Beverage Cans Market

SKU: DMFB2702 | Last Updated On: Aug 29 2022 | Available Formats

> Beverage Cans Market Expected to reach a high CAGR of 2.9% during 2022-2029

Beverage Cans Market is segmented By Structure (2-Piece, 3-Piece), By Metal (Aluminum, Steel), By Can Size (250ml, 330ml, 500ml, 550ml, Others), By Application (Alcoholic Beverages, Carbonated Soft Drinks, Fruit & Vegetable Juices, Sports & Energy Drinks, Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2022-2029

Beverage cans market size was valued at USD 28,291.6 million in 2021. It is forecasted to reach USD million by 2029, growing at a CAGR of 3.92% during the forecast period (2022-2029). Of late, canned food & beverage products are becoming an important part of everyone’s daily life across the world. Additionally, with the increasing demand for canned food & beverage products, large organized retailers have started to stack an extensive amount of canned food & beverages, owing to which the demand for metal packaging is growing at a significant rate in the market due to its immobile inherent properties. An increase in the use of metal packaging for food & beverage packaging provides a sustainable and environment-friendly solution for packaging in multiple applications. Aluminum cans are convenient to keep in refrigerators and ovens. Changes in consumer preferences are observed for food & beverage packaging. Rising awareness regarding the benefit of recycling properties of metal cans is projected to contribute to the growth of the beverage cans market during the forecast period

Beverage Cans Market Growth Dynamics

Recycle properties of metal cans

All metal cans are infinitely recyclable. It doesn't matter if they are aluminum drink cans, tin, steel, bi-metal food cans, and others cans. Metals can be recycled repeatedly without altering their properties. As per an article published by the American Iron and Steel Institute (AISI), steel is the most recycled material as compared to other metals. The other highly recycled metals include aluminum, copper, silver, brass, and others. Even though, almost every kind of metal can easily be recycled again as well as again without degradation of properties. According to a report, currently, more than 30% of metal is recycled. More than 42% of crude steel in the United States is made of recycled materials. Every year, more than 400 million tons of metal are recycled across the world.

Currently, the single most recycled consumer product in the United States is the aluminum can. Many foods, as well as drink products, are packaged in cans that are made from aluminum, steel, or other material. These materials can be recycled after finishing with them to make either new cans or other products. In addition, steel can also be recycled time and time again without loss of quality and simply recycling steel cans can conserve non-renewable fossil fuels, and reduce the consumption of energy and the emission of gasses such as carbon dioxide into the atmosphere. Many foods, as well as drink products, are packaged in cans that are made from either aluminum, steel, or other material. These materials can be recycled after finishing with them to make either new cans or other products.

However, fluctuating raw material prices are expected to act as a major restraint to market growth. Some of the major raw materials required for beverage cans manufacturing are aluminum, steel, tin, and others. Fluctuating raw material prices, as well as the threat of substitution from plastics, are key problems faced by the industry participants. In October 2019, "A broad shift to aluminum cans would raise costs for drinks companies, also including new manufacturing infrastructure, some of which are likely to be passed on to consumers, thus hitting products' competitiveness against plastic rivals. The steel beverage cans are witnessing below-average growth owing to concerns regarding interaction with the can contents. Decreasing demand for 3-piece steel cans owing to complexity in manufacturing is expected to act as a restraint for the market growth. The demand for the products is also affected by the fluctuating prices of the raw materials used in the production of metal sheets. Therefore, fluctuations in raw material prices and complexities in the manufacture of steel beverage cans are expected to restrain the beverage cans market.

Beverage Cans Market Segmentation

Aluminum segment accounted for the highest share in the global beverage cans market

Increasing the use of metal packaging for food & beverage packaging provides a sustainable and environment-friendly solution for packaging in multiple applications. Aluminum cans are convenient to keep in refrigerators and ovens. The market for beverage cans is highly dominated by the use of aluminum cans on account of superior properties such as lightweight and growing aluminum recycling primarily in Europe and North America. In addition, increasing demand for aluminum cans for use in packaging alcoholic beverages such as beer is expected to drive market growth over the forecast period. In addition, increasing recycling programs undertaken by the national governments of the U.S. and United Kingdom owing to concerns regarding depletion of natural resources is expected to drive the demand for aluminum cost. Changes in consumer preferences are observed for food & beverage packaging. According to the Environmental Protection Agency of the United States (EPA), 0.67 million tons of aluminum packaging was generated for beers and soft drink cans, and 50.4% of aluminum beverage cans were recycled, as of June 2022.

Geographical Penetration: North America is the dominating region during the forecast period

A large share of the North American region can be attributed to the high consumption rate of beverages, the rising purchasing power of people, and the increasing demand for beer in cans and aerated soft drinks. For instance, according to an article published by the National Beer Wholesalers Association (United States), the United States beer industry sold more than 208.6 million barrels of beer, in 2021. Around 81% of all beer was domestically produced, and around 19% was imported from more than 100 different countries worldwide, in 2021. In 2020, the beer sold in cans accounted for more than 60% of all beer sold, glass bottles accounted for more than 30% and draft beer was around 10%. According to the beer shipment data and the United States Census population statistics, in the United States, at age 21 years or above consumed more than 26 gallons of beer and cider per person during 2020. More than 246 million people and 74% of the population are over the age of 21 and considered legal drinking age.

Moreover, North America is among the biggest consumer of aluminum cans and the region is mainly dominated by a large number of consumers of packaged food and beverages in the world. Strong investment in R&D and technological advancements are expected to have a positive impact on the domestic production of the food & beverage metal cans market in North America. These factors drive the market for food & beverage metal cans in the North American region

Beverage Cans Market Segmentation

Alcoholic beverages segment is expected to be the largest segment with a share of 5.3% during the forecast period

The global beverage Cans market has been segmented by type into carbonated soft drinks, alcoholic beverages, and fruit & vegetable juices among others. The alcoholic beverages segment held the largest share as of 2020, owing to the increased consumption of alcoholic beverages globally. High demand for alcoholic beverages during various sports events such as Barclays Premier League and basketball leagues is expected to drive the demand for alcoholic beverage cans. In addition, extensive promotional activities organized by leading beverage manufacturers such as Coca-Cola and PepsiCo to promote the consumption of beverage cans are expected to drive the industry demand. The carbonated soft drinks segment is also set to have growth owing to the increased consumption and availability of new flavors of drinks by different manufacturers.

Beverage Cans Market Scope

Metrics

Details

Market CAGR

3.92%

Segments Covered

By Structure, By Metal, By Can Size, By Application, and By Region

Report Insights Covered

Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other key insights.

Fastest Growing Region

Asia Pacific

Largest Market Share 

North America


Competitive Landscape:

There are several established participants in the industry and local manufacturers; hence, the market is fragmented. Some major market players are Crown Holdings, Inc., Amcor PLC, Toyo Seikan Group and Ball Corporation among others. Some major key players are following strategies such as geographical expansion, merger and acquisitions, and product launches to expand their business. For instance, in March 2022, Crown Holdings announced that it is going to expand its UK footprint with a new beverage can plant. Construction on the Peterborough plant will begin during the second quarter of 2022 with the first line expected to commence production during the second quarter of 2023. In July 2022, Crown Holdings, Inc. announced that it is constructing a second high-speed line at its Parma, Italy, aluminum beverage can facility. The company said the additional capacity will help meet growing demand in Italy and surrounding markets and produce an estimated one billion cans annually starting in the first quarter of 2023.

COVID-19 Impact: Negative impact on the global Beverage Cans market

The beverage can industry has witnessed significant disruption both in terms of raw material procurement, production, and supply. The metal prices were likely to remain volatile during and post-crisis owing to uncertainties in demand and the halt of aluminum production activities. According to packaging industry statistics, aluminum cost account for nearly 40% of the total can production cost. Thus, any rise in aluminum price will result in a significant cost burden on beverage can producers. Furthermore, factors such as city-wide lockdowns, social distancing, and self-quarantine across the globe result in an abrupt lack of manual workforce in production plants. The unavailability of plant labor is posing a considerable economic impact on production activities. For instance, Steel Authority of India Limited (SAIL) the largest public sector steel manufacturer announced a temporary production disruption due to labor shortage and is operating at a plant efficiency of 60%. The supply of aluminum cans is also likely to disrupt amid restrictions on transport and logistics services. Can manufacturers form supply agreements mostly annual or biennial with beverage companies? The lapse of trade duration and inventory costs resulted in an economic burden on the companies.

The global beverage cans market report would provide an access to approximately 61 market data tables, 53 figures, and 170 pages

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