Rising Health Awareness
Increasing food safety and health awareness has led to the requirement for the BPA free cans for storage of food and beverages. Additionally, the flourishing food and beverage sector is increasing the demand for BPA free cans owing to rising need for storage and selling various food items.
Lead Banned Products
Lead is one of the toxic metal and thus, government has also taken actions for banning lead in any product. The lead contact with food is carcinogenic and may cause severe health damages to the consumers. The high amount of lead in food and other FMCG products may cause severe health disorders. This drives the market growth for lead free products and also promotes the usage of BPA free cans.
BPA is the major ingredient used in industrial chemical. BPA prevents corrosion and thus considered to be the easy chemical to manufacture cans. Thus, the preference of several industries for BPA is expected to hamper the growth of BPA free cans market in the coming future.
BPA free cans market is anticipated to record a CAGR of 4.2% over the forecast period .The global BPA free cans market is observing robust growth on account of high awareness for health and food safety, thereby driving the demand of BPA free cans. The BPA free cans are segmented by material type into plastic, aluminum and steel .Steel is expected to lead the BPA free cans market owing to high durability and better food safety followed by plastic on the account of its easy availability. Among the end user industry segments, food and beverage is anticipated to observe highest growth in the BPA free cans market.
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As per IMF data, the global food and beverage prices have dropped during the period of 2013-16, from 175 in 2013 with gradual decrease to 170 in 2014 and then a sudden drop to 143 in 2015 and slightly rose to 146 in 2016. This drop in price for food and beverage has increased its consumption.
This leads to high usage of BPA free cans and in turn is expected to increase the market growth of the BPA free cans market during the forecast period.
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.