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Asia Pacific Metal Cans Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Published: | Mordor Intelligence Pvt Ltd | 120 Pages | Delivery time: 2-3 business days

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Asia Pacific Metal Cans Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)
Published: January 17, 2022
Mordor Intelligence Pvt Ltd
Content info: 120 Pages
Delivery time: 2-3 business days
  • Description
  • Table of Contents

The APAC Metal Cans Market is expected to register a CAGR of 4.4% for the forecast period 2021-2026. The food and beverage industry, with a major share in the metal, can provide packaging market, is witnessing huge demand amidst the COVID-19 pandemic, as the industry falls under the essential commodity. The lockdown enforced across the world due to the COVID-19 pandemic has bought a significant change in human consumption habits. There has been an increasing demand for packaged food products, meat, vegetables, and fruits, among others.

Key Highlights

  • The excellent preservative properties and structural integrity of the metal cans, offering higher shelf life, have resulted in the high usage of metal cans in the food packaging industry across Asia. Packaged and convenience food has become a staple diet for many consumers, owing to their hectic lifestyles and work schedules.
  • Consumer trends, such as a preference for small-size and multi-pack packaging formats, are supporting the volume growth of the global metal cans market.
  • Increasing demand for mini-cans has been observed, especially in the Asia-Pacific markets, such as India, China, and Japan. Therefore, most of the beverage companies in the region are offering mini-cans, which generally contain smaller volumes of products and cost less than the traditional canned products.
  • Further, Asian trends are mixed with Southeast Asia's growth. Multiple manufacturers from China and Japan have expanded their footprint in the region. For instance, Showa Aluminum Can Corporation, via its Project 2020+, has focused on the growth-acceleration of its business in the medium term by targeting Southeast Asia.
  • Then, as of October 2020, multiple large steel projects located in Southeast Asia were underpinned by Chinese investment. At the same time of the year, Southeast Asia reportedly gained attention as more food companies shifted away from plastic containers for more recyclable cans. UACJ Corporation, a Tokyo-based company, is expected to boost the output capacity of aluminum sheets at its Southeast Asian plants by 2021.
  • Furthermore, numerous innovations pertaining to manufacturing procedures, shapes, sizes, and smart packaging, are helping the manufacturers of metal cans to keep up with the current market trends. Clean surfaces that provide a wide range of multi-stage printing and labeling solutions are attracting many marketing innovations.
  • For example, Hindustan Tin Works Ltd, based out of India, offers its general line cans that are made out often and not only offer the highest barrier properties from oxygen, moisture, and bacteria but also act as excellent barriers from rodents and other pests to ensure that the products are safe inside the pack till it is finally consumed.
  • Moreover, metal cans, especially aluminum, are the most recycled packaging units, as they can be recycled at the end of their lifecycle without degradation in the quality, making them the preferred packaging material for brands across the industries, ahead of other materials such as plastic and paper. Hence, the return to the shelf as a new can in just 60 days makes aluminum packing suitable for the food, beverages, and aerosol industry. ​

Key Market Trends

Canned Food to dominate market share

  • The growing trend in the canned food market is innovations in packaging. With an increase in demand for chemical-free canned foods, manufacturers are focusing on innovations in packaging. Many brands of canned food products have started offering food in BPA-free containers.
  • The demand for sealed and tamper-proof steel container food is high, as they protect food from harmful bacteria. Also, due to the hectic and busy lifestyles of consumers, canned food is expected to gain more importance.
  • Pet food packaging can significantly influence the quality and safety of the food product through the provision of barriers to moisture and other environmental conditions that may result in contamination and spoilage. Metal is predominantly used in pet food packaging, including tin or aluminum, and it is sealed tightly so no food, odors, or leaks can escape.
  • Limited design flexibility and inconvenience in opening the cans have been the significant disadvantages for metal pet food cans. This segment is making an effort to increase its competitiveness by emphasizing the safety of steel cans and their environmental friendliness, owing to their recyclability and use of recycled content. Pet food packaged in metal cans is preferred over that packaged in plastic alternatives due to the tight seal and tamper evidence in cans.
  • Other advantages include its low cost, long shelf life, durability, and amenability to wet food products. Additionally, the presence of easy opening ends is expected to support continued opportunities. Fast-filling speeds and line efficiencies of metal food cans also make manufacturers reluctant to shift production to plastic alternatives, which are slower to manufacture and involve added production costs.

India to Witness Significant Growth

  • In the beverages segment, soft drinks are considered to be prime adopters of metal cans for packaging solutions. According to a report by PepsiCo India's bottling partner Varun Beverages Ltd, the Indian soft drink market may continue its growth trajectory, as the annual per-capita bottle consumption will reach around 84 by 2021.
  • The recent regulation on the ban of single-use plastics is expected to grow plastic packaging growth, which is expected to be enforced in the future once the discussion with all the stakeholders gets concluded. The Food Safety and Standards Authority of India is in the process of reviewing the ban on the use of single-use plastic materials to accommodate the use of eco-friendly alternatives.
  • With the growth of the alcoholic and non-alcoholic beverage market in the country, the demand for metal can packages is expected to increase significantly in the country. For instance, according to the Craft Brewers Association of India, the number of microbreweries in India galloped from 20 to 120 in the past five years.
  • The consortium, called the Aluminum Beverage Can Association of India (ABCAI), advocates replacing plastic and glass with aluminum as packaging material. Moreover, the use of aluminum cans in the country is 5%, and the association's objective is to help its growth to reach about 25% by 2030.
  • Moreover, the proliferation in the beer market by newer companies in the country is helping the Indian metal can segment. Ball Corporations also provides metal cans that meet the requirement of beverage products, with an annual capacity of 1.3 billion cans in India. According to the Ball Corporation, the consumption in India is less than one can per capita, which presents a massive opportunity for metal packaging providers to tap into the emerging market.

Competitive Landscape

The Asia Pacific Metal Cans market is moderately competitive, with few firms enjoying a dominant market share and few new entrants. The firms keep on innovating and entering into strategic partnerships to retain their market share.

  • August 2020 - The Chinese manufacturer of food cans, ORG technology, announced the launch of its white paper on the strategic development of food cans. The company focused on coated iron metal cans with moisture-proof, safety, environmental protection, corrosion resistance, anti-extrusion, and other characteristics to gain traction in the market.
  • February 2021 - Responsible Whatr, a home-grown brand, launched spring water in aluminum beverage cans made by Ball Corporation ('Ball'), the world's leading producer of aluminum packaging. The company intends to create a brand that signifies sustainability and become a significant contributor to the circular economy.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support
Product Code: 55728

TABLE OF CONTENTS

1 INTRODUCTION

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2 RESEARCH METHODOLOGY

3 EXECUTIVE SUMMARY

4 MARKET DYNAMICS

  • 4.1 Market Overview
  • 4.2 Industry Value Chain Analysis
  • 4.3 Industry Attractiveness - Porter's Five Forces Analysis
    • 4.3.1 Bargaining Power of Suppliers
    • 4.3.2 Bargaining Power of Buyers
    • 4.3.3 Threat of New Entrants
    • 4.3.4 Threat of Substitute Products
    • 4.3.5 Intensity of Competitive Rivalry
  • 4.4 Assessment of the Impact of COVID-19 on the Market
  • 4.5 Market Drivers
    • 4.5.1 High Recyclability Rates of Metal Packaging
    • 4.5.2 Convenience and Lower Price Offered by Canned Food
  • 4.6 Market Restraints
    • 4.6.1 Presence of Alternate Packaging Solutions

5 MARKET SEGMENTATION

  • 5.1 Material Type
    • 5.1.1 Aluminum
    • 5.1.2 Steel
  • 5.2 Can Types
    • 5.2.1 Food
      • 5.2.1.1 Vegetables
      • 5.2.1.2 Fruits
      • 5.2.1.3 Pet Food
      • 5.2.1.4 Soups
      • 5.2.1.5 Coffee
      • 5.2.1.6 Other Types of Food Cans
    • 5.2.2 Beverage
      • 5.2.2.1 Alcoholic Beverages
      • 5.2.2.2 Non-alcoholic Beverages
    • 5.2.3 Aerosol
      • 5.2.3.1 Cosmetic and Personal Care
      • 5.2.3.2 Household
      • 5.2.3.3 Pharmaceutical/Veterinary
      • 5.2.3.4 Paints and Varnishes
      • 5.2.3.5 Automotive/Industrial
      • 5.2.3.6 Other End-user Industries
    • 5.2.4 Other Can Types
  • 5.3 Country
    • 5.3.1 India
    • 5.3.2 China
    • 5.3.3 South Korea

6 COMPETITIVE LANDSCAPE

  • 6.1 Company Profiles
    • 6.1.1 Amcor
    • 6.1.2 Ball Corporation
    • 6.1.3 BWAY
    • 6.1.4 Crown Holdings
    • 6.1.5 Silgan Containers LLC
    • 6.1.6 Aj Packaging
    • 6.1.7 EBI Packaging
    • 6.1.8 Shanghai Jima Industrial Co.,Ltd

7 INVESTMENT ANALYSIS

8 FUTURE OF THE MARKET