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The aluminum market for packaging industry share is expected to increase by 2376.08 thousand tons from 2020 to 2025, and the market's growth momentum will accelerate at a CAGR of 4.19%. This aluminum market for packaging industry research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. The aluminum market for packaging industry report also offers information on several market vendors, including Alcoa Corp., Amcor Plc, Ardagh Group SA, Ball Corp., Constellium SE, Crown Holdings Inc., Ess Dee Aluminium Ltd., Hindalco Industries Ltd., Norsk Hydro ASA, and United Company Rusal IPJSC among others. Furthermore, this report extensively covers aluminum market for packaging industry segmentation by type (foils, sheets, and others), application (consumer packaging and pharmaceutical packaging), and geography (APAC, Europe, North America, South America, MEA, APAC, Europe, North America, South America, and MEA).
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Based on our research output, there has been a positive impact on the market growth during and post COVID-19 era. The growing need for sustainable packaging is notably driving the aluminum market for packaging industry growth, although factors such as volatility in raw material prices may impede market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the aluminum market for packaging industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Aluminum Market For Packaging Industry Driver
The growing need for sustainable packaging is notably driving the aluminum market growth for the packaging industry. Packaging helps in protecting its contents from environmental influences. Also, it helps in protecting the environment from potentially dangerous products that are present in it. Out of all the raw materials used for packaging, aluminum has one of the most robust recycling infrastructures compared with other packaging materials. They are 100% recyclable and can be recycled many times within a short time, without any loss in the quality of the material. Also, aluminum cans are lightweight, unbreakable, and provide superior product protection.Aluminum cans can be easily separated from substrates in a waste stream. Aluminum can be separated by using eddy current technology. Hence, it is easy for vendors to separate these metals from waste and reuse them for packaging. Due to the presence of effective metal-segregation methods, most metals used for packaging are recycled across the globe. For instance, 65%-75% of all aluminum cans are recycled globally, thus making metal packaging the world s most sustainable packaging product.The unique sustainability feature of metal packaging is one of its biggest advantages compared with other packaging materials. This, in turn, drives the growth of the global aluminum market for the packaging industry.
Key Aluminum Market For Packaging Industry Trend
Increasing adoption of lightweight packaging is another factor driving the aluminum market growth for the packaging industry. Lightweight packaging is achieved through the reduction of the number of raw materials used while manufacturing the product. Lighter packaging lowers transportation costs and supports improved sustainability and company profitability targets. Vendors and manufacturers are investing in R&D to innovate lightweight aluminum foil packaging to enhance the end-user segment usability and reduce wastage. This kind of packaging is cost-effective and recyclable. Because glass is heavy, it is cumbersome to transport, which scales up the cost of bottling and production. Below are some of the recent introduction of lightweight weight aluminum packaging:In January 2020, aluminum packaging solution provider Ball Corp. announced that it was set to launch a new recyclable extruded aluminum bottle line, which would be lightweight and could be conveniently recycled.In January 2020, Ball Corp. released a new range of 360 aerosol cans that can protect the product while in transit yet being lightweight
Key Aluminum Market For Packaging Industry Challenge
Volatility in raw material prices is a major hindrance to the aluminum market growth for the packaging industry. The cost of raw materials is one of the major factors determining the end-product price. Hence, any fluctuation in raw material prices affects the vendors operating in the global aluminum market for the packaging industry. The widening of the gap between demand and supply in the last few years has led to a considerable increase in the price of raw materials. Factors affecting the price of raw materials are mentioned below:Changing economic conditionsCurrency fluctuationsCommodity price fluctuationsTransportation costsResource availabilityPolitical instabilityThe buyers of aluminum, which include end-user segments such as food and beverage, cosmetics, and pharmaceuticals, are required to pay high premium charges for the aluminum they purchase from the manufacturer. The premium is a surcharge, which aluminum consumers must pay on top of the prevailing prices to take the delivery of metal from the warehouses. A large part of these premiums is due to the rent that warehouses charge for storing aluminum. Large financial companies like Morgan Stanley, Goldman Sachs, and JPMorgan Chase own these warehouses. The premium may help the manufacturing companies, but the consumers face a disadvantage as they pay a surcharge of up to 20%, which may increase or decrease when the price of aluminum fluctuates. The fluctuations in raw material prices are expected to pose a challenge to the global metal packaging market during the forecast period.
This aluminum market for packaging industry analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2021-2025.
Technavio categorizes aluminum market for packaging industry as a part of global metal and glass containers market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the aluminum market for packaging industry during the forecast period.
The report analyzes the market's competitive landscape and offers information on several market vendors, including:
This statistical study of the aluminum market for packaging industry encompasses successful business strategies deployed by the key vendors. The aluminum market for packaging industry is fragmented and the vendors are deploying growth strategies such as organic and inorganic strategies to compete in the market.
To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
The aluminum market for packaging industry forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
Our report provides extensive information on the value chain analysis for the aluminum market for packaging industry, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
The value chain of global metal and glass containers market includes the following core components:
The report has further elucidated on other innovative approaches being followed by manufacturers to ensure a sustainable market presence.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Five Forces Analysis
5 Market Segmentation by Application
6 Market Segmentation by Type
7 Customer landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Vendor Landscape
11 Vendor Analysis
12 Appendix
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