By TradeIndia Team in Business Ideas — 13 Nov 2022

The Rise of Metal Cans in Packaging Industry ( Food & Beverages)

Due to global environmental consciousness as well as economic, social, and environmental concerns, metal packaging is becoming more and more popular and in demand. The f&b business is the key industry generating demand.

Cans Are Still Popular

Can has traditionally been the most widely used kind of metal container, followed by bottles, drums, caps, and closures. The next years are expected to see a continuation of this trend. By 2026, the can market will have grown by 4.8 per cent and will be valued at US$101, 993 million. The demand for two-piece cans is anticipated to increase the most, followed by three-piece cans. Cans are often made of aluminium, tin, or steel and account for one-third of all metal containers. The material that will likely be utilised to create cans on a large scale in the future is aluminium which is used by most packaging can suppliers.

New Markets Segments

Although cans are crucial, the expansion of non-traditional market sectors has given the aluminium packaging business a boost. In the wine markets, aluminium screw caps are becoming more and more common. They are currently the most popular wine closing and are used on 30% of wine containers. The major wine markets in the world, Europe and the United States are particularly pronounced in this tendency. Young people favour aluminium screw caps since they are simple to open and shut, which is driving the increasing trend.

Various Uses

Cans are often used for food, drinks, paint, cosmetics, and other products. There are regional variations according to can dealers, even though the food and beverage industry accounts for the majority of global demand. Beverages and processed foods are the principal uses of cans in North and Latin America, Europe, and Japan. Cans are used to package oil throughout the Asia Pacific, with the exception of Japan (APEJ), while in the Middle East, they are used to package non-food items including cosmetics, drugs, and industrial goods.

Global Foodservice Sector Expansion

Metal cans are finding new uses thanks to the rising worldwide demand for prepared foods and beverages, particularly alcoholic and non-alcoholic beverages.

Global Emerging Markets

The biggest market for metallic packaging has always been and currently is the United States. The growth in demand for packaged food and beverages is, however, being driven by an increase in disposable affluence and urbanisation in many emerging nations throughout the globe, particularly in the Asia-Pacific area. The desire for packaged food is increasing the usage of metal packaging in China, India, and Brazil. China is predicted to have the biggest market for metal packaged food and consequently cans by 2022.

Also, read: List of Aluminium Food Container Manufacturers in India - Top 7 Companies

Focus on Europe

Europe is renowned for producing food that is safe, and it is a significant exporter of foods and delicacies that are well-liked in other nations. In the last 10 years, food exports from Europe have increased by double. The joint EU market and rules also facilitate simple cross-border trade, guaranteeing a smooth food supply chain and enhanced market accessibility. By 2022, it is anticipated that the penetration of the food, beverage, and alcoholic drinks sector in Europe as a whole would increase from 12 per cent to 16 per cent. Even if fresh food is included in these statistics, there is still room for metal packaging, particularly for drinks. The foodservice industry is anticipated to generate US$ 38,699 million by 2022, an 8.7% growth over 2018. The need for metal packaging will be fueled by all these growths in the foodservice industry since the EU is pushing aluminium manufacturing to create a circular market.

When opposed to plastics, whose disposal presents huge worldwide issues, aluminium cans are seen to be more ecologically benign, with a recycling rate in Europe of around 70%. Additionally, owing to their possible effects on human health, chemical transmission from plastic water and food bottles, as well as inner plastic layers, can have raised significant concerns. Creating a company that advocates for sustainability help businesses stand out from the competition. These businesses are abandoning plastic in favour of new metal cans with healthier interior coatings. For instance, since metal cans are safer and more ecologically friendly, businesses that sell water in Nordic nations prefer to use them.

A Profound Cycle

Every sector of the economy, including customers, product manufacturers, and the packaging business, is seeing an increase in the use of packaging made of aluminium, tin, and steel. The amount of money spent on advancements in this industry is rising together with the need for healthy metal packaging. In turn, this may result in packaging material that not only fulfils customer preferences and demands but is also ecologically sustainable.

List of Best Can Manufacturers in The World

Amcor:

As a market leader in packaging solutions, this firm offers a wide variety of rigid and flexible packaging goods to the personal care, home, healthcare, beverage, and food packaging sectors. In 35 countries, the business has 128 flexible packaging facilities. Its flexible packaging division recorded total sales of 4,996 billion euros in 2015. Composite Can, a distinctive product of Amcor, is used in a broad variety of product categories and has a high aluminium content. Amcor takes engaged in a variety of recycling initiatives. It participates actively in trade associations including the Sustainable Packaging Coalition, the European Association for Packing and the Nature, and the Aluminum Stewardship Initiative. The business is now on a purchasing binge.

Silgan Containers LLC

This business is the biggest can manufacturer in America. The Carnation Company started producing its evaporated milk cans in 1899, which is when it first gained experience in can manufacturing. Currently, the firm controls around 50% of the market in the United States. The majority of Silgan's goods are produced in the United States and Europe. The corporation is under increasing price pressure as a result of the rivalry from foreign-based businesses that hire cheaper labour from developing economies. As a result of these constraints, Silgan has started purchasing smaller rivals to enhance its share of the market, invest in infrastructure technologies to boost production and manufacturing effectiveness, and possibly most crucially, better manage its raw material costs via upcoming contracts. A wide variety of aluminium cans are produced by the American packaging manufacturer Crown Holdings in Philadelphia to accommodate different beverage applications, food packaging, and distribution methods. Crown is perfectly positioned to provide the greatest manufacturing and quality techniques to developing economies all across the world.

Hindustan Tin Works Ltd.

This company is the best can manufacturer in India. One of the industry's top producers and dealers of printed sheets, high-performance cans, and associated components to marketing communications firms in India and overseas is this business. They have been able to consistently satisfy the demands of their popular clients, including Danone India, Reckitt Benckiser, Patanjali, Haldiram, Nestle India Ltd, Del Monte, DS Group, Bikanerwala, Amul, Asian Paints, and many more, thanks to their strong infrastructure, unwavering commitment to keeping customers happy, and stringent quality initiatives that are clearly outlined, tightly regulated, and firmly implemented.

Also, read: Top Leading Plastic Container Manufacturers & Suppliers in India

Ball Corporation

The firm has grown to be the biggest metal can supplier in the world after purchasing Rexam Plc in a US$6.1 billion cash-equity transaction in June 2019. In North America, Europe, and Brazil, the merged corporation currently supplies 60, 69, and 74 per cent of all beverage cans, respectively. Ball Corp., which now has a market worth of $10.3 billion, is focusing on post-acquisition integration across the combined company's verticals. Ball reduced the carbon emissions of the drink cans by 10% from the base objective set in 2010 in order to meet the new benchmark for 2015 emissions. It has now established a 2020 target of a decrease in carbon emissions of 25%. Ball recently became a key player in NASA's GPIM), which will provide environmentally friendly alternatives to traditional chemical propulsion technology for aircraft and spacecraft, cutting emissions by around 75%.

Conclusion

The most recyclable items worldwide are metal cans, particularly aluminium cans in use for a drink and aerosol packaging. Because they can be reused at the conclusion of their lifespan without losing quality, companies across sectors prefer using them as packaging over alternatives like paper and plastic. In the United States and Europe, there has always been a pronounced increase in the usage of aluminium cans. The number of middle-income groups is expanding, lifestyles are changing, and consumer tastes are changing, all of which are contributing to a steady increase in consumption in Asian and Southeast Asian nations. The market for metal cans is anticipated to grow to USD 52.83 billion by 2023, according to a recent analysis. The state of the metal sector and the best can manufacturers in India are driving the worldwide expansion of aluminium packaging as given above.

FAQs: Metal Cans

Q. What justifies using cans as packaging?

Ans. Because conventional metals react with acidic goods and cause the substance to corrode, packagers choose tin cans over normal metals. When this occurs, the corroded materials have the potential to damage the can and contaminate the packed food.

Q. Could packaging be made of metal?

Ans. The answer is that metal-based packaging solutions have great barrier qualities and are thus often employed in food packing solutions. They are used as closures for various package types, including composite cans and glass bottles.

Q. What benefits do metal cans offer?

Ans. The durability of metal cans is one advantage. Metal's strength and rigidity make it feasible to fill cans more quickly without sacrificing the quality of the product. Durability in metal also allows for maximum storage and transit capacity. Cans can be piled one on top of the other without breaking.

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