Aluminum Foil Packaging Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 27.87 Billion |
| Market Size (2029) | USD 35.47 Billion |
| CAGR (2024 - 2029) | 4.94 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Aluminum Foil Packaging Market Analysis
The Aluminum Foil Packaging Market size is estimated at USD 27.87 billion in 2024, and is expected to reach USD 35.47 billion by 2029, growing at a CAGR of 4.94% during the forecast period (2024-2029).
- Aluminum foil protects against moisture, light, oxygen, and bacteria, thus fulfilling a critical requirement for industries like food, beverage, and pharmaceuticals. Aluminum foil is consumed majorly by the food and beverage industries. Aluminum composites prepared with paper products are in high demand due to the vast dairy industry. Additionally, aluminum foil is 88% reflective, which makes it useful for thermal insulation. The aluminum sheet also provides a protective vapor barrier, making it ideal for use in food packaging.
- Sunlight quickly affects many groceries, damaging their appearance and taste. Foil is the most viable solution to cater to these packaging requirements, which has led to the material being regarded as the ideal core packaging material for dairy products, pastries, and beverages.
- For instance, dry milk in hermetically sealed packages made from laminated foil has a shelf life of two years. A surge in the usage of other flexible packaging solutions might also be observed during the forecast period. The increased domestic demand for aluminum has led to an upsurge in aluminum foil imports from China, whose shipments to the United States increased significantly in the last decade. Currently, flexible packaging is mainly used for food, with the fastest areas of expansion being coffee, snack foods, fresh produce, ready-to-eat meals, and pet food.
- The market demand for aluminum foil packaging is expected to grow, owing to aluminum's lightweight, durability, flexibility, and barrier properties compared to plastic and glass. The ease of use, convenience, safety, lightweight, and durability of aluminum make it ideal for use across various verticals and households.
- The pharmaceutical business frequently uses blister packs for medicinal products. They comprise a push-through closure composed of aluminum foil known as blister film or lid film and the so-called push-through blister, a molded plastic with cavities for individual tablets. Different blister packing materials are employed in medicines for various items. Mainly, aluminum plastic packaging is employed in medicine packaging, while a few other medications use all packaging.
- Furthermore, the demand for aluminum foil packaging, including aluminum wraps and containers for pharmaceuticals and online-ordered food, has significantly increased in recent years. The Aluminum Stewardship Initiative (ASI) sets many standards for social and environmental policies. The organization is expected to restore the disrupted supply chains for aluminum foil packaging materials caused by nationwide lockdowns imposed during the COVID-19 pandemic.
- Aluminum's sustainability creates competitive business advantages while simultaneously providing product development advantages. According to the Aluminum Association, nearly 75% of all aluminum produced is still in use. Moreover, when disposed of, aluminum waste does not add poisonous contaminants to the water or ground but can be economically recycled and more sustainable.
Aluminum Foil Packaging Market Trends
Rolled Foils Segment Accounts for a Significant Share in the Market
- Aluminum foil packaging, including aluminum wraps and containers for pharmaceuticals and online-ordered food, has registered a significant increase in demand. The Aluminum Stewardship Initiative (ASI) has set many social and environmental policy standards. The organization is expected to restore the disrupted supply chains for aluminum foil packaging materials caused by the nationwide lockdowns imposed during the COVID-19 pandemic.
- Aluminum foil wrappers maintain brightness and reflectivity, attracting consumer attention in retail spaces. Besides, aluminum foil can be color-lacquered or printed with brand-identifying designs. The increasing demand for sustainable packaging, especially in the food and beverage industries, will likely make aluminum foil wrappers an attractive option.
- An aluminum foil wrap provides specific characteristics, such as dead fold and embossability, which other packaging materials cannot obtain. The food, tobacco, and cosmetics industries are expected to be the primary drivers of the growth of aluminum foil wraps over the forecast period.
- Additionally, aluminum rolled foils are increasingly used in the culinary preparation of different foods due to their ease of use and disposal and ability to transfer heat twice as quickly as regular metal. As part of a growing culinary practice in households, aluminum foil is used to wrap and bake food.
- In the past few years, the production of aluminum has also increased, and many countries have taken the initiative to increase the number of smelters for the production of large metric tons of aluminum. According to a US Geological Survey report published in January 2024, China's smelters collectively produced approximately 4.1 million metric tons of aluminum in 2023. Aluminum, the predominant non-ferrous metal, has extensive applications across the packaging industry.
Asia-Pacific Accounts for a Significant Share in the Market
- The Asia-Pacific regional segment is anticipated to maintain its dominance throughout the forecast period. China's massive consumption of aluminum foil for producing aluminum packaging is mainly responsible for the region's strong demand for the material, leading to the rise of the aluminum foil market. Aluminum foil is increasingly used for food goods storage in the region. Key industries, including food, pharmaceutical, and EV battery producers, are anticipated to propel market growth.
- Asia-Pacific countries produce and use the majority of aluminum in pouches and bags. The need for healthier lifestyles and consumption patterns in these countries is increasing the demand for aluminum foil. The need for aluminum foil packaging is rising due to increasing populations in developing countries. The demand for aluminum packaging is increasing across several Asia-Pacific countries as they seek to encourage environmentally friendly consumption, ensure food safety, preserve food, and uphold the principles of environmental sustainability.
- In addition, according to the National Bureau of Statistics, in 2023, the production volume of primary aluminum in China was 42 million tons, an increase from 40.21 million tons in 2022. In the past decade, China's annual primary aluminum production steadily increased, reaching 35.04 million tons in 2019.
- Moreover, at the 37th AAHAR International Food and Hospitality Fair, India's 1st Golden Embossed HOMEFOIL was launched by LSKB Aluminum Foils Pvt. Ltd. The thickness of 1 kg and 555 g golden and silver embossed HOMEFOIL launched by LSKB Aluminium Foils Pvt. Ltd is 18 Micron, and for 75 m, 25 m, and 9 m, it is 12 Micron. The products are manufactured using innovative technologies in safe, environment-friendly, well-ventilated premises to maintain hygiene. The package also has an attached foil cutter to cut the foil safely.
- India is the second-largest country worldwide after China in tobacco consumption, resulting in high demand for short aluminum foil wraps. Nowadays, aluminum foil is the preferred barrier material, particularly for the inner liner of cigarette packets. This is because it combines an exceptional "feel" and appearance that is light, robust, and simple to reseal with the capacity to preserve the distinctive aroma of each blend and brand.
- ITC India Ltd's Cigarette segment’s revenue surged to over INR 312 billion (USD 3.73 billion) in the financial year 2023, marking a significant increase from about INR 261 billion (USD 2.73 billion) in 2019. Notably, ITC Ltd stands as a major player in India's FMCG industry, with cigarettes being its flagship product. Therefore, such growth trends in cigarette revenue may have pushed the demand for aluminum foil nationwide.
Aluminum Foil Packaging Industry Overview
The aluminum foil packaging market is fragmented due to low entry barriers and growing demand. Some key players in the market are Amcor Limited, Constantia Flexibles, China Hongqiao Group Limited, Hindalco Industries Limited (Aditya Birla Group), and Novelis.
February 2024: Constantia Flexibles announced that it had inked a deal to purchase about 57% of Aluflexpack's shares, a prominent European packaging producer. Aluflexpack is known for its foil and film packaging expertise, catering primarily to the consumer and pharma industries. This move significantly bolsters Constantia Flexibles' position in the aluminum foil packaging market, spanning various segments.
Aluminum Foil Packaging Market Leaders
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Amcor Limited
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Constantia Flexibles
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China Hongqiao Group Limited
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Hindalco Industries Limited (Aditya Birla Group)
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Novelis Inc.
*Disclaimer: Major Players sorted in no particular order
Aluminum Foil Packaging Market News
- June 2024: Amcor Capsules, in collaboration with Moët & Chandon, unveiled ESSENTIELLE, a plastic-free foil crafted from a blend of aluminum and paper. This initiative underscores the brands' commitment to sustainable packaging, marking a pivotal step in their journey.
- February 2024: Tesco, a leading UK-based supermarket chain, unveiled the nation's inaugural tubeless kitchen aluminum foil, a step forecast to conserve 12.5 million cardboard rolls annually. The retailer stated that this innovation had stemmed from utilizing a cutting-edge rolling machine.
Aluminum Foil Packaging Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHT
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Intensity of Competitive Rivalry
4.2.5 Threat of Substitutes
4.3 Industry Value Chain Analysis
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increased Spectrum of Applications
5.1.2 Sustainable Nature of Aluminum Products
5.2 Market Challenges
5.2.1 Emergence of Alternative Materials with Comparative Barrier Properties and Low Carbon Footprint
6. MARKET SEGMENTATION
6.1 By Type
6.1.1 Rolled Foil
6.1.2 Backed Foil
6.1.3 Other Types (Blister)
6.2 By Application
6.2.1 Converter Foils
6.2.2 Container Foils
6.2.3 Other Applications (Household)
6.3 By End User
6.3.1 Food
6.3.2 Beverage
6.3.3 Pharmaceutical
6.3.4 Cosmetics and Personal Care
6.3.5 Other End Users
6.4 By Geography***
6.4.1 North America
6.4.1.1 United States
6.4.1.2 Canada
6.4.2 Europe
6.4.2.1 United Kingdom
6.4.2.2 Germany
6.4.2.3 France
6.4.2.4 Spain
6.4.3 Asia
6.4.3.1 China
6.4.3.2 India
6.4.3.3 Japan
6.4.3.4 South Korea
6.4.3.5 Thailand
6.4.4 Australia and New Zealand
6.4.5 Latin America
6.4.5.1 Brazil
6.4.5.2 Mexico
6.4.6 Middle East and Africa
6.4.6.1 United Arab Emirates
6.4.6.2 Saudi Arabia
6.4.6.3 South Africa
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles*
7.1.1 Amcor PLC
7.1.2 Constantia Flexibles
7.1.3 Coppice Alupack Limited
7.1.4 China Hongqiao Group Limited
7.1.5 Hindalco Industries Limited (Aditya Birla Group)
7.1.6 Ess Dee Aluminum Ltd
7.1.7 Novelis Inc.
7.1.8 Alcoa Corporation
7.1.9 Penny Plate LLC
7.1.10 Eurofoil Luxembourg SA
7.1.11 Alufoil Products Pvt. Ltd
7.1.12 United Company RUSAL
7.1.13 Zhangjiagang Goldshine Aluminium Foil Co. Ltd
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
Aluminum Foil Packaging Industry Segmentation
The global demand for aluminum foil packaging is anticipated to increase due to aluminum's advantages over plastic and glass in terms of weight, toughness, flexibility, and barrier qualities. Aluminum is the perfect material for various industries and households owing to its simplicity, practicality, safety, lightweight, and durability.
The aluminum foil packaging market is segmented by type (rolled foil, backed foil, and other foils), application (converter foils, container foils, and other applications), end user (food, beverage, pharmaceutical, cosmetics and personal care, and other end users), and geography (North America (United States and Canada), Europe (United Kingdom, Germany, France, Spain, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Thailand, and Rest of Asia-Pacific), Latin America (Brazil, Mexico, and Rest of Latin America), Middle East and Africa [United Arab Emirates, Saudi Arabia, South Africa, and Rest of Middle East and Africa)). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Type | |
| Rolled Foil | |
| Backed Foil | |
| Other Types (Blister) |
| By Application | |
| Converter Foils | |
| Container Foils | |
| Other Applications (Household) |
| By End User | |
| Food | |
| Beverage | |
| Pharmaceutical | |
| Cosmetics and Personal Care | |
| Other End Users |
| By Geography*** | |||||||
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| Australia and New Zealand | |||||||
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Aluminum Foil Packaging Market Research FAQs
How big is the Aluminum Foil Packaging Market?
The Aluminum Foil Packaging Market size is expected to reach USD 27.87 billion in 2024 and grow at a CAGR of 4.94% to reach USD 35.47 billion by 2029.
What is the current Aluminum Foil Packaging Market size?
In 2024, the Aluminum Foil Packaging Market size is expected to reach USD 27.87 billion.
Who are the key players in Aluminum Foil Packaging Market?
Amcor Limited, Constantia Flexibles, China Hongqiao Group Limited, Hindalco Industries Limited (Aditya Birla Group) and Novelis Inc. are the major companies operating in the Aluminum Foil Packaging Market.
Which is the fastest growing region in Aluminum Foil Packaging Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Aluminum Foil Packaging Market?
In 2024, the Asia Pacific accounts for the largest market share in Aluminum Foil Packaging Market.
What years does this Aluminum Foil Packaging Market cover, and what was the market size in 2023?
In 2023, the Aluminum Foil Packaging Market size was estimated at USD 26.49 billion. The report covers the Aluminum Foil Packaging Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Aluminum Foil Packaging Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Aluminum Foil Packaging Industry Report
Statistics for the 2024 Aluminum Foil Packaging market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Aluminum Foil Packaging analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
