The global aluminum cans market was valued at USD 42. 05 billion in 2020, and it is expected to reach USD 55. 31 billion by 2026, registering a CAGR of 4. 29% from 2021 to 2026. Aluminum cans offer long-term food quality preservation benefits.
New York, Nov. 18, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Global Aluminum Cans Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" - https://www.reportlinker.com/p06184974/?utm_source=GNW
Aluminum cans deliver nearly 100% protection against light, oxygen, moisture, and other contaminants. These cans do not rust and are resistant to corrosion and provide one of the most extended shelves lives considering any packaging.
Additionally, these cans provide many benefits, such as rigidity, stability, and high barrier properties, due to which they are used to store goods having longer shelf life and can be transported for more considerable distances. Aluminum has significant properties, such as being softer and lightweight, due to which the manufacturers can save costs associated with logistics.
Aluminum cans are gaining prominence due to various distinct features, such as stackable, lightweight, strong, hermetically sealed cover, resistance to transportation, rough handling, and easy recyclability, allowing brands to package and transport more beverages using less material.
One of the most significant benefits of aluminum cans is that these cans are highly recyclable. Nearly 100% of the aluminum used in the cans can be melted down and used again. Aluminum cans can be recycled at the end of their lifecycle without its quality degradation, making aluminum cans the preferred packaging type for brands across various industries, ahead of other materials, such as plastic and paper. The time frame for recycling is also quick, as mostly recycled can backs on the shelf in less than 90 days.
The Aluminum Association and the Can Manufacturers Institute (CMI) report "The Aluminum Can Advantage: Sustainability Key Performance Indicators 2020,"published in December 2020, found that consumers recycle aluminum cans at nearly double the rate of plastic bottles.
As the COVID-19 pandemic swept across the world, all industries were affected majorly due to disruption in the supply chains and government-imposed lockdowns in the wake of controlling its spread. During the COVID-19 pandemic, almost every brewery and beverage company around the world simultaneously wanted to can their product and get it on the shelf. This demand for cans skyrocketed at the same time as the aluminum can manufacturers were working to keep the production steady and growing. However, by mid of 2020, the industry had passed the tipping point and suffered from aluminum can shortage.
Key Market Trends
High Recyclability of Aluminum Cans is expected to drive the market.
Growing environmental concerns worldwide have resulted in increasing awareness about the type of packaging materials utilized. The high energy consumption of packaging manufacturing is one of the factors pushing recycling. Diminishing natural resources, global warming, and the impact of plastics on the environment are the major trends influencing consumer demand.
Initiatives by environmental groups and public awareness about the environment have increased awareness among users across the world. Consumers are demanding packaging products that cause no or lower environmental impact. Consumers are increasingly abandoning plastic usage, whereas the demand for recycled products is growing. As a result, it is creating a high demand for metal packaged products, including aluminum cans.
The recyclability of aluminum is one of the key factors influencing the consumption of aluminum cans in the market. Aluminum cans are almost 100% recyclable. Metal cans, specifically aluminum, are the most recycled packaging units across the world. These cans can be recycled at the end of their life cycle without degrading the quality, making them the preferred packaging material for companies across the industries, such as plastic and paper.
According to the Aluminum Association and Can Manufacturers Institute Report, published in December 2020, the consumer recycling rate for aluminum cans was 46.1% in the United States in 2019. Moreover, according to Metal Packaging Europe and Europe Aluminum December 2020 report, The total recycling rate for aluminum beverage cans in the European Union, Norway, Switzerland, and Iceland increased by over 2% from 2017 (74.5%), to reach an all-time high of 76.1% in 2018. The total amount of aluminum recycled rose by 37,000 tons to 457,000 tons, representing a total Green House Gas emissions saving of 3.7 million tons of CO?.
North America to Hold a Significant Share in the Market
North America holds the largest market share in terms of revenue due to the growing concerns regarding the use and consumption of sustainable packaging materials. It accounts for more than one-third of the total global consumption of aluminum cans.
The presence of aluminum producers and demand from packaging firms is also boosting the growth in North America. According to World Aluminum Organization, 5,112 thousand metric tons of primary aluminum are produced worldwide as of February 2020, out of which 312 thousand metric tonnes are produced in North America, which helps to grow the aluminum can help the industry in this region.
Aluminum cans have a higher recycling rate and more recycled content than competing package types. According to the Aluminum Association, it’s one of the most recycled materials on the market. Recycling saves more than 90% of the energy required to produce new metal hence reducing the cost of production. In the United States, two aluminum cans are recycled for every three cans shipped across the region. Factors such as these will boost the market growth.
In the US, 70% of the plastic collected for recycling goes to landfills, and the rising emphasis on reducing carbon footprint by controlling climate change is one of the growth drivers for aluminum cans in the region.
Owing to the increasing consumption of alcoholic and non-alcoholic beverages such as beer and carbonated drinks, there has been a significant demand for aluminum cans. For instance, according to the Alcohol and Tobacco Tax and Trade Bureau, in 2020, the volume of beer produced in the country was around 179.95 million barrels. Also, according to the Beer Institute’s 2020 Report, America’s brewers make use of around 36 billion aluminum cans every year.
Additionally, in Aug 2020, Crown Holdings Inc. announced its new initiative called Twentyby30. The company calls a robust program outlining 20 measurable environmental, social, and governance goals to be completed by 2030 or earlier. The maker of aluminum and steel cans created 20 goals, putting them into five categories: Optimum Circularity addressing the usage of recycled content and the recycling of discarded packaging.
Furthermore, in Sep 2020, Ball Corporation announced building a new United States aluminum beverage packaging plant in Pittston, PA. This multi-line beverage can plant expected to begin production in mid-2021. This investment supports the company’s focus on the rising demand for infinitely recyclable aluminum containers used in spiked seltzer, beer, sparkling water, and carbonated beverage categories.
The aluminum cans market is highly fragmented, owing to the presence of various global and local industry players. Vendors in this market participate based on product portfolio, differentiation, and pricing. Recent developments in the market are:
July 2021 - Ball Corporation partnered with EN+ Group’s Metals segment RUSAL to incorporate "ultra-low carbon"aluminum in the slugs and impact extruded containers manufactured by Ball. The aluminum produced by EN+’s Metals segment uses inert anode technology and renewable energy-based smelting, which reportedly generates 85% less CO2e compared to the global average for aluminum production.
November 2020 - Crown Holdings Inc became the first metal packaging manufacturer to achieve the 15-year wind power, Virtual power purchase Agreement with Longroad Energy, and this serves as a significant step for Crown’s plan for employing 60% renewable electricity by 2030.
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