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Metal Packaging Market - Growth, Trends, COVID-19 Impact, And Forecasts (2021 - 2026)

Published on: Jan 2021 | From USD $4250 | Published By: MORDOR INTELLIGENCE | Number Of Pages: 120

The metal packaging market was valued at USD 138.11 billion in 2020 and is expected to reach USD 193.24 billion by 2026 and grow at a CAGR of 4% over the forecast period (2021-2026). Recyclability of metal packaging is one of the significant factors that is expected to drive the global metal packaging market over the forecast period. Aluminum and steel packaging materials are the two most robust raw materials for packaging due to the superior recycling infrastructure. Most of the North American and European companies prefer to advertise that their products are packed with sustainable materials. In many cases, green/eco -friendly packaging is crucial for the consumers in the region while choosing a product.

- The demand for metal packaging products such as aluminum cans in the United States and Europe has always been on the higher side. With the growing middle -income group population, changing lifestyle, and evolving consumer preferences, the consumption rates in the Asian and Southeast Asian countries are also rising steadily. In June 2019, Hindalco Industries Ltd, a company of the Aditya Birla Group, Can-Pack India, and Ball Beverage Packaging (India), formed a consortium to popularize the use of aluminum beverage packaging. The consortium, called the Aluminum Beverage Can Association of India (ABCAI), advocates replacing plastic and glass with aluminum as packaging material. Moreover, the use of aluminum cans in the country is 5 %, and the association's objective is to help its growth to about 25 % by 2030.
- Metal packaging is also finding extensive application in the food and beverage industry, as it is suitable for protecting food content, ensuring a longer shelf life than most other packaging solutions. In contrast, heavy-duty metal containers, such as drums, IBCs (Intermediate bulk containers), are used in the transportation of oil, chemicals, and bulk liquids. According to the United Nations, the world is urbanizing rapidly; the proportion of people living in urban areas is expected to increase to 66% by 2050. As urbanization is picking up, and rising affluence, diet is changing, characterized by a high demand for packaged food. Additionally, excellent preservative properties and structural integrity of the various metal product types, offering higher shelf life, have resulted in the high usage of metal packaging in the food packaging industry.
- Ready or on-the-go meals have also been witnessing a steady demand for their convenience, especially among consumers with busy lifestyles. Therefore, large organized retailers have started to stack vast amounts of canned food and beverages. Nowadays, offline and online retailers stock a wide range of brands of packaged food items in their stores. Metal packaging is suited as containers for beverages as they are easy to cool, great for keeping the contents fresh and prevent breakages when on the go, due to the material's strength.
- With nearly 98 billion units produced each year and four groups being consumed weekly by every EU citizen, in the wake of COVID-19, Metal Packaging Europe (MPE) association led the European producers of rigid metal packaging to recognize the metal packaging sector as essential in ensuring the uninterrupted flow of critical goods. Expansion projects by multiple beverages can manufacturers have helped the countries meet the growing demand for metal cans over the past few years. However, delays have been experienced due to country-specific travel restrictions and safety concerns. Moreover, multiple supply chain disruptions have led to significant manufacturers to report setbacks. For instance, in May 2020, Ball corporation announced delays in beverage packaging projects in Europe and Brazil due to the restrictions imposed by the COVID-19 pandemic.

Key Market Trends

Cans are Expected to Hold a Significant Share

- Of all the different kinds of metal packages, cans have been the most popular. Ease of use and availability has aided in the adoption of metal cans in several packaging applications over the last century. Additionally, consumer trends, such as a preference for small-size and multi-pack packaging formats, support the volume growth of the global metal cans demand. Increasing demand for mini-cans has been observed, especially in the Asia-Pacific markets, such as India, China, and Japan. Therefore, most of the beverage companies in the region offer mini-cans, which generally contain smaller volumes of products and cost less than the traditional canned products.
- This trend is resulting in more substantial unit consumption. Furthermore, with the increasing environmental concerns, consumers are demanding metal cans due to their low environmental impact. For instance, recycling of steel and tin cans can save up to 74% of the energy used to produce them. According to the data based on the US Census Data and Simmons National Consumer Survey (NHCS), 102.18 million Americans consumed canned meat in 2019. India, China, and Brazil are the countries where demand for canned food is expected to increase over the forecast period, thereby positively impacting the market’s growth.
- Aggressive marketing strategies of beverage companies toward the usage of metal cans have also had an impact on the global metal packaging market. As canned beverages are being considered trendy among the youth, and ready-to-eat or semi-processed canned foods are considered convenient and economical among several global users, the penetration of canned products is increasing rapidly. In 2019, Jiaduobao, one of the leading Chinese producers of canned herbal tea, launched its drink in sleek cans. This is mainly done to attract customers who care more about their health and are choosing to consume healthy food and beverages.
- Metal cans are also gaining traction in the packaged water category. These cans offer sustainability advantages, and significant producers can be expected to continue to invest in developing technologies for beverage can production, light-weighting techniques, and improvement in can functionality. For instance, in 2019, PepsiCo had plans to sell Aquafina’s purified still water in aluminum cans at US foodservice outlets. Additionally, increasing environmental policies and growing focus on recycling is augmenting the need for aluminum material. The focus of companies on improving the eco-friendly brand image is further expanding the growth of the cans segment of the market studied.

North America is Expected to Hold Major Share

- The North American region accounts for a significant share of the metal packaging industry due to sustenance by the high concentration of consumer goods, manufacturers, and packaged goods manufacturers. Owing to this, the packaging industry in this region is well established. Stringent government regulations and standards are responsible for the increased proliferation of metal packaging products in the region. The massive consumption of canned food in North America is also responsible for the increase in the metal packaging industry's growth. Canada observes the effects of steel and aluminum tariffs on the craft beer industry.
- For instance, according to the U.S. Census Bureau, approximately 214.07 million U.S. citizens consumed canned, jarred, or packaged fruit in 2019. Also, nearly 102.18 million U.S. citizens consumed canned meat in 2019. Moreover, most of the organic food consumed/preferred by the consumers in the United States are meat/poultry, yogurt, and juices. The beverage segment constitutes many new specialty drinks, like energy drinks, being delivered in 8.2-ounce cans. According to the Beer Institute, American brewers fill and sell about 36 billion aluminum cans and bottles per year. These cans constitute 62% of the beer volume made and sold in the United States.
- The United States reported witnessing a surge in demand for processed foods like canned soups and vegetables during the outbreak of COVID-19, affecting the metal packaging across the food industry's supply chain. Metal container manufacturers were required to speed up production, but the labor remained a challenge. Crown Holdings, announced to increase production in the U.S. across 2020. The pandemic added urgency to the effort. The company initiated 81 open production jobs at its 25 U.S. plants, in place of third production line being set up at a factory in Nichols, New York. Silgan Holdings has over 50 plants across the United States. The company reported an increase in first-quarter earnings in 2020, partly due to a jump in demand for cans.
- Most of the recyclers in the North American region face contamination, where the recyclable products are affected by the leftovers or unrelated wastes. This is a significant issue in Canada than in the United States. According to a prominent recycler in Ontario, Canada Fibers, if Ontario's average contamination rate reaches 27%, it may cost the recyclers an extra charge of USD 5 million, annually. Furthermore, according to Solid Waste Management for the City of Toronto, a decrease in each percentage point in the contamination of recyclable materials may lower the recycling costs in Toronto by USD 600,000 to USD 1 million, per year.

Competitive Landscape

The metal packaging market is highly competitive and is moderately fragmented that consists of significant individual players such as Ball Corporation, Crown Holdings, Inc., Silgan Holdings, Inc., etc. Many companies are increasing their market presence by introducing new products, expanding their operations, or by entering into strategic mergers and acquisitions.

- January 2020 - Ball Corporation launched a new impact extruded aluminum bottle line that provides a circular solution to plastic pollution. With various shapes and sizes, this impact extruded aluminum bottle can be customized for numerous beauty, personal care, food, and beverage products. Unlike other substrates in these categories, such as plastic shampoo bottles or jars for cosmetics, Ball's aluminum bottles are infinitely recyclable, and can be turned into other aluminum products repeatedly.
- March 2020 - Ball Corporation entered into a purchase agreement to acquire Tubex Industria E Comercio de Embalagens Ltda, an aluminum aerosol packaging business with a plant near Sao Paolo, Brazil, along with associated contracts and other related assets for USD 80 million. The Sao Paolo-area plant includes eight extruded aluminum aerosol can lines, which produce personal care packaging for global and local customers located in Brazil.

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1 INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study

2 RESEARCH METHODOLOGY

3 EXECUTIVE SUMMARY

4 MARKET DYNAMICS
4.1 Market Overview (Coves the impact due to COVID-19)
4.2 Industry Attractiveness - Porter's Five Force 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 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry

5 MARKET DYNAMICS
5.1 Market Drivers
5.1.1 High Recyclability Rates of Metal Packaging
5.1.2 Convenience and Lower Price Offered by Canned Food
5.2 Market Challenges
5.2.1 Presence of Alternate Packaging Solutions

6 MARKET SEGMENTATION
6.1 By Material Type
6.1.1 Aluminum
6.1.2 Steel
6.2 By Product Type
6.2.1 Cans
6.2.1.1 Food Cans
6.2.1.2 Beverage Can
6.2.1.3 Aerosols
6.2.2 Bulk Containers
6.2.3 Shipping Barrels and Drums
6.2.4 Caps and Closures
6.2.5 Other Product Types
6.3 By End-user Vertical
6.3.1 Beverage
6.3.2 Food
6.3.3 Industrial
6.3.4 Cosmetic and Personal Care
6.3.5 Paints and Varnishes
6.3.6 Automotive
6.3.7 Household
6.3.8 Other End-user Verticals
6.4 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 Italy
6.4.2.5 Spain
6.4.2.6 Poland
6.4.2.7 Rest of Europe
6.4.3 Asia-Pacific
6.4.3.1 China
6.4.3.2 India
6.4.3.3 Japan
6.4.3.4 Rest of Asia-Pacific
6.4.4 Latin America
6.4.5 Middle East & Africa

7 COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Ball Corporation
7.1.2 Crown Holdings Inc.
7.1.3 Can-Pack SA
7.1.4 Silgan Holdings Incorporated
7.1.5 Tubex GmbH
7.1.6 Greif Incorporated
7.1.7 Mauser Packaging Solutions
7.1.8 Ardagh Group
7.1.9 DS Containers Inc
7.1.10 CCL Container Inc.
7.1.11 Toyo Seikan Group Holdings Ltd

8 INVESTMENT ANALYSIS

9 FUTURE OF THE MARKET

SECONDARY RESEARCH
Secondary Research Information is collected from a number of publicly available as well as paid databases. Public sources involve publications by different associations and governments, annual reports and statements of companies, white papers and research publications by recognized industry experts and renowned academia etc. Paid data sources include third party authentic industry databases.

PRIMARY RESEARCH
Once data collection is done through secondary research, primary interviews are conducted with different stakeholders across the value chain like manufacturers, distributors, ingredient/input suppliers, end customers and other key opinion leaders of the industry. Primary research is used both to validate the data points obtained from secondary research and to fill in the data gaps after secondary research.

MARKET ENGINEERING
The market engineering phase involves analyzing the data collected, market breakdown and forecasting. Macroeconomic indicators and bottom-up and top-down approaches are used to arrive at a complete set of data points that give way to valuable qualitative and quantitative insights. Each data point is verified by the process of data triangulation to validate the numbers and arrive at close estimates.

EXPERT VALIDATION
The market engineered data is verified and validated by a number of experts, both in-house and external.

REPORT WRITING/ PRESENTATION
After the data is curated by the mentioned highly sophisticated process, the analysts begin to write the report. Garnering insights from data and forecasts, insights are drawn to visualize the entire ecosystem in a single report.

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