Market Trends of Europe Metal Packaging Industry
Increased Wine Consumption in European Countries is Expected to Drive the Sales of Metal Closures
- Flavor and aroma are the major aspects focused upon in the wine industry. The urge to preserve the freshness and quality of wine for a longer period is the major factor driving the sales of metal closures for wine bottles. Metal closures create a highly effective barrier that helps prevent the content from contamination and moisture. Also, the cost-effective and recyclability benefit offered by metal closures makes it an ideal choice for wine bottles. As per the study provided by Aluminium Closures Group (part of AMS Europe eV), four out of ten aluminum closures consumed in Europe are recycled.
- The winemakers and packers focus on the environmental impact, starting from the vineyard to the recycling process after use, giving the metal closure manufacturers a competitive advantage. Aluminum closures have a low environmental impact compared to other closure types. According to the Life Cycle Assessment (LCA), aluminum closures have better environmental performance and reduce the instances of bottled wine wastage due to corkage by 2% to 5%. Also, the aluminum closures are manufactured in bulk, which adds to the cost-benefit. The aluminum closures are made across the world and are a part of the local value chain. This helps in immediate reaction to the end-use industry needs as it can be transported economically.
- The availability of different types of metal closures helps to address the sealing concern for different types of wine. The screw caps are the most common metal closures used for sealing wine bottles due to the ease of use and the ability to preserve the quality of wine. Screw caps help in preventing the oxygen from entering the bottle as well as provide airtight sealing to it. In addition to this, it is also easy to open and reseal the bottle using a screw cap, which makes it a convenient choice for consumers. The crown caps are specially used for sparkling wines to provide a secure seal to the product.
- The innovations by metal closure manufacturers are gaining traction among winemakers and wine packers. For instance, Guala Closures Group offers NěSTGATETM, a range of connected closures for the wine market. The closure is equipped with a single-chip NFC, which will help detect unauthorized openings of the product. The company continues its commitment to supporting spirit and wine producers by adapting technological innovation.
- During the COVID-19 pandemic, wine consumption decreased due to the closure of bars and restaurants. However, the share of aluminum closures for wine in Europe increased by 2% as the retail sales of wine remained stable. Besides this, the European Union has initiated destroying the wine surplus in France, which may hamper the growth of metal closures used for wine packaging.
- Wine consumption and production in the European countries is high compared to other countries. Europe accounted for around 61% of the wine production in the world for the year 2023, according to the report presented by the International Organization of Vine and Wine. Wine production is high in France, followed by Italy, Spain, Germany, Portugal, and other European Countries. Therefore, the increased wine production and consumption in the region is expected to surge the demand for metal closures.
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Increasing Cosmetic SMEs in the United Kingdom to Push the Demand for Metal Packaging
- The rising demand for aerosol dispensers in the cosmetic industry in the United Kingdom reflects the rise in demand for metal packaging. The aerosol containers used in the cosmetic and personal care industry are mostly made from steel and aluminum. The deodorants and sprays are packed in aerosol containers for ease of dispense.
- The aerosol containers are hermetically sealed, reducing the chances of leakage, which is a major concern for Gen Z, who are the major consumers of cosmetics and personal care products. The product can be easily applied to any large or small area using aerosol dispensers, which makes it an ideal choice for various cosmetics and personal care products. Also, the application of aerosol dispensers, such as sunscreen application, is increasing in the industry.
- The United Kingdom is the fourth-largest cosmetic and personal care market in the European countries, followed by Germany, France, and Italy. Besides this, the number of cosmetics and personal care SMEs is rising in the United Kingdom. The United Kingdom ranks first in terms of the number of cosmetics and personal care SMEs, followed by France, Poland, and Italy, according to data from the Cosmetic, Toiletry and Perfumery Association (CTPA). This is expected to aid the growth of the metal packaging market for the cosmetic and personal care industry.
- With the rising number of cosmetic and personal care SMEs, aerosol production in the United Kingdom is also high. Recently, the United Kingdom accounted for around 27% of the total aerosol production in Europe, which is 1,436 million units (Source - FEA). Cosmetics and personal care are the major end-use applications for aerosol containers, representing around 55% of European aerosol production. The availability of raw materials in the country provides added benefits to metal packaging manufacturers, resulting in reduced costs for imported materials.
- The introduction of the Plastic Packaging Tax in the United Kingdom may create growth opportunities for recyclable metal packaging solutions. Also, cosmetics brands that are focusing on achieving sustainability targets will focus more on recyclable and harmless materials for product packaging. This may push the sales of metal packaging in the cosmetic and personal care industry in the United Kingdom.
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