Composite Paper Cans Market

2021 Analysis and Review: Composite Paper Cans Market by Closure Type – Caps and Lids for 2021-2031

Key Highlights from Report

  • Which is the Most Lucrative Market for Composite Paper Cans?

    Germany has emerged as a leading market for composite paper cans within Europe. The Germany market is expected to be valued US$ 257.6 Mn in 2021. Within North America, the U.S. will account for maximum sales of composite paper cans.

  • Which is the Top-Selling Composite Paper Cans by Diameter?

    In terms of consumption, 50mm-100mm diameter composite paper cans are expected to outpace other segments and are estimated to reach nearly 58 Bn Units sold by 2031.

  • Who is the Leading End User of Composite Paper Cans?

    Adoption of sustainable materials in the production of composite paper cans attract the environment conscious customers. Food and beverage packaging applications will account for more than 55% of the market in 2021. Composite material provides increased durability as compared to the ordinary paper cans.

  • Which are Some of the Leading Companies Producing Composite Paper Cans?

    Some of the leading companies manufacturing composite paper cans are, Smurfit Kappa Group plc, Amcor plc, Mondi Group plc, Sonoco products company, Ace paper tube, Irwin packaging, PTS manufacturing, Canfab packaging, and among others. European manufacturers account for more than 38% of the market.

Key Points Covered in Composite Paper Cans Market Study

  • Market estimates and forecast 2016-2031
  • Key drivers and restraints impacting market growth
  • Segment-wise, Country-wise, and Region-wise Analysis
  • Competition Mapping and Benchmarking
  • Brand share and Market Share Analysis
  • Key Product Innovations and Regulatory Climate
  • COVID-19 Impact on Composite Paper Cans and How to Navigate
  • Recommendation on Key Winning Strategies

2016-2020 Composite Paper Cans Market Outlook Compared to 2021-2031 Forecast

The global market of composite paper cans market is expected to rise at a CAGR of 4.8% during 2021-2031 in comparison to 3% CAGR registered during 2016 – 2020. This can be attributed to sustainability investments and increasing consumption of eco-friendly packaging solutions among end users. 

Investments by leading manufacturers in research and development activities have fueled the growth of the composite paper cans market in recent years. Also, the inclination towards bio-degradable materials has aided in the growth of the composite paper cans market. Composite paper cans have emerged as a cheap and safer alternative to plastic or metal cans.

Manufacturers are primarily focusing on the environmental protection and waste management. This is encouraging them to start adopting green practices which will support long-term profits.

According to United States Environmental Protection Agency, combustion of containers and packaging was estimated at 7.4 million tons, while 30.5 million tons were dumped in landfills in 2018.

To avoid such circumstances, paper and paperboard packaging have been given more importance since they result in lower carbon impact. Considering these factors, composite paper cans are expected to gain more traction.

How is E-Commerce Facilitating the Growth of Composite Paper Cans Amid Pandemic?

According to FMI analysis, some of the leading companies are revising their supply chain strategies to cater to the evolving demand of online buyers. Usually, takeaway beverages, and frozen items are at a higher risk of getting damaged during transport. Consequently, it is very important to select the right type of packaging for food items.

Composite paper cans make use of internal laminated coatings to maintain shelf life of products. Also, growing focus on aluminium membranes helps to ensure minimal contact with the product. Beverages are closed using snap on or plug caps to prevent spillage. This makes composite paper cans an ideal solution for on-the-go snacking and takeaways. These properties reduce consumer inconvenience arising from product damage.

How is the Availability of Different Capacities of Composite Paper Cans Driving Demand?

Composite paper materials are used in various applications in food and beverage packaging industry, retail packaging industry, and in aerospace products. Composite paper provides superior durability and high tensile strength as compared to conventional paper cans. The strength of the composite paper cans can be attributed to recycled paper fibers. The right mix of raw materials constituents results in corrosion resistant packaging.

The possibilities of the shape and size of composite paper cans are significant. The capacities of the cans range from 50mm to above 100mm, depending on the consumer’s need and request and the end use of the can.

What is the Impact of COVID-19 on the Composite Paper Cans Market?

During the pandemic, the composite paper cans market reported decelerating sales. According to FMI, the global composite paper cans market is estimated to showcase a Y-o-Y growth of -1.6% and -0.1% in 2020 and 2021 respectively.

The outbreak of the novel coronavirus has impacted the global packaging industry. Stringent government regulations implemented particularly during lockdown has resulted in a slump in operations across various industries. The disruption of supply chain affected the production.

However, rising sales via e-commerce and online orders have started to gradually restore growth of the packaging industry. The online orders of food and beverages has helped sustain the demand for composite paper cans.

With regulations being relaxed in recent months, manufacturers have restarted their operations potentially aiding recovery through 2021. Moreover, demand is also on the rise owing to takeaway orders. Sustainability and hygiene practices, support a transition from plastic to composite paper cans.

Country-wise Insights

How Big Is the Opportunity in Germany?

According to FMI research, Europe contributed to over a third of the global demand for composite paper cans in the year 2020. Germany is estimated to account for a share of 15% of the Europe market by the end of 2031.

One of the key aspects supporting growth in the country is that major players have a strong presence in the Europe market leading to cost-effective domestic sales in the region. Presence of some of the leading market players and easy availability of raw materials in the country are supporting growth in the market.

Why are New Entrants Gravitating to the China Market?

According to FMI, the China market is growing steadily with numerous small-scale companies manufacturing composite paper cans. China accounts for a market share of 58.2% in East Asia.

The country is expected to register increasing demand for composite paper cans on the back of rising sales in the food and beverages industry. Also industrialization, supported by easy availability of raw materials and access to cheap labor will support growth in the China market.

Why is the U.S. Leading Market for Composite Paper Cans?

The composite paper cans sales registered in the U.S. accounts for 66.3% of the North America market and is expected to witness a moderate growth through the forecast period. Large multinational vendors are adapting to composite paper cans owing to the presence of paper board manufacturers in the country.

The surging demand of takeaway food, frozen food items, and on-the-go beverages have been enabling growth in the country. Rising application in the packaging of personal care and cosmetic products will also aid sales in the U.S.

How are Sustainability Efforts Shaping Growth in the India Market?

According to FMI, Indian consumers have become increasingly dependent on ordering food online while also becoming more concerned about the environment. This is leading to higher adoption of bio-degradable packaging. Consequently, India has emerged largest and fastest growing market in South Asia and is forecast to exhibit a CAGR of 8.6% over the forecast period.

Expansion of food sector following the entry of fast food retail chain will drive growth in India. Besides this, focus on curbing carbon footprint will continue driving sales in the country.

How are Composite Paper Cans Faring in the Australia Market?

According to the FMI study, the composite paper cans market in the Australia will account for 58.4% of the demand in Oceania in the year 2021 and is expected to witness a moderate growth throughout the forecast period.

Amcor plc, a leading Australian player conducts 95% of the company’s business out of its domestic market. Presence of leading players will drive growth in the country. Australia also has a conducive environment for new entrants and is likely to offer lucrative opportunities in the long-term.

Category-wise Insights

Which Closure Type is Preferred More for Composite Paper Cans?

Caps and lids are two of the most common types of closures used for composite paper cans. Caps are expected to account for 70.2% in the year 2021. The segment is anticipated to grow at 4.7% CAGR in the forecast period. Caps are in demand owing to re-use characteristics without compromising on product safety.

Lids are preferred for food items such as snacks, dry foods, and frozen food, owing to reduced risk of spillage.

Who is the Leading End User of Composite Paper Cans?

The food and beverage industry will account for 54.9% of the global market, followed by agriculture and retail industry. Global fast-food giants are the leading users of composite paper cans. These packaging solutions are especially used for takeaways and deliveries in the food sector.

Composite paper cans have emerged as preferred alternative to the plastic cans or cups. They are not only reliable but also effective in reducing wastage, with better potential for reuse applications. Retail outlets such as the supermarkets, hypermarkets and departmental stores also will exhibit demand for the storage of frozen food, dry food, and snacks.

What Type of Production Process is Preferred by Composite Paper Can Producers?

According to FMI, spiral winding is the most used production type and is estimated to account for 46.7% of the value share in 2021, owing to extensive application in the food and beverage sector.

On the other hand, convolute winding production is preferred for the storage of heavy items or products in large quantities owing to high crush resistance and bend strength.

What is the Preferred Diameter for Composite Paper Cans?

Composite paper cans with a diameter of 50 mm to 100 mm is used commonly and it will hold a market share of 48.6% in 2021. This size is ideal for frozen foods packaging in retail stores and is also used extensively in restaurants owing to ease of storage.

With the changing food habits of millennial consumers, demand in this segment is expected to increase further by 180 bps owing to easy handling and increasing consumption of takeaway and on-the-go food. On the other hand, cans with a diameter above 100 mm are estimated to witness a slight decline of 270 bps in comparison current share during the forecast period.

Competitive Landscape

Key players in the composite paper cans market are focusing on the production of sustainable solutions to keep pace with changing consumer preferences and for minimizing the usage of plastic. For instance:

  • Mondi Group Plc used 37% less plastic materials in their portfolio, saving around 35 tons of plastic in 2020. The company also has their own sustainably managed forest which is the main source of raw materials. The company leveraged their unique “EcoSolutions” for product designs to encourage recycling.
  • Amcor plc announced an investment of US$ 100Mn for the development of new packaging solutions for sustainability objectives. The company has joined various government initiatives such as Healthcare Plastics Recycling Council where sustainable products used in the healthcare segment focus on recyclability of packaging products.
  • EnvoPAP announced research and development program to develop composite cans from agro-waste instead of conventional wood sources required for paper can production, to further reduce environmental impact.

Some of the other leading companies operating in the market are:

  • Smurfit Kappa Group Plc
  • Mondi Group Plc
  • Amcor Plc
  • Sonoco Products Company
  • Ace Paper Tube Corp
  • Irwin Packaging Pty Ltd
  • Paper Tubes And Sales(PTS) Manufacturing
  • Canfab Packaging Inc.
  • Bharath Paper Conversions
  • Nagel Paper.

*The list is not exhaustive, and only for representational purposes. Full competitive intelligence with SWOT analysis available in the report.

Scope of the Report

Attribute

Details

Forecast Period

2021-2031

Historical Data Available for

2016-2020

Market Analysis

USD Million for value and Million Units for Volume

Key Regions Covered

North America, Latin America, Europe, East Asia, South Asia, Oceania, Middle East & Africa.

Key Countries Covered

US, Canada, Germany, U.K., France, Italy, China, Japan, India, Thailand, Brazil, Mexico, Australia, GCC Countries, Northern Africa.

Key Segments Covered

Closure Type, Production Type, Can Diameter, End Use, and Region

Key Companies Profiled

  • Smurfit Kappa Group Plc
  • Mondi Group Plc
  • Amcor Plc
  • Sonoco Products Company
  • Ace Paper Tube Corp
  • Irwin Packaging Pty Ltd
  • Paper Tubes And Sales(PTS) Manufacturing
  • Canfab Packaging Inc.
  • Bharath Paper Conversions
  • Nagel Paper.

Report Coverage

Market Forecast, brand share analysis, competition intelligence, DROT analysis, Market Dynamics and Challenges, Strategic Growth Initiatives

Customization & Pricing

Available upon Request

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  • Is this research conducted by Future Market Insights?

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Composite Paper Cans Market by Category

Closure Type

  • Caps
    • Snap On
    • Plug
  • Lids
    • Aluminum Membrane
    • Plastic Membrane
    • Paperboard

Production Type

  • Spiral Winding
  • Convolute Winding
  • Linear Draw

Can Diameter

  • Less than 50 mm
  • 50 mm to 100 mm
  • Above 100 mm

End Use

  • Food and beverages
    • Tea/Coffee
    • Snacks
    • Alcoholic Beverages
    • Others
  • Agriculture
  • Household
  • Personal & Cosmetics
  • Others

Region

  • North America
  • Latin America
  • Europe
  • South Asia
  • East Asia
  • Oceania
  • Middle East and Africa (MEA)

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