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.
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Market Dynamics
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.
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.
Since the region is developed, the consumption of beverages is mostly high in the region compared to developing regions, such as Asia Pacific and South America. Moreover, the major key players of metal packaging, such as Crown Holdings, Inc. (US) and Ball Corporation (US), have a significant market share in the US, which has further contributed to the steady growth of cans. The US dominated the market in North America, owing to the rise in demand for sparkling water, carbonated beverages, functional drinks, beer, and cocktails.
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By structure, the
2-piece can segment is projected to grow at the fastest CAGR in the market
until 2026.
2-piece cans are mainly of three types: draw (shallow draw) whose height is less than their diameter; draw & redraw (DRD); and draw & iron (D&I). A 2-piece can comprises two components: a body integrated with a bottom lid and a lid with an opening. 2-piece cans require a double seaming technique to attach the can body with can lids to protect the content from external contamination. Steel and aluminum are the widely used raw materials for the manufacturing of these types of cans. These cans are suitable for the packaging of carbonated and non-carbonated beverages, such as beer, wine, sports drinks, and fruit juices. 2-piece cans have several advantages over 3-piece cans, one of which is that its body has no side seam between the body and bottom end. Therefore, the can is tightly sealed with less consumption of raw materials. The process of manufacturing a 2-piece can is easy and efficient than 3-piece cans. Also, 2-piece food cans are lightweight and available with a stackable feature, as a result of which they can save shelf space. With a continuously evolving packaging technology, the structure of the cans has also been improving with seamless can body and ease of printing on full cans; hence, 2-piece cans are estimated to replace 3-piece cans.
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