(Food-Beverage-News.Com, July 28, 2021 ) The market for beverage cans market is estimated at USD 23.7 billion in 2021; it is projected to grow at a CAGR of 5.6% to reach USD 31.2 billion by 2026. The rise in demand for sustainable products and awareness regarding the environment coupled with increasing demand for convenient packaging will drive the market demand and growth of beverage cans globally.
COVID-19 Impact on the global beverage cans Market
COVID-19 had a huge impact on the food supply chain in all regions, including North America, Europe, Asia-Pacific, South America, and the rest of the world. Due to the spread of COVID-19, there has been a growing number of death cases and long-term health impacts. This has resulted in the government imposing severe lockdown regulations, impacting all aspects of the economy. Governments around the world have developed policies for responding to the various impacts caused by COVID-19 for avoiding supply chain disruptions, higher raw material prices, and severe economic fallout for employees. Europe and Asia Pacific are some of the major regions that are significantly impacted by the COVID-19 scenario. This is because of the huge number of cases recorded in the regions, especially in the countries such as Spain, Italy, France, Germany in Europe and Japan, China, and South Korea in Asia Pacific.
Driver: Increase in popularity of energy and sports drinks
Energy drinks are widely promoted as products that increase energy and enhance mental alertness and physical performance. Next to multivitamins, energy drinks are the most popular dietary supplement consumed by American teens and young adults. One reason can be semantics. Many people interchange sports drinks with energy drinks, but they are markedly different, with the former being formulated specifically for enhanced performance during activity and the latter being designed to inject a burst of energy into the consumer. But semantics alone cannot explain why energy drinks are set to outsell coffee in the next decade. While coffee is still viewed as traditionally consumed by older individuals, energy drinks have a greater appeal among the younger generation, aligning themselves with their lifestyle.
Restraint: Saturated markets for cans in the developed regions
The demand for cans is directly associated with the sale of packaged products at the retail front. With the growing awareness of consumers regarding health benefits, beverage cans used for carbonated drinks such as alcohol and soft drinks are experiencing sluggish sales. Moreover, the slow growth in demand for other beverage products has hampered the growth of beverage packaging in the last five years. However, in developed regions such as North America and Europe, the consumption of canned beverages is high. The market for cans is saturated in the region and has limited scope for further growth.
Opportunity: Portable nature of cans makes them more user-friendly
The market for beverage cans will see an upward trend shortly due to the changing work lifestyles of consumers across the globe. Rising household income, consumer demand for better quality and safety, and increased awareness of maintaining a healthy diet across multiple formats that are easy to carry are the major factors that will lead to the growing demand for cans in the market. The demand for beverage cans is substantial in developed regions such as North America and Europe and is growing gradually in other developing regions such as Asia Pacific. The demand for fresh and organic beverage products, especially in the non-carbonated segment, will boost the potential growth of beverage cans in the coming years.
Challenge: High usage of plastic for packaging due to lower cost
There is little awareness about the benefits of metal packaging of beverages in developing countries. Additionally, the high cost of raw materials used, such as steel and aluminum, restricts consumers from using these products. The major challenge faced by metal can manufacturers is the replacement of metal with polyethylene terephthalate (PET) bottles, especially for beverage products. Other sustainable packaging materials, such as paper, glass, and plastic, are more cost-effective than metal packaging. However, PET-based cand are gradually getting adopted in the market as well.
Key Market Players
Key players in this market include include major players such as Crown Holdings Inc. (Philadelphia, US), Ardagh Group S.A, (Luxemburg), CPMC Holdings Limited (China), Toyo Seikan Group Holdings Ltd. (Tokyo, Japan), Can-One Berhad (Malaysia), Can-Pack S.A (Poland), Ball Corporation (Colorado, US), Envases Universales (Spain), Universal Can Corporation (Tokyo, Japan), Interpack Group Inc. (China), GZ Industries (Nigeria), Showa Denko K.K (Tokyo, Japan), Swan Industries (Thailand) Limited (Thailand), Nampak Bevcan Limited (South Africa), The Olayan Group (Saudi Arabia), and Techpack Solutions Pvt Limited (Seoul, South Korea). These major players in this market are focusing on increasing their presence through expansions investments, mergers acquisitions, partnerships, joint ventures, and agreements. These companies have a strong presence in North America, Asia Pacific and Europe. They also have manufacturing facilities along with strong distribution networks across these regions.
North America is projected to dominate the majority market share, in the global beverage cans market, in terms of value, in 2021
North America is a key manufacturer in the beverage industry. The region is mainly dominated by many consumers for canned beverages across the globe. North America is the biggest consumer of aluminum cans, accounting for more than one-third of the total global consumption. However, the cans market for beverages is expected to witness a steady growth rate during the forecast period.
