Aluminum Beverage Cans Market

Market Overview

The global aluminum beverage cans market size was valued at USD 53.9 billion in 2023 and is projected to reach a value of USD 70.1 billion by 2032, registering a CAGR of 2.96% during the forecast period (2024-2032). The increase in aluminum beverage cans' market share during the forecast period is related to the high recyclability of metal packaging over traditional materials.

The aluminum beverage can is counted as a container with one of the highest recycling rates. These cans generally have a recycling rate of around 60–65%. However, these recycling rates might differ in the waste collection capacities in the region. There is an increasing demand for specialty cans in both developed and emerging markets, owing to the growing awareness about recycling among manufacturers, policymakers, and consumers. This has led to several initiatives along the lines of the ‘Can Collection Programs,’ which has led to an increase in the recycling rates of this product.

On average, any country can save around USD 1 billion (figures may vary depending on the usage of the can) by recycling aluminum cans. Aluminum cans are preferred because of their high recycling rate, which uses around 90% less energy, and is responsible for an equal amount of lesser greenhouse gas generation. Global authorities and companies are in a bid to reduce their carbon footprint, raising the demand for aluminum beverages.

Highlights

• 2-Piece Cans holds a significant market share by product type.
• Alcoholic beverages lead the market by industry.
• Direct sales channel dominates the global market in the distribution channel segment.

Market Dynamics

Aluminum Beverage Cans Market Drivers

Embossing and Debossing: A World of Creativity

The beverage industry has experienced rapid growth in recent years, driven by increasing disposable income, rapid urbanization, and changing lifestyles. This growth has attracted numerous players, resulting in fierce competition. Creating brand value and enhancing brand loyalty is crucial in today's competitive business environment. Key players are innovating to provide a superior consumer experience, and aluminum cans offer a canvas for creativity that appeals to consumers, especially millennials.

Additionally, digital printing technology on cans has revolutionized the market. Beverage producers are utilizing techniques such as embossing and debossing to boost sales. Leading beverage brands increasingly adopt these techniques to make a lasting impression on consumers. For instance, Crown Holdings, Inc. expanded its product portfolio with Reveal Ink, offering a unique tactile finish that changes the appearance and feel of beverage cans, ideal for creating a frosted or wet look for beers, flavored water, or hard seltzers. This innovation is driving the demand for metal packaging in the beverage industry.

High Recyclability of Metal Packaging

Metal cans are preferred by many beverage manufacturers worldwide due to their high recyclability. Aluminum cans are lighter than steel ones, making them more viable. Stringent government regulations to reduce environmental pollution are a significant driver of the beverage can market. The circular economy process of metal materials exemplifies sustainability, as they can be continually recycled. Using recycled aluminum in beverage can manufacturing saves 92% of the energy required to produce new cans. According to the Aluminum Association, aluminum scrap is worth an average of USD 1,317 per ton, compared to USD 299 for recycled plastic and USD 20 for recycled glass. Similarly, recycled steel cans help conserve non-renewable fossil fuels and reduce carbon dioxide emissions.

Aluminum Beverage Cans Market Restraints

Availability of Pouches and Simpler Packaging 

The packaging industry has evolved due to increasing environmental concerns and shifting consumer preferences towards sustainability. Packaging is pivotal in the manufacturing industry, particularly the food and beverage industry. Manufacturers demand safe, durable packaging solutions for spill-free transportation and reduced logistics costs. The key players are introducing multiple solutions made of different materials to accommodate the growing demand for various packaging solutions while maintaining environmental standards. Introducing smart pouches for beverages with a diverse range of spouts and easy-to-drink, pour, clean, and environmentally-friendly properties drive the market growth.

Furthermore, cartons are widely used across the globe for the packing of billions of milk, juices, and other liquid foods. Most fruit-based drinks, RTD beverages, and milk-based products are packaged in cartons of different sizes. They help provide consumers with more convenience and the optimum shelf life of the product. Cartons are witnessing a surge in demand as they preserve products long without requiring many preservatives. The emergence of eco-friendly plastic packaging solutions for beverages offers advantages, such as less raw-material requirement, lightweight, and large container variety. However, single-serve packaging tube options for wine, cocktails, and spirits for downsized portions and improved recyclability are further limiting the revenue potential of the beverage market.

Aluminum Beverage Cans Market Opportunity

Portability of Cans Enhances Usability

The market for beverage cans is anticipated to experience a forthcoming surge as a result of the evolving work habits of consumers worldwide. Increasing household income, consumer demand for improved quality and safety, and heightened awareness regarding the importance of maintaining a healthy diet in portable formats are the primary factors driving the market demand for cans. Extensive demand exists for beverage cans in developed regions, including North America and Europe, while developing regions, including Asia-Pacific, are experiencing a gradual expansion. Potential beverage cans growth in the future will be bolstered by the demand for organic and fresh beverages, particularly in the non-carbonated market segment.

In addition, demand for beverages with enhanced nutrients has increased in every region. Additionally, the use of cans for various forms of water has increased, mainly flavored water. The modifications above have progressively augmented the market demand for beverage can formats. Furthermore, canning preserves healthy beverages' fiber content, extending their shelf life without compromising quality. This characteristic makes canning an ideal choice for beverage manufacturers developing soft-functional beverages.

Increasing Need for Durable and Lightweight Alternatives

The increasing demand for recyclable and long-lasting packaging options provides the global aluminum beverage cans industry with a substantial opportunity. Consumers highly regard aluminum cans due to their lightweight composition, long-lasting durability, and environmentally friendly design. This trend is anticipated to benefit the market, particularly in light of the shifting consumer preference for more sustainable packaging solutions, technological advancements, and heightened consumer health and wellness awareness. The market for aluminum cans is anticipated to sustain its favorable growth trajectory in the coming years, propelled by elements such as consumer demand, technological advancements, and investments from major industry participants.

For instance, PET bottles are considered a better and more eco-friendly alternative to aluminum cans. PET bottles use Less energy, generate less solid waste, create significantly fewer greenhouse gases, and offer a better environmental footprint than aluminum cans.

Regional Analysis

The global aluminum beverage cans market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

Asia-Pacific Dominates the Global Market

Asia-Pacific is the most significant market shareholder and is estimated to grow at a CAGR of 2.5% over the forecast period. The Asia-Pacific region is expected to have a dominant position in the market, driven by the increasing consumption of canned beverages and the growth of the middle class. China is expected to have a substantial market share due to its growing urbanization, expanding disposable income, and changing consumer preferences. The area is anticipated to experience significant expansion in the aluminum beverage cans market, propelled by technological developments and a rising demand for convenient packaging.

North America is estimated to grow at a CAGR of 3.1% over the forecast period, encompassing the United States and Canada. It commands a substantial portion of the worldwide aluminum beverage cans market. The region experiences strong and resilient demand for beverage cans across various applications, including carbonated soft drinks, alcoholic beverages, and others. Aluminum can sales in North America are projected to sustain growth due to the rising demand for canned drinks and the desire for environmentally friendly packaging options.

Europe, including prominent nations such as Germany, France, the U.K., and Italy, holds a substantial position in the worldwide aluminum beverage cans industry. The chemical sector in Germany is experiencing significant expansion, creating favorable conditions for market growth. There is a growing demand for processed and packaged foods in the region, increasing the use of aluminum cans. Moreover, it is anticipated that the United Kingdom will possess a substantial portion of the market in the foreseeable future, thereby bolstering Europe's supremacy in the aluminum beverage cans industry.

Segmental Analysis

The global aluminum beverage cans market is segmented based on product type, industry, and distribution channel.

The market is further segmented by product type into 2 Piece Can and 3 Piece Can.

2-Piece Cans are constructed by seam-seam joining two pieces of aluminum. The most prevalent variety of aluminum beverage cans is manufactured starting with a planar aluminum sheet that is subsequently shaped into a cylindrical form and joined at the seams using welding. Various coatings are applied to the resultant can, which varies according to its intended purpose. Consumers favor 2-piece cans because of their sustainability, lightweight construction, and robustness. They are utilized in the production of, among other beverages, carbonated soft drinks, lager, and ready-to-drink teas and coffees.

3-Piece Cans consist of the bottom, body, and cap of these three-piece aluminum cans, each constructed separately. The bottom and body are drawn or drawn and ironed from a shallow cup or flat plate, while the top is fastened onto the can after filling. Three-piece cans have several benefits over steel (tinplate) cans, including a competitive price, lightweight construction, easy-to-open aluminum ends, a streamlined appearance, and corrosion resistance. Nevertheless, 2-piece cans are more widely utilized owing to their more straightforward production method and reduced expense.

The market is further segmented by Industry into Carbonated Soft Drinks, Alcoholic Beverages, Fruit and Vegetable Juices, Tea and Coffee.

Alcoholic beverages control a significant portion of the market for aluminum beverage cans. An increase in adult alcoholic beverage consumption has resulted in a corresponding surge in the utilization of beverage cans. Aluminum cans comprise 62% of beer volume produced and sold, and aluminum cans comprise a significant portion. A key factor propelling this segment has been the trend toward increased canned beer availability in retail channels.

Fruit and vegetable liquids constitute an additional sector within the aluminum beverage cans industry, serving consumers who desire packaging alternatives that are both convenient and environmentally sustainable. This segment contributes to the overall demand for aluminum cans despite being less dominant than carbonated soft drinks and alcoholic beverages, particularly as consumers seek healthier options.

The market is further segmented by distribution channel into direct sales channel and distribution channel.

A direct sales channel refers to a method in which the manufacturer sells their items directly to the end consumers, bypassing intermediaries. This technique enables producers to control pricing, branding, and consumer relationships. Direct sales channels encompass many avenues, such as internet sales platforms, retail locations owned by the corporation, and direct sales to enterprises.

Distribution channels are the intermediaries responsible for distributing and selling products from manufacturers to end consumers. These intermediaries encompass wholesalers, distributors, retailers, and e-commerce platforms. Distribution channels are essential for expanding the reach of a business to a more extensive client base, effectively managing inventory, and providing logistical assistance.

Recent Developments

• February 2024 - Emirates Global Aluminium (EGA), the prominent aluminum industry leader in the United Arab Emirates (UAE), has collaborated with beverage can manufacturers Crown and CANPACK to introduce "Every Can Counts," a pioneering initiative designed to encourage the recycling of used aluminum beverage cans. This effort, implemented during the 28th Conference of the Parties (COP28), signifies a pivotal advancement in promoting a circular economy in the United Arab Emirates.
• January 2024 – A deal between Novelis and Ardagh Metal Packaging USA to supply aluminum beverage can sheet. Novelis has signed three large beverage packaging agreements in North America in less than seven months. The partnership shows the region's strong beverage packaging sector, driven by consumer demand for sustainable options. Novelis is building a new rolling and recycling plant in Bay Minette, Alabama, the first fully integrated aluminum plant in nearly 40 years. It will produce 600,000 tonnes of finished goods for North American beverage packaging and automotive markets.