Drink cans market trends, demand and dynamic innovation
The global drink cans market is to reach US$ 50 Bn in 2021, with sales predicted to grow by 8.5% CAGR between 2021 and 2031. After bucking initial impact of the COVID-19 outbreak, demand for drink cans are expected to surge 2021 onwards. Total volume is forecast to reach 524 Bn Units by the end of 2021. In terms of volume, sales of drink cans are projected to increase at 8% CAGR over the forecast period.
Drink can demand is likely to rise as the food and beverage industry ramps up production. Over the previous few decades, the worldwide beverage industry has grown at an exponential rate, and this trend is likely to continue over the projection period.
Markets in Asia-Pacific, Latin America, the Middle East, and Africa are quickly developing in terms of market volume and quality, in addition to the mature markets of North America and Europe. Furthermore, sales of drink cans are likely to increase in the coming years as demand for non-alcoholic and alcoholic beverages grows. Food and beverage industry growth is expected to be boosted by rising food consumption costs in emerging nations. This will almost certainly boost demand for drink cans all around the world.
Further, shifting consumer preference towards sustainable and eco-friendly packaging has led to a spike in demand for packaging solutions that can be recycled. One of the most recycled packaging format is drink cans. Recycling doesn’t degrade the quality of metal as drink cans made from aluminium/ steel are completely recyclable, which makes this process profitable to manufacturers.
Moreover, in comparison to other conventional packaging formats, drink cans do not pose threat to the environment, as most of it gets recycled. During the process of recycling drink cans produce negligent amount of carbon footprint, adhering to the environment policies.
Factors such as recyclability, client specific customisation, and increasing demand for small quantity beverage containers is anticipated to continue fuelling sales of drink cans through 2031.
- By capacity type, the 201 – 450 ml segment is anticipated to account almost 30% market share by the end of forecast period.
- In terms of product type, the 2 – piece cans segment is anticipated to expand by 2.3x over the forecast period.
- In the end-use industry segment, the non-alcoholic beverages segment is expected to account for 61% of the total market share by 2031.
- The US is projected to account for 72.5% of the North America drink cans market in 2031.
- China will emerge as a lucrative market, holding 42% of the drink cans market in East Asia region.
- India is forecast to account for nearly 31% of the South Asia drink cans market by 2031.
- Sales of drink cans in Japan are anticipated to grow at a 9.6% CAGR through 2031.
Novelis, Ball Corp., Crown Holdings and Silgan Holdings are top players operating in the drink cans market. Furthermore, SHOWA DENKO K.K., Toyo Seikan Group Holdings Ltd., CPMC Holdings Inc., and CAN Pack S.A. are also noticeable players in the drink cans market. The 3-tier players in the market hold 50-60% of the global drink cans market. Key players are expected to account for almost 30-40% of the global drink cans market share over the forecast period.
Leading players operating in the global drink cans market are investing in strategic collaborations and acquisitions to expand their product portfolios and global footprint. For instance:
In 2021, Novelis completed the construction of US$ 150 Mn aluminium rolling and recycling operation in Brazil. Moreover, the company acquired Aleris in 2020 to enhance the strategic position in Asia.
In 2020, Crown Holdings Inc. has been recognized by Berlin Packaging as “Supplier of the Year 2019”. Crown Inc. also established manufacturing plant in Nicholas, New York to support demand for specialty cans.
During the unprecedented Covid-19 pandemic, supply chains and production activities were hampered to an extent. Though lockdowns were enforced, partial or complete, manufacturing, and export-import of necessities and materials continued. The World Bank has estimated a loss of US$ 10 Trillion in earnings during the pandemic.
Disruptions in manufacturing and supply of drink cans also had a negative impact on growth of the market, affecting medium and small scale companies by hampering profit margins. This has resulted in an overall loss of over -2.6% of market value in 2020.
However, increasing sales of food and beverages post-pandemic are expected to provide impetus to growth of the drink cans market. In addition to this, growing demand for convenient and eco-friendly packaging solutions from the beverage industry will continue fueling sales of drink cans through 2031.
Companies operating in the drink cans market are aiming at expansions and strategic partnerships with other manufacturers to expand their product manufacturing capabilities, product portfolio and global presence. For instance:
- In 2021, Ardagh Group’s Mississippi beverage can manufacture unit has been awarded 2020 carbon emission award from Tennessee Valley Authority. Also, company proposed merger of its beverage can business with Gores Holding V Inc.
- In 2021, Ball Corporation planned to build a new aluminium can plant Near Pilsen, Czechia. Last year company also completed the acquisition of Tubex Aluminium Packaging Business located in Brazil.
These insights are based on a report on the Drink Cans Market by Future Market Insights.