Metal Packaging Market Anticipated to Touch a CAGR of 2.70% During the Forecast Period (2022-2027).
Packaging is referred to the wrapping or bottling of products to keep them safe from damages during storage and transportation. Metallic containers have remarkable properties such as mechanical strength, gas impermeability, opacity, relative chemical inertness, thermal conductivity, and recyclability. Thus, they are widely used in various end-use industries such as food and beverage, healthcare, and personal care for storing and transporting goods. Rapidly rising population, changing customer preference, improving disposable income, urbanization, increasing women workforce, internationalization of commerce, and rising demand for on-the-go food products drive the metal packaging market.
Although metal packages have high recyclability and can minimize the material used in the manufacturing process, they consume a large amount of energy in the manufacturing and recycling process. Today, energy conservation is of utmost importance; thus, customers are inclined toward resources that are sustainable and energy-efficient, further rising the demand for green packaging. Green packaging uses eco-friendly materials such as starch-based biomaterials, plant-based biomaterials, and biodegradable packing peanuts. These packaging have minimum to no impact on the environment and energy consumption.
Stringent government regulation guarding the use of metal packaging such as framework regulation (EC) 1935/2004 for food contact materials and (EC) No 242/2004 for inorganic tin is compelling the manufacturers to broaden their current portfolios and introduce green packaging. For instance, in May 2019, Walki Group acquired Plastiroll Oy, a sustainable packaging material producer from Finland, to broaden its sustainable packaging materials portfolio.
Steel packaging consists iron ore, coke coal, and limestone and has remarkable properties. Steel is considered the world’s most recyclable metal. Moreover, steel scraps can be used to make new steel products, which aids in reducing the emission of CO2 by 1.5 times. The market has been experiencing a deficient supply of steel in North America due to the ongoing trade war between the U.S. and China. This has led to volatility in steel prices in many countries across the globe.
The aluminum packaging segment dominated the metal packaging market in 2019 and will continue the same during the forecast period. The segment’s most prominent driver is its unique physical properties such as lightweight, easy transportability, higher efficiency, and lower CO2 emissions, making it the material of choice in the food and beverage and pharmaceutical industries. In the metal packaging industry, aluminum is used for rigid and semi-rigid packaging and flexible packaging.
The semi-rigid packaging comprises food and beverage cans, aerosol cans, caps & closures, and barrels and drums. Whereas, the flexible packaging includes thin laminated aluminum foils. The semi-rigid packaging has high aluminum content and recyclability rate. Thus, the semi-rigid packaging segment holds the highest share in the aluminum segment.
The food & beverage segment held the largest market share in 2019 and is projected to dominate the metal packaging market during the forecast period. Rising consumption of alcohol and other refreshing drinks and shifting preference towards sustainable and recyclable beverage cans drive the market growth. The food & beverage industry has been growing at an unprecedented rate in the last few years. Thus, the manufacturers are focusing on environment-friendly and cost-efficient packaging, such as aluminum and steel.
Changing customer preference, rising population, and increasing disposable income are compelling the manufacturers to employ advanced technologies to provide their customers with superior quality products. The demand for package and processed food has been increasing at a considerable rate in the last few years, which is further increasing the demand for metal packaging for the safe transport of food products from the manufacturer to customer.
Sustainability is one of the megatrends driven by changing customer preferences and their inclination towards sustainable products with high transparency. The prominent players in the market are actively working to gain maximum market share by competing in terms of cost, product quality, reliability, recyclability, and transparency. The players are also employing cutting edge technologies to reduce the production cost and increase recyclability rate. Additionally, the players are engaging in strategic collaboration, partnership, product launches, and mergers & acquisitions to gain a competitive edge and expand the customer base.
Report Metric | Details |
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CAGR | 2.70% |
Forecast Period | 2023-2031 |
Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends |
Segments Covered |
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Geographies Covered |
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