In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
The global aluminum beverage packaging market is anticipated to grow with a notable CAGR during the forecast period, i.e., 2021-2029. Factors such as the growing demand for sustainable packaging solutions, increasing awareness for green & eco-friendly packaging, increasing adoption of metal packaging, along with the high recyclable rates of aluminum are some of the major factors anticipated to drive the growth of the global aluminum beverage packaging market.
Aluminum beverage packaging refers to all the packaging elements made up of different grades of aluminum in the beverage industry. These packaging elements include the manufacturing and sourcing of aluminum beverage containers of varied shapes and sizes or packaging services for the beverage manufacturers. Aluminum packaging in the beverage industry is primarily used to package alcoholic or non-alcoholic beverages as this type of packaging acts as exceptional barriers against air, moisture, and light.
The global aluminum beverage packaging market is thriving on account of the growing number of health-conscious consumers who are highly aware of the negative health effects caused due to the manufacturing of the beverage from other packaging materials, along with the numerous benefits associated with the use of aluminum in the packaging of beverages. Aluminum possesses excellent preservative properties which help to protect the food content inside the aluminum container, and also helps to ensure longer shelf life. Moreover, aluminum possesses high structural integrity and hence, it helps the beverage manufacturers to opt for denser shipping, which further helps to reduce their transportation cost.
The global aluminum beverage packaging market is segmented on the basis of product type into aluminum cans, kegs, barrel, bottle, drum, caps & closures, and others. Amongst these segments, the aluminum cans segment is projected to grab the largest market share by the end of 2021. The growth of the segment can be attributed to the high cost-effectiveness of aluminum cans in the packaging of beverages. Initially, aluminum cans were widely used in beer packaging, and hence, aluminum cans were also known as beer cans. With the advent of time, aluminum cans were also used to pack carbonated drink manufacturers and other non-alcoholic and alcoholic drinks. Aluminum cans are usually manufactured using different grades of aluminum. The most common grade used to manufacture the can body is aluminum 3004 alloy (also known as Al 3004 alloy, or AA3004), or aluminum 3104-H19 alloy (also known as Al 3104-H19 alloy, UNS A93104, or AA3104-H19). The cap or closure of the aluminum can is usually manufactured using aluminum 5182 alloy (also known as Al 5182 alloy or AA5182). Technically, aluminum cans are manufactured using the industrial regulatory standard GOST R 51756-2001 protocols. Aluminum cans are designed to withstand carbonation pressures of up to 90 pounds per square inch and hence it is widely preferred to package soda. CLICK TO DOWNLOAD SAMPLE REPORT
The aluminum cans segment is further bifurcated into 2-piece and 3-piece. Out of these segments, the 2-piece aluminum can segment is anticipated to hold the largest market share by the end of 2029. Further, according to Research Nester’s analysis, the global aluminum cans market is anticipated to grow with a CAGR of around 4% during the forecast period 2019-2024 and further cross USD 56 billion by 2024.
According to the statistics by the United States Environmental Protection Agency (EPA), total landfills caused by plastic containers and packaging municipal solid waste (MSW) in the United States increased from 120 thousands of U.S. tons in the year 1960 to 10,090 thousands of U.S. tons in the year 2018.
Beverage packaging is done either by using metal packaging materials or by using polyethylene terephthalate (PET). One of the major drawbacks of single-use plastics is the non-biodegradable nature, which as a result takes centuries to decay. Further, PET bottles that are used for packaging beverages are known to be susceptible to oxidation, and hence cannot be used to store alcoholic beverages. Moreover, PET bottles are also known to contribute to the increasing landfills as these plastics can only be down-cycled and cannot be recycled in whole unlike aluminum, which can be recycled in total. This as a result is raising the need amongst the manufacturers in the beverages industry to prefer sustainable packaging methods, such as aluminum beverage containers for packaging different beverages. Moreover, increasing awareness amongst the end-users for the benefits of aluminum packaging, coupled with the stringent government norms for regulating the use of plastics, are some of the additional factors anticipated to drive the market growth. For instance, in May 2019, one of the subsidiaries of Aditya Birla Group, Hindalco Industries Ltd., announced a partnership with leading aluminum can manufacturers, Can-Pack India Pvt. Ltd., and Ball Beverage Packaging (India) Pvt. Ltd., to form a consortium called the Aluminium Beverages Can Association of India (ABCAI) which is aimed to build sustainable aluminum beverage packaging practices, raise awareness for the benefits of aluminum beverage can packaging, and increase the annual per capita beverage can consumption to 8 cans from 1 can by the end of 2030.
Over the past few decades, the price of aluminum has differed significantly. As a result, this has impacted the overall manufacturing cost of the aluminum beverage container manufacturers, thereafter raising the cost of the aluminum container. Such a factor is therefore anticipated to hamper the market growth in the coming years.
Our in-depth analysis of the global aluminum beverage packaging market includes the following segments:
On the basis of regional analysis, the global aluminum beverage packaging market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa regions. The market for aluminum beverage packaging in the Asia Pacific is estimated to register the largest market share by the end of 2021 owing to the presence of nations, such as China, India, Japan, Korea, and others, who are the leading manufacturers of primary aluminum. Moreover, shifting preferences for canned beverages amongst the health-conscious consumers in the region is also anticipated to drive market growth in the coming years in the Asia Pacific region. Alternatively, the market in North America is projected to have a significant market share on account of the growing demand for different type of beverages in the nations, such as the United States, along with the presence of numerous key beverage manufacturers in the region, such as The Coca-Cola Company, PepsiCo, Inc., Anheuser-Busch Companies, LLC, Nestle Group, Heineken Brouwerijen B.V., and others, who are focused on enhancing their eco-friendly brand image to further promote their beverage products. Moreover, increasing use of screw-top aluminum beverage bottles for packaging different beverages on the back of the growing need for innovative packaging solutions amongst beverage manufacturers, along with the increasing number of OEM packaging services providers in the region are some of the significant factors anticipated to contribute to the growth of the market in North America.
The global aluminum beverage packaging market is further classified on the basis of region as follows:
Ans: Growing demand for sustainable packaging solutions, increasing awareness for green & eco-friendly packaging, and increasing adoption of metal packaging, are some of the major factors driving the market growth.
Ans: The market is anticipated to attain a notable CAGR over the forecast period, i.e., 2021-2029.
Ans: The fluctuating prices of aluminum, which hampers the end product cost, is one of the major factors estimated to act as barriers to the growth of the market.
Ans: The market in North America is projected to hold a significant market share by the end of 2029 and display significant business opportunities, backed by the presence of key beverage manufacturers in the region.
Ans: The major companies in the market are Ardagh Group S.A., Ball Corporation, Crown Holdings, Inc., Amcor plc, COFCO Packaging Holdings Co., Ltd., Sonoco Products Company, and others.
Ans: The company profiles are selected based on the revenues generated from segments, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market in the Asia Pacific is anticipated to hold the dominating share by the end of 2021 on account of the presence of countries, such as China, India, and others, who are leading producers of primary aluminum.
Ans: The aluminum beverage packaging market is segmented by product type, solution, and by region.
Ans: The aluminum cans segment, which is a sub-segment of the product type segment, is projected to hold the dominating share by the end of 2021 owing to the high cost-effectiveness of aluminum cans in the packaging of beverages.