established beverage lines.

The sub-250 ml tier is forecast to grow at a CAGR of 4.69% through 2031. Single-serve energy drinks and canned water are driving demand for compact formats. Abralatas reported that canned water sales in Brazil increased 24% in 2025. Ardagh supplies 269 ml and 355 ml sleek cans alongside standard formats in Brazil. This wider size range helps converters meet demand without moving away from established aluminum can technology.

By Manufacturing Process: Drawn and Ironed Lines Set the Cost Base

Drawn and ironed production accounted for 81.36% of the regional value share in 2025. The process aligns with a beverage-heavy demand profile and high-speed filling lines. It supports aluminum efficiency at standard beverage volumes. The process remains appropriate for beer, carbonated soft drinks, and energy drinks. This cost position is maintained across major can manufacturing sites.

Impact extrusion is forecast to grow at a CAGR of 4.77% through 2031. The process is used to produce aluminum monobloc aerosol containers for personal care and pharmaceutical applications. It creates a seamless package that can withstand internal pressure. This capability supports deodorant, hair care, and spray products. The South America Metal Cans Market can therefore serve both high-volume beverages and smaller premium aerosol uses.

By End-User Industry: Beverages Lead While Food and Personal Care Add Demand

Beverages accounted for 62.93% of the regional value share in 2025. Beer and carbonated soft drinks remained the largest-volume uses despite a modest decline in Brazil during 2025. Energy drinks are the fastest-growing beverage subsegment at a CAGR of 5.24% through 2031. New beverage categories provide manufacturers with demand that is less dependent on traditional beer volumes. This keeps beverage production at the center of capacity planning.

Food applications support the demand for steel cans for seafood, fruit, vegetables, and wet pet food. The South America pet food sector was valued at USD 16.09 billion in 2026 and is forecast to reach USD 24.01 billion by 2031 at a CAGR of 8.33%. This demand supports wet pet food volumes without requiring a separate packaging estimate. Personal care and industrial users add demand for aerosols, paints, automotive fluids, and lubricants. These uses give the South America Metal Cans industry exposure beyond mainstream beverages.

Geography Analysis

Brazil held 58.19% regional value share in 2025. A large aluminum beverage anchor anchors the country’s scale base and an advanced collection system. Abralatas reported sales of 34.1 billion aluminum beverage cans in Brazil during 2025. Recicla Latas reported a 97.3% recycling rate for beverage cans sold in 2024. The South America metal cans market in Brazil benefits from local production, availability of recycled materials, and established beverage demand.

Brazil’s food packaging rules and aluminum can quality standards support localized supply. Ball reopened its Pouso Alegre facility in Minas Gerais in 2025 to serve regional beverage demand. Crown is adding a third line at its Ponta Grossa facility in Paraná. The project will expand annual capacity from 2.4 billion to 3.6 billion cans. Commercial production from the line is expected in the third quarter of 2026.^{[4]Crown Holdings, “Crown Holdings, Inc. To Add Third Line to Ponta Grossa, Brazil Beverage Can Plant,” Crown Holdings, crowncork.com.}

Argentina remains a major user of steel food cans for seafood, fruit, and vegetables, as well as for automotive fluid applications, while currency volatility and inflation continue to affect converter margins and investment visibility. The Rest of South America is forecast to grow at a CAGR of 4.56% through 2031. Chile supports demand for industrial chemicals and seafood, while Colombia is attracting investment for aluminum beverage capacity. CANPACK began construction of a plant near Barranquilla in early 2026, with an annual capacity of 1 billion can bodies and commercial production targeted for the first quarter of 2027.