The Beverage Cans Market size is estimated to reach $55.2 billion by 2027. Furthermore, it is poised to grow at a CAGR of 5.7% over the forecast period of 2022-2027. Beverage cans are made of metal which is fully recyclable without loss of quality. Beverage cans help to cool quickly and feel extra fresh to the touch. The sound of a can opener is a unique indicator that makes the drink absolutely fresh. Beverage cans provide convenience and portability. Beverage cans are lightweight and durable, they are an ideal fit for active lifestyles without the risk of breakage. Recently, plastic pollution is a core concern for today’s consumers so, the adoption of beverage cans is growing. Additionally, various studies have rightly shown that cans of metal packaging can help preserve the healthy nutrients of the said drink. Also, the price of beverage cans is considered a cheaper option which is another factor contributing to the rise of cans in drinks packaging. Manufacturers are also focusing on advanced technologies and smart augmented reality packaging innovations that help to keep the cans colorful, attractive, and easy to use by inventing temperature-sensitive inks. Hence, increasing strength and robustness are influencing current manufacturing practices in the beverage cans industry.
The robust growth of beverage can in various applications such including but not limited to canned food and beverages, alcoholic beverages, caffeine-based drinks, carbonated soft drinks, fruit and vegetable juices, etc. are some of the factors driving the beverage can Industry forward in the projected period of 2022-2027.
Beverage Cans Market Segmentation Analysis- By Material
The Beverage Cans market based on type can be further segmented into Aluminium and Steel. Aluminum held a dominant market share in the year 2021. The aluminum can is gaining popularity owing to its exceptional technical properties, as well as the fact that it is recyclable and thermally conductive, not to mention extremely lightweight. Recently, most new beverages are coming to market in cans so, customers are moving away from plastic bottles and other packaging substrates to aluminum cans owing to environmental concerns. Beer and soda consumption in the world uses about 180 billion aluminum cans every year. Producing aluminum from recycled aluminum cans only takes 5% of the energy needed to produce new aluminum.
However, Steel is estimated to be the fastest-growing, with a CAGR of 6.4% over the forecast period of 2022-2027. It is owing to their high strength-to-weight ratio, relatively long shelf life, resistance to tampering, ease of stacking or storing, and recyclability. Recently, steel prices are expected to come down as production increases which further results in the demand for steel cans.
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Beverage Cans Market Segmentation Analysis- By Application
The Beverage Cans market based on Application can be further segmented into Alcoholic Beverages, Flavored Alcoholic Beverages, Carbonated Soft Drinks (CSD), Water, Sports & Energy Drinks, and Others. Alcoholic Beverages held a dominant market share in the year 2021. Recently, the consumption of alcoholic beverages increase among adults which gives rise to the trend of adopting beverage cans. Aluminum cans, make up 62% of beer volume produced and sold. One of the largest drivers of this trend has been the ongoing shift towards retail channels like convenience, grocery, and mass merchandiser stores, which tend to feature more canned beer offerings than on-premise retailers like bars and restaurants.
However, Carbonated Soft Drinks (CSD) are estimated to be the fastest-growing, with a CAGR of 6.7% over the forecast period of 2022-2027. The production of new flavors among manufacturers is attracting adults which is enhancing the demand for carbonated soft drinks. Recently, the sales of coca cola’s mini can increase where the trend of adopting diet coke cans becomes more. These factors resulted in the growth in the beverage cans market.
Beverage Cans Market Segmentation Analysis- By Geography
The Beverage Cans market based on Geography can be further segmented into North America, Europe, Asia-Pacific, South America, and the Rest of the World. North America held a dominant market share of 44% in the year 2021 as compared to its other counterparts. It is owing to the robust demand for beverage cans in various applications such as carbonated soft drinks, alcoholic beverages, etc. Recently, 95% of aluminum cans are used to fill beer and soft drinks in the United States and about 100 billion Aluminum beverage cans are produced every year in America, equivalent to one can per American per day.
However, Asia-Pacific is expected to offer lucrative growth opportunities to marketers in the projected period of 2022-2027. It is owing to the increasing millennial population in the likes of the region, additionally, PET bottles have been readily replaced with aluminum and other recyclable metal cans owing to environmental commitments.
Beverage Cans Market Drivers
Growing consumption of carbonated soft drinks, alcoholic drinks, sports/energy drinks, and various other ready-to-eat drinks surging the usage of beverage cans that have readily aided the market growth.
Growing consumption of ready-to-drink beverages encourages manufacturers to produce more beverage cans that help to drive the growth of the market. Recently, owing to rising health-conscious among consumers the adoption of energy drinks increased which further surges the production of beverage cans. Consumers have been growing awareness of the nutritional benefits or ingredients of what they are consuming. Moreover, consumers prefer beverages with sustainable and recyclable packaging that encourages manufacturers to increase the usage of metal cans. Thus, the sales of metal can also increase by 4%.
Growing Environmental concerns among the population resulting from the adoption of metal cans.
Many beverages are packed in plastic containers which causes a negative impact on the environment thus, the demand for beverage cans increases. As per a study by independent researchers, humans use around a million plastic bottles a minute, with an additional 500 billion plastics a year. However, pressure from various government agencies forced manufacturers to reduce the consumption of plastics and increase the production of cans for beverage packaging. Recently, the production of aluminum cans increased as it is 100% recyclable and are environmentally friendly. Thus, the demand for beverage cans increases.
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Beverage Can Market Challenges
Rising prices of raw materials are some of the factors impeding market growth.
Recently, aluminum prices have been rising steadily in 2021, the metal has become about 14 percent more costly, and touched $3,000 per tonne. Thus, the production cost also increases but the higher aluminum price would result in the increased value of used beverage cans, which would benefit informal scrap collectors. Additionally, aluminum cans have a lining of bisphenol A- which is commonly referred to as BPA has been found to be toxic, and manufacturers are required to provide this layer within the cans to prevent the aluminum metal from leaching to the food. In various studies, BPA made lab rats and animals suffer from cancer and other insulin resistance types of diseases. Owing to such challenges the market would face considerable friction.
Beverage Cans Market Competitive Landscape
Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the Beverage Cans Market. The top 10- Beverage Cans Market companies are-
Crown Holdings Inc.,
CPMC Holding Ltd.,
Kian Joo Can Factory,
Showa Denko KK,
Nampak Bevcan Limited,
Toyo Seikan Group
In July 2021, Ball Corporation expanded new aluminum beverage packaging plants that produced millions of cans annually. This expansion allows the company to efficiently serve its end users in the production of ready-to-drink beverages. Ball Corporation planning to build new plants in Western Russia and the East Midlands, UK, adding billions more cans per year to existing capacity. Each facility would produce, from 2023, billions of cans a year across a range of formats and sizes and provide up to 200 skilled jobs in a fast-growing but stable sector.
In May 2021, Volnaa plans to launch packaged drinking water in aluminum cans, making it easier for people to sip on the water on the go, safely. The company aims to tackle the menace of plastic pollution by manufacturing cans that are 100% recyclable with relock revolution. The company’s spokesperson added that the product can go from the shelf to the bins and back to the shelf again within a period of 60 days. Owing to such capabilities the company is expected to register sustainable growth.
In February 2021, Ardagh Group S.A and Gores Holdings V Inc. made a merger agreement. Under this agreement, Gores Holding will merge with the metal packaging business of Ardagh to create an independent public company named Ardagh metal packaging S.A as it holds approximately 80% stake in metal packaging. The company would be listed in NY Stock Exchange, under the ticker symbol -> AMBP. AMP has a leading presence in the Americas and Europe and is the second-largest beverage can producer in Europe and the third-largest in the Americas.
Geographically, North America held a dominant market share in the year 2021. North America is the largest market with its innovative varieties of drinks that surged the usage of beverage cans. Moreover, the lockdown in North America caused a surge in demand for beverage cans as drinkers move away from bars and restaurants to socially distanced home consumption. However, Asia-Pacific is expected to offer lucrative growth opportunities to the marketers in the projected period of 2022-2027 owing to the government incentives to propagate manufacturing-related activities in regions such as India and China. Around 33% of the world’s output (in goods) has been progressed by India and China.
Growing consumption of carbonated soft drinks, alcoholic drinks, sports and energy drinks, and various other ready-to-eat drinks surging the usage of beverage cans that further driving the demand of Beverage Cans Market. However, rising prices of raw materials are some of the factors impeding the market growth.
A detailed analysis of strengths, weaknesses, opportunities, and threats will be provided in the Beverage Cans Market Report.
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