Transformation in the packaging industry, starting from simple packaging to creative designs is due to increase in demand for zero waste lifestyle by using plastic-free and eco-friendly alternatives. Sustainability concern for plastic material along with the increased awareness of consumers regarding the environmental issues are promoting the growth of metal as an eco-friendly packaging material. Nowadays, metal has become even more popular because of its durability and sustainability properties. These qualities have been growth promoting factors for the metal packaging companies. Aluminum and steel metals are the two most important types of metals, which are 100% recyclable and also protect food from contamination. Thus, these advantages offered by metal packaging are creating new opportunities to fend off substitution by other materials.
Can type is a viable option in the metal packaging market, as metal cans are unbreakable and provide longevity to products. A merger between Can manufacturers’ and metal packaging manufacturers association is promoting the utilization of resources in metal manufacturing and also enriching the most sustainable packaging design of metal, which is boosting the global metal packaging market revenue.
Out of all metals, aluminum is the most popular metal used in packaging. It is flexible and support unique shapes and style for creative packaging. Lightweight aluminum cans metal packaging offers more accessibility and convenience, especially for food and beverage products. According to the Aluminum Organization, aluminum cans industry’s recycling rate is 63.9% and consumer recycling rate is 49.4%. These key sustainability performance indicators are boosting the adoption of aluminum in the metal packaging market, globally. The global metal packaging market size stood at $130 billion in 2018, and is estimated to grow with a CAGR of 2.70% during the forecast period 2019-2025.
Continuous Demand for Metal Packaging in the Beverage Application:
Metal is tapping more into beverages through can packaging compared to food. This advanced packaging is worthy of a wide range of acceptance, because it is advantageous in new category beverages such as ready-to-drink (RTD) beverages. The slim aluminum can is high in demand, because of its fixed nitrogen-infused widget which helps to ensure maximum product quality and consistency. Additionally, metal packaging also guarantees shelf stability both in refrigerated and ambient temperatures. These factors are stimulating the aluminum cans as the sustainable beverage package, and therefore, there is an increase in the demand for aluminum cans, which has become a profitable segment of the global metal packaging market. Eye-catching cans coupled with fast-growing RTD alcoholic beverages adoption is increasing the metal packaging market revenue. The application of metal packaging in the beverages industry is expanding at a CAGR of 3.4% through to 2025.
Furthermore, aluminum cans are highly preferred over glass and plastic, as it assists municipal recycling programs financially. Growing consumer preference towards artistic designs on packages is playing a crucial role in products. Therefore, these factors are fuelling the growth of the global metal packaging market. Presently, more than a quarter of the world’s population is millennial, who are ready to spend more money on healthy foods, and this is encouraging the growth of sustainable metal packaging.
Metal Packaging Market Trends:
· There is an increase in adoption of metal packaging by organic food producers, as they are more concerned about health benefits and consumer satisfaction. Additionally, protective and preserving traits of this packaging are enhancing the reputation of organic produce.
· The potential of metals for reusability and their accessibility for infinite recyclability without any degradation in the physical properties results in the protection of raw materials and energy. On the other hand, it also supports the reduction in CO2 emission which has become imperative to save the environment.
· Innovation plays a vital role in a competitive retail environment, and it has been resulting in the creation of novel aluminum cans. Stainless steel is currently chosen by the consumers for reusable food and beverage storage as it is durable.The trend of stainless steel in the metal packaging market will witness more growth in the upcoming years, due to the incoming demand from the F&B industry.
The dominance of Metal Packaging Market in the North America Region:
North America is estimated as the leading region, with market share of 34% in the global metal packaging market in 2018. In this region, metal packaging is acting as a smart solution for both product manufacturers and brand owners. Can is the major form of packaging, which aids smart packaging, thereby attracting consumers and also raising competence among brand owners. According to the Association of International Metallizers, Coaters and Laminators, in 2017, 12.3 billion units of dog and cat food were sold using flexible packaging, out of which metal packaging holds a dominating share of 64%, among other packaging materials. Due to fluctuations in consumer preferences, in terms of food processing and packaging materials, style and product presentation are significantly influencing the strategies of metal packaging companies.
Major Players in Metal Packaging Market Include:
Some of the foremost players which are operating in the global metal packaging market are Amcor Limited, Ardagh Group S.A., Alcoa Corporation, CPMC Holdings Limited, Manaksia, Tata Steel Limited, Crown Holdings, Rexam plc, Greif, Inc. and Toyo Seikan Group Holdings, Ltd. These companies have been continuously concentrating on product launches and plant expansions in order to strengthen their product portfolio and stable existence in respective geographies.
Metal Packaging Marketplace:
· Silgan containers is one of the largest food packaging manufacturer in North America. It is a key supplier of metal food containers in the U.S. that mainly produces aluminum and steel containers for human and pet food. Additionally, it also produces composite, metals, and plastic closures for food and beverage products. Moreover, it supplies containers for personal care, pharmaceutical, household, industrial chemical, healthcare, agricultural, and marine chemical products. The automotive industry has also been a target customer for the organization. This company has invested an amount of $15 million for plant expansion at Pennsylvania, Lehigh Valley, in January 2018. This expansion is aimed to fulfill the growing East Coast customer demand and also boost the company share in the metal packaging market.
· Ardagh Group is one of the foremost players involved in growth of the global metal packaging market size. Its ten largest customers of metal packaging are holding a share of 42% of its consolidated revenue till 2018. This company has its metal packaging production facilities in 21 countries across the globe. Metal packaging revenue represented 64% of the company’s total revenue. The increasing footprints of Ardagh across various geographical places and the growth in the company revenue is due to innovative designs of metal products such as aluminum and steel beverage cans, two-piece aluminum, two-piece tinplate and three-piece tinplate food, and other specialty cans that are gaining traction from target consumers of the metal packaging company. Along with this, the maintenance of a significant number of patent families by metal packaging, which is covering a wide range of different products and countries is also contributing to growth of the company in the metal packaging market.
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