Aluminium Bags and Pouches Market

Market Outlook for Aluminium Bags and Pouches

• What is the expected growth rate for the aluminium bags and pouches market through 2031?

  By value, Fact.MR has projected over 6% CAGR for aluminium bag and pouch sales during 2021-2031. In terms of volume, demand is expected to increase at around 5.7% CAGR over the same period.

• Which are the most lucrative markets for manufacturers of aluminium bags and pouches?

  As per Fact.MR’s projections, together, APEJ and Europe are projected to hold around more than 55% market share through 2031. China, Japan, India, Germany, Russia, and Thailand are markets expanding at high CAGRs.

• Who are prominent manufacturers of aluminium bags and pouches?

  Top suppliers of aluminium bags and pouches include tier-1 companies such as Amcor Ltd., Pactiv LLC, Novelis, Inc., and Bemis Co., Inc., which together accounted for around 35% share of global revenue in 2020.

Sales of Aluminium Bags and Pouches from 2016 to 2020 Vs Market Projections for 2021 to 2031

Historically from 2016 to 2020, the use of aluminium bags and pouches increased at around 4.6% CAGR, wherein, developing and developed countries such as China, India, U.S., Germany, Russia and the U.K. held a significant share in the global market.

The food & beverage industry is expected to grow around 1.7X during 2021 – 2031, owing to the fast-growing consumption of soft drinks as well as packaged food products. This is pivotal towards the growing demand for aluminium bags and pouches. Owing to its cost-effectiveness and recyclability, aluminium bags and pouches are being extensively used in food industry.

Different products such as pharmaceutical products, ready-to-eat food, and personal care & cosmetics are finding significant use of aluminium bags and pouches in packaging. The demand for these products have grown rapidly in the last half-decade, where, Pharma has punched the growth of ~3.9% between 2016 -2020.

Apart from this, governments of several countries are focusing on expanding its railway network which is poised to generate high demand for cutlery as railway catering is one of the leading end user of cutlery products.

Furthermore, forecast for the uninterrupted financial year 2021 to 2031 has been done by segregating ten years into three periods including short term, mid-term and long term. The aluminium bags and packaging market is anticipated to witness a healthy growth rate of more than 6% CAGR throughout the forecast period.

What are the Key Opportunities for Manufacturers of Aluminium Bags and Pouches?

Governments in different regions are encouraging manufacturers to set up production plants and establish distribution routes for aluminium bags. Besides, the government across different countries are focusing to reduce the use of plastic bags and other products which are causing pollution and several health issues. With its properties including recyclability and high thermal conductivity, aluminium has been replacing plastic packaging at a significant pace.

Since last few years, environmental regulations are getting stringent. For instance, on 11th June 2019, Prime Minister of Canada Justin Trudeau announced that by year 2021, Canada will ban single-use plastics, (most of which are used in food packaging) to reduce non-recyclable waste and protect environment. This is expected to bring a significant opportunity for aluminium bags and pouches.

Countries like India and China are having a large consumer base which will drive the demand for aluminium bags and pouches in the forecast period and generate more than nearly US$ 7 billion in revenue by 2031. The market is expected to create an absolute opportunity of around US$ 3 billion, at a steady growth rate of more than 6%.

What are the Roadblocks for Suppliers of Aluminium Bags and Pouches?

The aluminium bags and pouches market is dependent on aluminium, which is regulated by local bodies who fluctuate and try to manipulate the prices of raw aluminium according to their needs, owing to which, production costs vary, consequently hampering the margins of manufacturers.

In May 2021, global aluminium prices struck a three year high landing at US$ 2,535 per ton. Besides, increasing aluminium imports by key countries has further led to a swing in prices. In April 2021, China’s aluminium imports increased 36.1% as compared to March 2021. Surge in raw material prices are imparting a moderate degree roadblock for demand.

Which Region Offers the Largest Opportunity for Sales of Aluminium Bags and Pouches?

APEJ is the largest producer and consumer of aluminium bags and pouches. The market in APEJ is expected to whiteness double-digit growth. With its fast-growing urban population, China currently holds nearly one-third of regional demand. Fast food sector, especially takeaway meals, has been on a significant surge in China, consequently leading to swelled demand for aluminium bags and pouches.

Apart from the U.S., China, and South Korea have started to become epicenter for pharmaceutical products, which have been vacuuming in aluminium bags and pouches. By 2023, China’s pharmaceutical industry is expected to cross US$ 160 Bn, creating significant opportunity for pharmaceutical packaging products, including aluminium bags and pouches.

India is the second-largest market for aluminium bags and pouches in the region, acquiring around one-fourth market share with growth of nearly 5% in the last decade. The Indian government has been luring aluminium bags and pouches manufacturers by giving the leverage in tariffs and taxes in their operation.

How are Key Countries in Europe Driving Demand for Aluminium Bags and Pouches?

Europe is the second-largest market for aluminium bags and pouches, which has been expanding at a CAGR of above 5%. Europe is likely to gain over US$ 3 Bn absolute dollar opportunity over the decade. Germany holds over one-fifth of the regional market share. The market in Germany is further estimated to gain more than US$ 200 million absolute opportunity in the coming half-decade, and expand 2.1X by 2031.

Germany, the U.K., Italy, Belgium and France together account for over 40% of global drugs and medicine exports. This illustrates their demand for pharmaceutical packaging products including aluminium bags and pouches.

Country-wise Analysis

What Makes the China Drive Demand for Aluminium Bags and Pouches?

China has a fast-growing urban population that has necessitated demand for several products, including processed food and beverages as well as cosmetics. The market is growing at around 8% annually, and the sector garnered a revenue of US$ 177 Bn in 2020.

The fast-paced lifestyle of Chinese consumers has triggered demand for take home food, consequently laying fertile ground for food packaging materials. It has also triggered the growth of preventive healthcare sector in the country, consequently imparting a positive ripple effect on the demand for aluminium bags and pouches.

Category-wise Insights                                

Which Foil Type is Preferred for Aluminium Bags and Pouches?

Aluminium bags and pouches are essentially available in two categories non-printed and printed. Non-printed aluminium bags and pouches are the major market share acquirer at nearly 70% to 80% of the total market.

Majority of product manufacturers and packagers prefer non-printed aluminium bags and pouches due to which it is likely to have trajectory growth in the estimated period.

Printed aluminium bags and pouches are generally customized based on requirement. Their share is expected to increase in the future years.

Which Application is Aluminium Bags and Pouches Most Suited For?

Aluminium bags and pouches are used in numerous industries including fast food sector, bakery, ready-to-eat, confectionery, dairy products, beverage, personal care & cosmetic product packaging, pharmaceuticals, among others.

Among the aforementioned industries, pharmaceuticals and food & beverages are key stakeholders, followed by personal care & cosmetic products. Besides, application of aluminium bags and pouches have significantly increased in the packaging of tea and coffee, instant beverages, sausages, baby foods, biscuits and peanuts, pies and jams, soup concentrates, snacks, dried meat, ready meals and preserves.

Recently, Procter and Gamble launched its first ever reusable refillable aluminium pouches to be used for cosmetic products refilling. While P&G is set to reduce its plastic footprint, the other cosmetic manufacturers are also following the suit. This is expected to provide ample opportunities for aluminium bag and pouch manufacturers globally.

Apart from these, aluminium bags and pouches are also being purchased by residential consumers for their household food packaging. This has made manufacturers formulate a different pricing strategy and branding. Most aluminium bags and pouches are being offered through online channels for consumers.

Competitive Landscape 

Fact.MR has profiled the following key manufacturers of aluminium bags and pouches in its report:

• Amcor Ltd.
• Pactiv LLC
• Novelis, Inc.
• Bemis Co., Inc.
• Clifton Packaging Group Ltd.
• Ess Dee Aluminium Limited.
• Mondi Group plc
• Berry Global Group, Inc.
• Protective Packaging Ltd.
• Printpack Inc.

Impact of COVID-19 on Aluminium Bags and Pouches Market

COVID-19 have had a mixed impact on aluminium bags and pouches demand. While, the disruption in food services, packaged food products as well as cosmetic products imparted a jolt on aluminium bags and pouches demand, it was offset to a large extent with the surge in demand for pharmaceutical products.

The net impact although remained a single digit negative for the aluminium bags and pouches manufacturers. Besides, this supply side of the market was also impacted with the trade halts. However, the second half of 2021 is expected to show recovery in the overall demand, as all order backlogs for packaging products start to clear off.

Competition Analysis        

While tier-1 companies account for over one-third of the share, the tier-2 and tier-3 players have strong regional hold in their domestic markets. Majority of companies have focused on product launches and expansion of manufacturing units in developing regions.

Strategies include innovation, collaborations with key players, partnerships, strategic alliances, and strengthening of regional and global distribution networks.

• On 9 February 2021, Novalis Inc. has invested $300 Mn in China to expand its automotive aluminium capability of Zhenjiang plant to carter growing demand in Japan and Korea.
• On 25 November 2019, Hulamin Ltd. Has acquired aluminium rolling slab business of Isizinda Aluminium. The acquisition will help company in expansion as well as it will become leader in the South Africa.
• In April 2019, Amcor Amlite Ultra recyclable made from high barrier polyolefin film. It can be used across an array of applications including food, home and personal care, and pharmaceuticals.

Similarly, recent developments related to companies manufacturing aluminium bags and pouches have been tracked by the team at Fact.MR, which are available in the full report.

Report Scope

Attribute	Details
Forecast Period	2021-2031
Historical Data Available for	2016-2020
Market Analysis	US$ Mn for Value
Key Regions Covered	North America Latin America Europe Japan Middle East and Africa
Key Countries Covered	United States Canada Brazil Mexico Germany U.K. France Spain Italy GCC Countries China Japan India Malaysia Australia and Thailand
Key Segments Covered	By Printing Material Thickness Application Region
Key Companies Profiled	Amcor Ltd. Pactiv LLC Novelis, Inc. Bemis Co., Inc. Clifton Packaging Group Ltd. Ess Dee Aluminium Limited. Mondi Group plc Berry Global Group, Inc. Protective Packaging Ltd. Printpack Inc.
Pricing	Available upon Request

Key Segments Covered of Aluminium Foil Packaging Market

• Material Thickness

  • 0.007 - 0.09 Aluminium Bags and Pouches
  •  0.09 - 0.2 Aluminium Bags and Pouches
  •  0.2 - 0.4 Aluminium Bags and Pouches

• By Printing

  • Printed Aluminium Bags and Pouches
  • Non-printed Aluminium Bags and Pouches

• Application

  • Aluminium Bags and Pouches for Food Packaging
  • Aluminium Bags and Pouches for Beverage Packaging
  • Aluminium Bags and Pouches for Pharmaceutical Packaging
  • Aluminium Bags and Pouches for Personal Care & Cosmetics Packaging
  • Others

• Regions

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