Metal Cans Market

Metal Cans Market: Alcoholic Beverages to be the Leading Application Area: Global Industry Analysis (2012 - 2016) & Opportunity Assessment (2017 - 2026)

2018-02-19
REP-GB-6372
170 pages
Packaging

Key Insights- Metal Cans Market

Focus of Manufacturers Shifting from BPA Linings to Acrylic & Polyester for Metal Cans to Ensure Safety

Metal can manufacturers are continuously seeking alternatives to bisphenol-A (BPA) linings, to eliminate health hazards associated with the chemical. BPA linings are now being replaced with new linings produced using polyester and acrylic. According to the Can Manufacturers Institute, 90% of food cans have replaced linings and percentage continue to increase with committed research and testing to find new alternatives. Both acrylic and polyester are tested and cleared by regulatory agencies.

Moreover, these linings protect food from bacteria and maintain flavor, freshness, and food quality. Continuous efforts of manufacturers in the development of next-generation linings are also helping them meet sustainability goals, significantly reducing food waste that forms the largest component of landfill streams.

Manufacturers’ Preference to Incline toward Aluminum Beverage Cans as a More Eco-Friendly Option

Aluminum cans are witnessing increased penetration into the metal cans market, upheld by their higher recyclable rate. Relative sustainability of aluminum as a base material has further led metal can manufacturers toward using the material, thereby meeting consumer demand for green products and packaging. Manufacturers are using recycled material to produce new aluminium cans as it leads to 95% less greenhouse gas emission and also uses 95% less energy, according to Can Manufacturers Institute.

As per the report by Packaging Machinery Manufacturers Institute (PMMI), more than 6,000 microbreweries in the US are moving to aluminium cans. Moreover, packaging waste recovery data released by Environmental Agency revealed that aluminium cans had hit 72% recycling rate in 2017 in Europe.

Advent and Gradual Rise in Adoption of Bio-Based Plastic to Hinder Demand for Metal Cans

Increased use of bio-based plastic in food & beverage packaging has emerged as a key challenge for metal can manufacturers. Key beverage producing companies such as Coca-Cola and PepsiCo have entered into partnership with bio-based chemical manufacturers for the development and use of bio-based plastic as a relatively cost-efficient and sustainable packaging alternative.

Additionally, packaging industry is witnessing a gradual shift from use of polymer-based packaging materials to polyethylene terephthalate (PET) blended with bio-based plastic. The European Bioplastics Association in its latest study indicated the global bioplastics production to reach approximately 6.1 tonnes by 2021. Growing adoption of bio-based plastic in the packaging industry, particularly for food & beverage, points at confined future prospects for metal cans.

Manufacturers Put Greater Emphasis on Modified Metal Can Designs to Improve Quality and Gain Consumer Attention

Adoption of innovative techniques for printing labels and images on metal cans is currently a key focus are of metal cans manufacturers, to gain consumer attention and boost their product sales. New metal cans designs can result in higher engagement and offer product-containing advertisement to the consumer. Metal cans manufacturers are using unique and special finish with the help of thermochromic ink, photochromic ink, noon inks, and matte OV for designing purpose.

Temperature sensitive finishing materials such as thermochromic ink let consumers know when beverage has reached the perfect temperature for consumption, while photochromic ink changes color when exposed to light. Additionally, digital printing on metal cans is also gaining traction as it offers eye-catching colors and striking visuals.

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Metal Cans Continue to Witness Robust Demand in the Food Industry

Organised retail industry has witnessed a significant growth in the recent past, which in turn has driven the demand for various packaging options in the food industry, and metal cans are no exception. Proliferation of canned food and beverages in organised retail stores is backed by prolonged shelf life and preservation of nutritional value of food products linked with the canned packaging.

In addition, increasing dependence of vendors on organised retailers for their product sales and market penetration continues to underpin demand for metal cans in organised retail stores. Wider range of options to choose from has led consumer preference to shop from modern trade channels, which in turn will continue to create demand for metal cans in the near future.

Competitive Landscape

Occupancy of few established players, who collectively hold majority share of the metal cans market, has made nature of the market to be highly consolidated. Mergers & acquisitions continues to remain a key expansion strategy among established as well as new market players alike.

In March 2018 Berlin Packaging acquired H. Erben Ltd., the England-based supplier of packaging and packaging equipment. With Erben acquisition, the combined company will have a stronghold in Europe. The acquisition is also likely to benefit customers and suppliers of Berlin and Erben.

Rexam PLC was acquired by Ball Corporation in 2016 for approximately $6.1 billion. The acquisition resulted in making Ball Corporation the largest manufacturer of beverage cans globally.