Growing Climate Concerns to Drive the Metal Packaging Market
The Global Metal Packaging market size was valued at US$115.829 billion in 2020 and is anticipated to increase at a Compound Annual Growth Rate of 3.18% over the predictive period to reach US$150.510 billion by 2027. Metal packaging is defined as a packaging process, which is made mostly of metals like metal, aluminum, and steel. Recyclability is one of the major reasons likely to boost the global metal packaging market over the projected period. Owing to their superior recycling infrastructure, aluminum and steel packaging materials are the two most durable raw materials for packaging. Considering the high need for canned food, especially in busy metropolitan areas, the rising popularity of utilizing the product for canned food serves to increase consumption. Due to its ability to withstand high pressure and durability, the product is also frequently utilized in the fragrance industry.
Growing Environmental Concerns to Drive the Market
The Climate crisis has been at an all-time high. Climate change has had a huge impact on countries all around the world. Temperature rises, floods, water shortages, plagues, and other natural disasters have been documented in countries all over the world. Climate change, according to the World Health Organization (WHO), is the greatest danger to world health in the twenty-first century. The growing fossil-fuel industry, manufacturing industry, rapid deforestation, overconsumption, increasing waste, etc, have been reported to be the major contributor to this climate change catastrophe.
Among other reasons, the growing consumption of plastic has been considered to be a major one. The increasing usage of single-use plastics, plastic bottles, etc has had an adverse effect on the environment. According to the UN Environment Programme, we produce about 400 million tons of plastic waste every year, and if current trends continue, the worldwide primary plastic output is expected to reach 1,100 million tons by 2050. Plastic bottles act as a major contributor to plastic waste and with the intensity of their usage and production around the world; it acts as a hindrance to environmental sustainability.
The food and beverage industry has reported significant growth over the past years. The usage of cans for raw fruits and vegetables, beverages, condiments, pre-cooked food, etc. has increased the market demand for canned packaging in the food and beverage industry. Aluminum cans can be recycled an endless number of times, which makes them a better alternative than plastic bottles. Metal cans are also sturdier and can provide better strength and protection against collisions or damages during transport, while also providing a barrier to bacteria and reducing contamination. Hence, with the growing concern for climate change and eco-friendly production processes, the metal packaging market is anticipated to rise significantly.
Advancements in Metal Packaging to Drive the Market
With the increasing advancements in the food and beverage and consumer industry, the metal packaging sector has also reported significant improvements.
According to a news report by Ardagh Metal Packaging on 7th June 2022, The company is investing heavily in the expansion of its manufacturing facilities in La Ciotat, France. The new investment, which is backed by Bpifrance and Sud Attractivité, is in response to increased demand for beverage cans from a diverse range of new and existing customers in Southwestern Europe and Middle East Africa (MEA) regions, and will significantly strengthen AMP's position in those regions.
According to a news report dated 14th February 2022, Novelis, in conjunction with local energy distributor OIKEN and HES-SO Valais-Wallis, and EPFL from the Swiss innovation and research hub Energypolis Campus, developed a research and development center to promote carbon-neutral solutions for aluminum manufacture. The Net Zero Lab Valais is located within Novelis' production facility in Sierre, Switzerland. Its objective is to achieve carbon neutrality at the plant for Scope 1 and 2 by 2030.
In December 2021, Ethic Drinks released the IGP Méditerranée Nomad 83 rosé, which is an organic canned wine drink. The drink was met with a lot of popularity among the youth, mostly due to its sustainable packaging and carry-anywhere ability. This product goes in line with the company’s objective to prevent wastage by producing eco-friendly and recyclable packages, which would lead to a lesser carbon footprint on the environment.
North American Region to Lead the Market
The North American region is expected to hold the largest market share in the metal packaging market throughout the forecast period. The market is predicted to grow as a result of factors such as its rising adoption in the food and beverage industry, and the demand for sustainable and recyclable packaging materials. The growing market for canned soft drinks, beer, and other beverages owing to the aggressive marketing strategies of beverage companies has led to an increase in demand for the metal packaging market. The growing concerns over plastic waste have also resulted in a shift of consumers from plastic bottles to canned products. Moreover, the growing demand for metal packaging for the manufacture of pharmaceutical equipment has also contributed to an increase in demand for the metal packaging market, and this demand is anticipated to rise significantly in the region over the forecasted period.
The advent of the COVID-19 pandemic sparked a worldwide economic downturn. Most businesses had suffered major losses since most countries implemented lockdown and social isolation policies. This, in turn, had an effect on people's lifestyles and well-being. The metal packaging industry also reported a significant decrease in profits and demand, due to the closure of major industries. The market was faced with a lack of raw materials and a shortage of labor, which affected the industry. Most major supply and production lines were also disrupted as a result, leading to a decrease in imports and exports. The food and beverage industry also reported a drop in demand, due to the strict COVID-19 protocols. Some countries however reported an increase in demand for canned food items, due to their hygienic packaging. Moreover, the increasing e-commerce and delivery services have reported an increase in demand for the packaging industry, leading to positive market growth. Further, as most countries have started to lift their COVID-19 protocols, the market is anticipated to rise significantly.
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