Market Trends of Metal Packaging Industry
Beverage Cans are Expected to Witness Major Growth
- Metal cans, particularly for alcoholic beverages, have gained significant popularity due to their practical benefits and alignment with consumer preferences. These cans offer standard portion sizes, facilitating easier alcohol intake monitoring, especially for high-alcohol content drinks. The lightweight nature of aluminum makes it ideal for beverage packaging, enhancing transportability while reducing transportation costs and carbon emissions.
- New product launches in the non-alcoholic beverage industry contribute significantly to the growth of the metal can market. In January 2023, PepsiCo introduced Starry, a lemon and lime carbonated soft drink packed in cans. Similarly, Monster Energy Ltd launched new zero-sugar beverages in aluminum cans, further driving demand for metal packaging.
- Aluminum cans are gaining traction due to their recyclability, thermal conductivity, and lightweight properties. Beverage brands are increasingly adopting metal cans in response to growing environmental concerns about plastic packaging. According to The World Counts, global beer and soda consumption amounts to approximately 180 billion aluminum cans annually, equivalent to 6,700 cans per second, which could encircle the planet every 17 hours.
- The increasing health awareness among consumers has led to a surge in demand for energy drinks and, consequently, metal cans. Consumers are now more conscious of their sugar intake, driving the need for sugar-free, natural, and organic beverages. This shift in consumer preferences has been a key factor in the growth of the metal cans market within the non-alcoholic beverage industry.
- Red Bull, a leading energy drink brand in the United States with approximately 39.5% market share, reported sales of 12.10 billion cans in 2023, an increase from 11.60 billion cans in 2022.
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Asia-Pacific is Expected to Register the Fastest Growth
- China boasts one of the world's largest metal packaging markets, supported by its substantial manufacturing and consumer goods industries. The demand for metal packaging is primarily driven by the food and beverage, pharmaceutical, cosmetic, and home goods industries.
- China has experienced an increase in the adoption of sustainable packaging solutions, influenced by growing environmental awareness and regulatory measures. Manufacturers are exploring environmentally friendly options such as recyclable metals and eco-friendly can coatings. Stricter environmental regulations and consumer demand for sustainable packaging are expected to drive the development of recyclable materials and environmentally conscious production processes.
- In October 2023, Budweiser Brewing Company APAC Limited launched a "Can-to-Can" recycling program in China. This initiative aims to increase the use of recycled aluminum cans and contribute to the company's goal of reducing carbon emissions by 35% by 2025. The company has committed to leading efforts toward China's carbon reduction targets and achieving net-zero emissions across its value chain by 2040. China's national goals of peaking carbon dioxide emissions before 2030 and achieving carbon neutrality by 2060 are expected to further stimulate the growth of metal packaging solutions in the country.
- India's can and industrial metal packaging market has been experiencing steady growth, driven by the expansion of the country's paint and coating, personal care, and food and beverage industries. Metal packaging solutions are valued for their strength, recyclability, and barrier properties. These characteristics make them popular in industries such as food and beverage, pharmaceuticals, personal care, and chemicals, including paints and coatings.
- Innovations in technology and manufacturing processes have enhanced the quality, efficiency, and customization capabilities of metal packaging solutions in India. As the world's sixth-largest economy and rapidly industrializing nation, India is creating new opportunities for businesses of all sizes. This economic growth is expected to drive further expansion in the country's metal packaging market.
- According to Hong Kong Exchanges and Clearing Limited, energy beverages accounted for the majority of the market, with retail sales of around USD 11.11 billion in 2019. The value of retail sales of energy drinks was expected to exceed USD 17.61 billion by 2024.
- As the energy beverage market grows, the demand for packaging solutions, including metal cans, will rise correspondingly. Energy drinks are commonly packaged in metal cans due to their durability, lightweight nature, and ability to preserve the beverage's freshness. This increase in demand directly benefits the metal packaging industry.
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