Market Overview
The global beverage cans market was valued at USD 24,597.19 million in 2018 and is estimated to reach USD 34,636.11 million by 2026, with a CAGR of 3.92% during the forecast period (2019-2026).
A beverage can is a container, specifically designed to hold liquids such as carbonated drinks, fruits and vegetables juices, flavored drinks, beer, and ready-to-drink teas and coffees etc.,. Consumers are always on the move; this is majorly impacting the beverage consumption habit of consumers. Consumers are seeking a quick, on-the-go and easy solution for beverage consumption. Hence, various brands are focusing on offering beverages in convenient packaging to attract the consumers.
Market Dynamics
Drivers
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Continuous growth of energy drinks consumption globally
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Recycle Properties of Metal Cans
Restraints
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Fluctuating raw material prices
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Presence of Alternative Packaging Solutions
Market Segmentation
The market is segmented based on the Structure, Metal, Can Size, and Beverage Type.
The 2-Piece structure market was valued at USD 24,545.60 million in 2018 and the market is estimated to grow at a CAGR of 3.94% in the forecast period to reach a market value of USD 33,269.10 million by 2026.
2 piece cans are made by forming a cup-shaped container with one piece of steel or aluminum. It can be produced by two manufacturing processes including draw-redraw process & draw-and-iron process. In the recent past, Crown Holdings, Inc., a leading manufacturer of metal packaging solutions, introduced Crown's 360 End, a new range of aluminum 2-piece beverage cans with a full aperture end. In this product range the entire lid of the beverage cans can be removed, thus transforming an aluminum can into a drinking cup. These new can trends reduced the metal use by 10% making the aluminum beverage cans lighter and cost effective in the global market. Japan, the market share for the 2 piece can is more than 80%, and is continuously growing. The demand for the 3 piece cans have been declining as the end user industries are looking for light weight can in order to cut down the cost.
Geographical Analysis
Asia-Pacific is growing at the fastest CAGR of 4.42% during the forecast period (2019-2026).
It is expected to expand at a lucrative CAGR over the forecast period due to the increasing consumption of the alcoholic beverage, surging population, changing lifestyles among teenagers and others. Food and beverage offer opportunities for exporters particularly in emerging markets due to a growth in formal trading as urbanization expands and a rise in purchasing power. In the Asia Pacific region, the typical markets are India and China. Rising demand from developing and emerging countries such as India, China, Indonesia, and Malaysia is expected to drive the market in the region.
A rise in the e-commerce industry also affects the demand for beverage cans. For instance, according to the India Brand Equity Foundation (India), e-commerce has transformed the way business is done in India. The Indian e-commerce market is expected to grow to around USD 200 billion by 2026 from USD 38.5 billion as of 2017. India’s E-commerce revenue is expected to jump from USD 39 billion in 2017 to USD 120 billion in 2020, growing at an annual rate of 51%, the highest in the world. Therefore, increasing the consumption of beer and increasing demand from the e-commerce channel may act as a driver for market growth in near future.
Competitive Landscape
The metal cans market is highly fragmented, owing to the presence of various global and local market players. Vendors in this market participate on the basis of product portfolio, differentiation, and pricing. Key players in the market are Crown Holding, Ardagh Group, Amcor, Silgan Containers LLC, Ball Corporation, etc.
These market players are manufacturing lightweight beverage cans. Light-weighting is emerging as a key trend in beverage packaging that not only fulfills demand for convenience but helps packaging manufacturers and brand owners to reduce their environmental footprint and overall costs.
For instance, In April 2019, Crown Holdings, Inc. announced the launch of round and square shorter cans in the luxury packaging market. This will help the company to broaden its product portfolio.
The industry is distinguished by the presence of buyers such as PepsiCo, AB InBev and The Coca-Cola Company that procure high volume of cans at a high frequency. As a result, the can manufacturers opt for well-established distribution networks to satisfy the static and the dynamic need in case of a promotional activity undertaken by a beverage producer.
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