Beverage Cans Market

Beverage Cans Market Outlook (2022-2032)

The global beverage cans market is valued at US$ 45 billion in 2022 and is projected to touch US$ 75 billion by the end of 2032, registering a CAGR of 5.2% from 2022 to 2032 (forecast period).

A beverage can is a container that is particularly made for carrying liquids such as fruit and vegetable juices, carbonated drinks, beer, flavored drinks, and ready-to-drink coffee and tea. These cans can be constructed of plastic, metal, or aluminum, among other materials.

Beverage cans can be chilled rapidly and feel especially fresh to the touch. The sound of a can opener is a distinct indicator that the drink is completely fresh. Beverage cans are also convenient and portable, besides being sturdy and lightweight, making them an excellent choice, especially for those living active lives.

Plastic pollution has recently been a major worry for people across the world; hence, the use of aluminum beverage cans is increasing for various products. Beverage cans have several environment-friendly advantages. These cans have a greater recycling rate than other materials such as glass. Metal cans are completely recyclable and can be recycled indefinitely without performance loss. Furthermore, aluminum recycling consumes approximately 95% less energy than aluminum production from raw sources.

Additionally, beverage cans are less expensive as compared to other beverage containers, which is another reason that is contributing to the increased use of cans in beverage packaging.

The COVID-19 pandemic had a significant impact on the sales of beverage cans. The limitation on bauxite mining, aluminum recycling, and raw material transportation affected the supply chain. As a result, beverage manufacturers experienced a shortage in the supply of cans. However, demand was high during the COVID-19 crisis. Due to COVID-19-induced lockdowns, consumers chose to buy packs of beverages for at-home consumption, which fueled beverage demand during the pandemic.

Beverage can producers are observing an increased demand for environment-friendly containers as a consequence of the pandemic. Furthermore, sales of healthy ready-to-drink drinks are picking up steam, forcing producers to invest in high-quality beverage cans.

Manufacturers are also focused on innovative technology, such as temperature-sensitive inks, to make cans vibrant, attractive, and convenient to use. The technology used in the production of beverage cans has become more modern and sophisticated than in the past. It has encouraged an increasing number of manufacturers to be more innovative in how they create their packaging. As a result, packaging has become much safer and more efficient.

Report Attributes	Details
Beverage Cans Market Size (2022)	US$ 45 Billion
Projected Market Value (2032)	US$ 75 Billion
Global Market Growth Rate (2022-2032)	5.2% CAGR
North America Market Share (2021)	44%
Aluminum Beverage Cans Segment Share (2021)	96%
Alcoholic Beverage Cans Segment Share (2021)	38%
Key Companies Profiled	Crown Holdings Inc. Ardagh Group Aditya Birla Management Corporation Pvt. Ltd. (Novelis) Ball Corporation Silgan Holdings Inc. Toyo Seikan Group Holdings Kian Joo Can Factory CPMC Holdings Ltd

Why is Beverage Can Usage Only Expected to Rise Steadily Going Ahead?

“Booming Beverage Industry Worldwide to Drive Market Expansion”

Global demand for beverages is being driven by factors such as urbanization and population growth. Moreover, consumer expenditure on beverages has risen in emerging countries as disposable income has increased.

Brand preference has been an important factor in increasing the demand for beverages in emerging nations, hence boosting the global market for beverage cans and beverage carrier rings.

• For example, Pepsi and Coca-Cola have an enormous influence on customers in developing countries.

Furthermore, consumers prefer beverages with recyclable and sustainable packaging, which increases the demand for metal cans. Moreover, changing lifestyles and increased health consciousness have raised the need for nutritious and healthy drinks, bolstering the global beverage cans market expansion.

“Rising Environmental Concerns about Plastic”

Several beverages are packaged in plastic containers, which has an adverse effect on the environment, increasing the demand for beverage cans.

• According to an independent study, humans use approximately a million plastic bottles per minute, with an extra 500 billion plastics used each year.

Nevertheless, pressure from numerous government bodies pushed manufacturers to cut plastic usage while increasing cans output for beverage packaging. Aluminum cans output recently expanded since it is 100% recyclable and environmentally beneficial.

As a result, rising environmental concerns among the population are anticipated to aid the global beverage cans market growth.

“Increasing Developments in Beverage Can Design & Technology”

Increasing developments in beverage cans design and technology are projected to accelerate the global beverage cans market growth. The majority of the major producers in the global beverage cans market are focused on R&D operations to make the beverage cans more innovative.

• Ardagh Group, a major beverage cans producer, is producing custom-shaped metal cans for the premium iced coffee brand Gaya Gold Coffee. These excellently crafted cans have already made a big impression in the UAE market and will soon be available in other Middle Eastern nations.

Which Factor is Most Likely to Slow Down Market Growth?

“Growing Concerns about Use of Hazardous Materials”

Aluminum can makers coat the inside of cans with thin plastic coatings to stop aluminum from leaking into drinks, exposing them to harmful levels of Bisphenol A. (BPA). Customers may experience significant side effects and health difficulties as a result of this, including infertility, cancer, and polycystic ovarian disease.

Even though aluminum cans are recyclable, half of all aluminum cans wind up in landfills, resulting in the increasing manufacture of new cans. Nitrogen and sulfur dioxide are generated during aluminum smelting, inducing smog and acid rain.

As a result, the growing concerns about hazardous materials are a major factor projected to slow the growth of the global beverage cans market.

Country-wise Insights

Why is the United States the Largest Revenue Generator in North America?

North America accounted for 44% share of the global beverage cans market in 2021. The United States is likely to be the largest revenue generator in the beverage cans market in North America.

Metal cans are in great demand in the United States due to the rising consumption of aerated and other alcoholic beverages. Moreover, the existence of e-commerce enterprises and food and beverage manufacturers is expected to support the beverage cans market growth in the United States.

Furthermore, increasing consumer awareness of the importance of consuming nutritious meals and changing lifestyles are driving up demand for nutritional and energy drinks, boosting market growth.

Additionally, rising government laws requiring the use of sustainable and recyclable beverage packaging are predicted to spur the development of the beverage cans market in the United States.

Category-wise Insights

Which Material is Most Widely Used to Manufacture Beverage Cans?

Aluminium beverage cans accounted for 96% share of the global market in 2021. This is due to the increased usage of aluminum, which provides packaged beverages with a longer shelf life. Furthermore, the material can be quickly cooled and heated for sterilization, and it preserves the integrity and structure of packaged products.

Aluminum cans are among the most recycled beverage container in the world. An aluminum can includes 75% recycled metal on average. Since they are stackable and lightweight, they reduce overall carbon emissions during transportation. They also increase logistic companies' storage and shipment efficiency.

Moreover, increased worldwide beverage consumption and a rise in the demand for sustainable packaging alternatives have resulted in greater use of aluminum cans. Additionally, these cans can be personalized in terms of colors and 3D prints, as well as embossed, which makes them more attractive to buyers.

Why are Alcoholic Beverage Cans the Most Profitable Application Segment?

Alcoholic beverage cans held 38% share of the global market in 2021. This high segment share is linked to growing disposable income, rising millennial demand for alcoholic beverages, and increasing consumer demand for high-quality/premium alcoholic products.

Furthermore, the easy availability of a range of alcoholic beverages in supermarkets is projected to promote consumption, benefiting segment growth. Moreover, the alcoholic beverage cans segment is likely to be driven by increased visibility and an appealing range of alcoholic beverages, initiatives by manufacturers to improve the distribution channel network, and new product introductions.

The carbonated soft drink beverage cans segment is projected to follow the alcoholic beverage cans segment in terms of growth. Due to rising disposable income, increasing urbanization, and new product releases by leading manufacturers such as The Coca-Cola Company and PepsiCo to acquire market share, countries such as China, Brazil, and Mexico have high per capita consumption of carbonated soft drinks, driving the segment growth.

Competitive Landscape

The beverage cans market is tremendously fragmented with the presence of several worldwide corporations. Leading players in the global beverage cans market are pursuing competitive pricing and technological improvements, together with new packaging solutions, to achieve a competitive edge.

Moreover, to improve their market position, the majority of large corporations have employed many inorganic and organic growth tactics. Furthermore, production growth in places where sustainability consciousness is growing and new product releases are among the important business tactics these firms take to expand their product range and meet increasing product demand.

• In July 2021, Ball Corporation established new aluminium beverage packaging factories that can manufacture millions of cans yearly. Ball Corporation is to build additional operations in Western Russia and the East Midlands of the United Kingdom, adding billions of cans per year to its current capacity. Each factory is expected to produce billions of cans per year in a variety of sizes and formats.
• In May 2021, Volnaa launched packaged drinking water in aluminium cans, making it more straightforward for individuals to securely sip water on the go. With the relock revolution, the firm intends to combat the threat of plastic pollution by producing cans that are 100% recyclable. A company spokesperson noted that the product could be moved from the shelf to the dumpsters and back to the shelf within 60 days. Due to these characteristics, the company is likely to have long-term growth.

Key Segments of Beverage Cans Industry Research

• By Structure

  • Two-Piece 
  • Three-Piece 

• By Material

  • Steel 
  • Aluminium 
  • Other (Glass & Plastic)

• By Capacity

  • Less than 12 Ounces
  • Between 12-24 Ounces
  • More than 24 Ounces

• By Application

  • Alcoholic Beverage Cans
  • Carbonated Soft Drinks
  • Sports & Energy Drinks
  • Other Beverage Cans

• By Region:

  • North America
  • Latin America
  • Europe
  • APAC
  • MEA