PUBLISHER: DataM Intelligence | PRODUCT CODE: 982638
PUBLISHER: DataM Intelligence | PRODUCT CODE: 982638
A beverage can is a container, specifically designed to hold liquids such as carbonated drinks, fruits and vegetables juices, flavored drinks, beer, and ready-to-drink teas and coffees among others. These cans are made from steel, plastic, or aluminum among others. Beverage cans have a large printable surface area, which is not generally possible with other packaging formats. Use of high-definition printing and bold colors on aluminum cans attract consumer interaction with the package. Beverage cans are preferred for their convenience, lightweight, and portability and are ideal for active lifestyles, as they do not break easily. The increased demand for the alcohol beverage which is to be stored at low temperatures is driving the usage of this beverage cans as they help in storing the drinks at low temperatures which helps to hold the taste and properties of drinks. Moreover, the rise in health concerns among the people to avoid plastic containers as they are harmful and non-bio-degradable is driving the usage of beverage cans market during the forecast period 2021-2028.
Market Dynamics: Innovations in beverage cans technology is expected to drive the global beverage cans market
The innovations in beverage cans technology and design is a key element in the global beverage cans market. Most of the prominent manufacturers in the beverage cans market are focusing on research & development activities to make the beverage cans more innovative. For instance, Ardagh Group, a leading beverage cans manufacturer is manufacturing special shaped metal cans for luxury iced coffee brand Gaya Gold Coffee. These exquisitely-designed cans have already made a huge impact in the United Arab Emirates market and will soon be launched in other Middle Eastern countries. Furthermore, Crown Holdings, Inc. launched a new range of beverage cans with temperature sensitive inks, which can increase the customer interaction before, during and after the beverage consumption. The new augmented reality packaging CrownSmart launched by Crown Holdings, Inc. is also an innovative way of interaction with the consumers. The CrownSmart unique codes can be scanned and are helpful for collecting experiential content that can be used as anti-counterfeiting technology.
Moreover, consumers are always on the move, which is majorly impacting the beverage consumption habit of consumers. Consumers are seeking a quick, on-the-go and easy solution for beverage consumption. Hence, brands are focusing on offering beverages in convenient packaging to attract the consumers. Offering convenience is becoming a priority for brands and manufacturers. According to a research conducted by Can Manufacturers Institute (CMI), more than 80% of consumers believe that cans are a better and effective packaging compared to others. It protects the taste and carbonation of beverages. In addition, more than 70% consumers stated that, a unique shape and printing space on cans is more appealing compared to other simple beverage cans. Majority of the consumers try new products based on the design of the container, owing to which the market for beverage cans is expected to grow during the forecast period.
However, the fluctuations in the cost of raw material are challenging the production of the beverage cans. The defects in three-piece type cans, such as leaks, inability to withstand high pressures and temperatures are challenging the market during the forecast period 2021-2028.
Market Segmentation: Alcoholic beverages segment is expected to be the largest segment with a share of XX% during the forecast period
The global beverage Cans market has been segmented by type into carbonated soft drinks, alcoholic beverages, and fruit & vegetable juices among others. The alcoholic beverages segment held the largest share as of 2020, owing to the increased consumption of alcohol beverages globally. High demand for alcoholic beverages during various sports events such as Barclays Premier League and basketball leagues is expected to drive the demand for alcoholic beverage cans. In addition, extensive promotional activities organized by the leading beverage manufacturers such as Coca-Cola and PepsiCo to promote the consumption of beverage cans is expected to drive the industry demand. The carbonated soft drinks segment is also set to have growth owing to the increased consumption and availability of new flavors of drinks by different manufacturers.
Geographical Penetration: North America is expected to dominate the global beverage cans market
By geography, North America is expected to dominate the global beverage cans market in the year 2020, growing with a CAGR of xx% during the forecast period, owing to the availability of the high number of consumers of aluminum can stored beverages. Growing concerns regarding the use and consumption of sustainable packaging materials is expected to drive the industry demand in this region. In addition, rising demand for the product in the production of health and sports drinks such as Monster, Red Bull, and Gatorade is expected to propel growth. The United States held highest market share of XX% in the year 2020, owing to the sprawling growth of the soft drink industry is expected to have a significant impact on beverage can industry in the U.S. during the forecast period.
Asia Pacific was the second largest region accounting for XX% of the revenue share in 2020. The region has emerged as the major supplier of processed aluminum and steel sheets for the rest of the world. The region is characterized by an abundance of raw materials such as aluminum and steel for the beverage cans owing to the high availability of bauxite and iron ore in the region.
The global beverage cans market is highly fragmented with key manufacturers such as Ball Corporation, Crown Holdings Inc., and The Ardagh Group accounted for the majority of the beverage cans production. The market exhibits high dependence on raw material prices, change in preferences as well as drinking habits of the consumers across the globe. The market is characterized by continuous product design innovations and mergers and acquisitions to increase market share. For instance, in March 2020, Ball Corporation acquired Tubex Industria E Comercio de Embalagens Ltd., an aluminum aerosol packaging business with a plant near Sao Paolo, Brazil, for $ 80 million. The acquisitions will broaden the geographic reach and as the demand of sustainable aluminum can packaging increases the acquisitions will help to reach the market globally. In April 2019, the Ardagh Group, a beverage cans manufacturer announced the expansion of production at its Jacarei and Manaus can end facilities in Brazil. By doing so, the company is focusing on catering to the increasing demand of aluminum packaging. In August 2019, Crown Beverage Packaging North America, a beverage cans manufacturer in the North American Market opened a new graphics studio for beverage cans. This new facility enables the development of innovative ideas and designs for beverage cans in the market.
COVID-19 Impact: Increasing in sales of beverages due to stockpiling and panic buying
Stockpiling and panic buying of food and beverage products due to ongoing pandemic scenario is expected to benefit manufacturers of packaging and related services. Consumers prefer to buy multiple packs of beverages for at-home consumption due to lockdown, which, in turn, fueled beverage demand during the pandemic. The unexpected boost in demand for beverages has propelled the business of the global market. However, the restriction on bauxite mining, transportation of raw materials, and recycling activities of aluminum disrupted the supply chain. Beverage manufacturers faced a shortage in the supply of cans.