The desire for more recyclable packaging and new demand in emergent markets will help drive future demand for beverage cans and other metal packaging through to 2027, according to the latest exclusive market study from Smithers.
According to The Future of Metal Packaging and Coatings to 2027 report, metal packaging has seen distinct gains since 2019 as a result of the global pandemic – with an extra $19.7 billion added to global sales across 2020-21 – due to a strong uptake of food cans, and the continued growth of beverage cans.
Smithers said that this has more than compensated for losses in non-consumer formats – industrial bulk containers, industrial drums and barrels – which were impacted by reductions in shipping volumes, as demand for oil and other commodities collapsed temporarily.
Worth a projected $127.3 billion in 2022, the report forecasts a future global CAGR of 2.9 per cent, pushing total value to $147.1 billion in 2027, and will continue to be led by the beverage cans segment, which accounted for nearly 80 per cent of growth (equivalent to an extra 383 billion cans sold) in 2021.
“To capitalise on this, several major can converters have announced new plants or increased the capacity of existing production lines,” the report stated.
“The rise in demand for food cans was also pronounced especially at the beginning of the pandemic, enabling consumers to shop less frequently, reducing their risk of contracting Covid.
“There was also a dramatic increase in online sales, where ambient products could be shipped from the producer or distributor direct to home without refrigeration.”
Growth in all segments will not be trouble-free, however, according to Smithers, as some supply chain disruption is expected.
The report said more significantly through H2 2021, converters have been confronted by rises in the costs for raw materials, energy and transport – all factors that will continue to dominate industry thinking through H1 2022.
“Metal packs already have a well-established recycling industry – ESG performance is increasingly important in the FMCG segment post-Covid, and metal packs are increasingly being trialled as greener replacements for rigid plastic packs,” the report said.
“This includes both beverages and some food applications, as well as innovative premium designs for use in personal care, and the emergence of refill packaging formats.
“Capitalising on this will support the parallel development of new technologies, including the integration of Industry 4.0 concepts to boost efficiency and order turnaround; superior decoration technology (including direct-to-can print and embellishment) for luxury goods; integration of can manufacturing and filling in a single plant; and developing alternatives to BPA in coating applications.
“Within the industry, further circular economy gains will be achieved by further light-weighting of can constructions, and the introduction of new fixtures and aerosol designs.”
The Future of Metal Packaging and Coatings to 2027 report is available to purchase now from the Smithers website.
It includes an exclusive market data set (by value and volume) segmenting the market by:
- Eight metal packaging formats (food cans, beverage cans, aerosols, other cans, caps and closures, fabricated steel boxes, shipping barrels and drums, bulk metal containers, and other aluminium containers); and
- Twenty-seven regional and leading national markets.
This is contextualised with critical insight into current and emergent technology trends, supply chain management challenges, the lingering impact of Covid-19 on consumers, and regulatory developments.
