Drink Cans Market By Content (Alcoholic Beverages, Non-Alcoholic Beverages), Capacity (Up to 200 ml, 201 - 450 ml, 451 - 700 ml, 701 - 1000 ml, More than 1000 ml) & Region – Forecast 2021 - 2031

How Will Drink Cans Market Fare in 2021-2031 in Comparison to 2015-2020?

Demand for innovative packaging solutions in the food and beverage services sector has navigated rapid developments in the global drink cans market. Sales of drink cans are predicted to rise at 8.5% CAGR between 2021 and 2031, in comparison to the 5.3% CAGR registered during 2015 to 2020.

Product customization sets drink cans apart from others packaging formats and provides exact specifications as per client requirements. Beverage brands have different requirements and specifications related to product type, design, and holding capacity.

Product-specific designs for drink cans are gaining traction in the beverage industry. Also, a large variety is available depending on the material used, capacity, design and the shape of custom metal cans. High-value alcoholic products such as wine and spirits have different set of customization, in accordance to the manufacturer’s requirement. Opting for custom drink cans helps end users to provide consumers with a unique product.

The aforementioned factors are indicative of lucrative growth prospects in the global drink cans market over the assessment period.

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How is Rising Preference for Sustainable Packaging Solutions Influencing Drink Cans Sales?

In the latest report drafted and released by Aluminum Association, CMI, and ISRI, aluminum cans are identified as the most recycled and highest value beverage containers in the market today. Growing preference for environment-friendly packaging solutions across the globe is fueling growth of the global drink cans market. 

Volatility in raw material prices and other input costs have led to an increase in prices of drink cans. Lack of import is restricting the supply of basic raw materials. When combined with late deliveries, this factor is further propelling raw material prices, resulting in limited profitability of drink cans manufacturers.

Industrial manufacturers are also compelled to minimize product costs while improving overall product quality. Slowdown in European and North American economic activities is the main reason behind the decline in demand for drink cans. Labor disputes and job cuts are increasing due to the slowdown, leading to a tough situation for the entire drink cans market. Moreover, there have been fluctuations in prices of basic metal, further hampering growth of the global drink cans market.

Metal products are produced at a massive scale across the globe. It is estimated that approximately 55% of all metal products are converted into metal waste in a short span of time. Improper metal waste management causes land fill problems and soil pollution. Numerous organizations and governments have taken initiatives and introduced strict rules and regulations for metal waste management.

Since drink cans are 100% recyclable, they present a lucrative opportunity to bolster market profitability. As they create nearly zero carbon footprint during recycling process, they are beneficial to the environment. Moreover, they can be recycled all over again in the same process, reducing the dependency on raw material. This opportunity will augment demand for drink cans over the forecast period.

What is the Impact of the COVID-19 Crisis on Drink Cans Market?

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.

Drink Cans Market - Country-wise Insights

Why is the U.S. Considered a Lucrative Drink Cans Market?

North America is forecast to be the fourth largest market for drink cans, according to FMI. The U.S. is estimated to hold almost 72.5% of share in the North America drink cans market in 2031.

According to Section 416 of Food and Drug Administration (FDA), food delivery service providers have to  ensure that food & beverage products are not delivered under any condition that may damage the product’s internal contents. These safety regulations are set to boost demand for durable and safe food and beverage packaging solutions like drink cans in the U.S.

Moreover, the U.S. is one of the largest markets for consumption of drink cans. Drink cans are the most favored choice for exporting non-alcoholic and alcoholic products across the globe, which in turn is expected to continue pushing sales of drink cans through 2031.

Why is China Considered an Attractive Drink Cans Market?

China is expected to hold over 42% of the drink cans market share in the East Asia region. According to the State Food and Drug Administration, China, there is a 4.7% increase in beverage consumption in China during 2020-2021.

China is well known for its delicacies and indigenous manufactured beverages. The price of making products is very less in the country because of cheap labor and a large consumer pool. China also remains one of Asia’s biggest markets for food, beverages, chemicals, electronics & electrical personal care industry, making it highly lucrative for drink cans manufacturers.

Moreover, increasing demand for sustainable packaging solutions, along with increasing consumption of non-alcoholic and alcoholic beverages is expected to augment growth of the market.

How will Expansion of Food & Beverage Industry Fuel Demand for Drink Cans in India?

India is forecast to account for more than 31% of the South Asia drink cans market share by the end 2031. The expansion and penetration of the food & beverage services are expected to offer tremendous opportunities for drink cans manufacturers to increase their sales in India.

In reports published by the India Brand Equity Foundation (IBEF), FMCG market in India is expected to expand by 200% i.e., by almost US$ 70 Bn in 2025. This is expected to augment growth of non-alcoholic beverages segment of drink cans market in the country. In addition to this, recent policy changes drafted by the  Government of India allows a 51% FDI investment in multi-brand retail, creating lucrative prospects for new entrants in the drink cans market.  

Due to large-scale production, India has emerged as a major exporter of packaged food. Total food and beverage commodities exported were worth US$ 17.19 Bn in between March 2020 and February 2021.

Increasing production of food & beverage products in India is resulting in high demand for packaging solutions for alcoholic and no- alcoholic beverages. Driven by this, sales of drink cans in India are expected to rise at a steady pace over the forecast period.

Drink Cans Market - Category-wise Insights

Why are 2 – Piece Cans Most Preferred in the Drink Cans market?

2 – Piece drink cans are widely adopted by beverage manufacturers due to their high recyclability. This segment is accounted for nearly 66% of the total drink cans market share in 2020.

The U.S. Food and Drug Administration and various European health organizations have started to implement rules for drink cans production to ensure that contents stored in cans are not damaged during transit. If drink cans are exposed to sunlight for a longer duration of, it will lead to adverse effects such as spilling and product contamination. In cases of alcoholic beverages, chemicals might react due to sunlight, making contents unfit for consumption.

Which is the Leading End-Use Industry in the Drink Cans Market?

The non-alcoholic beverage segment accounted for a dominant share of 63% of the total drink cans market share in 2020. Increasing demand for canned juice, energy drinks, and carbonated drinks in North America and Europe will continue pushing sales of drink cans over the forecast period.  

In South Asia, expansion of the food and beverage sector, along with increasing spending on consumption of carbonated drinks, tea & coffee and non-alcoholic beverages is expected to propel sales of drink cans for non-alcoholic beverages by 2.2x through 2031.

Drink Cans Market - Competitive Landscape

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 aluminum can plant Near Pilsen, Czechia. Last year company also completed the acquisition of Tubex Aluminum Packaging Business located in Brazil.

Scope of Report

Key Questions Answered in the Report

• What is the current valuation of the global drink cans market?

  The drink cans market is expected to surpass a valuation of US$ 50.6 Bn in 2021.

• At what rate did the drink cans market expand in the last 6 years?

  The drink cans market exhibited a steady CAGR of 5.3% between 2015 and 2020.

• What are the key trends driving sales of drink cans?

  Customized solutions offered by drink can manufacturers, along with the adoption of 3D printing technology for manufacturing drink cans are identified as key trends driving sales of drink cans.

• What is the North America drink cans market outlook?

  North America will remain the fourth-leading market for drink cans, accounting for nearly 19% of sales globally.

• What is the cumulative share of top five companies in drink cans market?

  Top five companies operating in the drink cans market are Ab-InBev, Novelis Inc., Ball Corp., Crown Holdings Inc., Toyo Seikan Group Holdings Ltd. These companies accounted for  nearly 20% to 25% of the overall market in 2020.

• At what rate will drink cans market grow in Europe?

  The Europe drink cans market is expected to grow at a 7.2% CAGR between 2021 and 2031 and will offer an incremental opportunity of US$ 11.0 Bn.  

• Which are the Top 5 Countries Exhibiting High Demand for Drink Cans?

  The U.S., China, India, Japan and South Korea are among the leading markets for drink cans, exhibiting consistently high demand.

• At what Rate Will Japan Drink Cans Market Grow?

  As per FMI, the Japan drink cans market is expected to grow at a 9.6 % CAGR between 2021 and 2031.

Drink Cans Market by Category

By Capacity:

• Up to 200 ml
• 201 - 450 ml
• 451 - 700 ml
• 701 - 1000 ml
• More than 1000 ml

By Product Type:

• 1 – Piece Cans
• 2 – Piece Cans
• 3 – Piece Cans

By Content:

• Alcoholic Beverages
  • Beer
  • Wine
  • Spirits
  • Others Alcoholic Beverages (Cider, etc.)
• Non-Alcoholic Beverages
  • Carbonated Drinks
  • Tea & Coffee
  • Juices
  • Soft drinks
  • Dairy Drinks
  • Soda
  • Other Beverages (Energy & Sports drinks, Electrolytes, etc.)

By Region:

• North America
• Latin America
• Europe
• MEA
• East Asia
• South Asia
• Oceania