The global metal packaging market size was around USD 122.65 Billion in 2022 and is anticipated to surpass USD 167.16 Billion by 2031, accelerating at a compound annual growth rate (CAGR) of 3.5% during the forecast period, 2023–2031. The market growth is attributed to the rising demand for durable packaging solutions, especially from the personal care as well as food and beverage industries.
Metal packaging is sustainable industrial packaging primarily made from two key materials namely steel and aluminum. The packaging type provides superior properties including durability, flexibility, and cost-effective, which offer several advantages over other packaging alternatives for certain industrial use.
As compared to other packaging solutions such as plastics or paperboard, sheet metal packaging can offer high thermal resistance and withstand external pressure. Shipping barrels & drums, cans, bulk containers, aerosols, caps & closures, and bottles & jars are major products widely used in metal packaging.
The massive use of metal packaging for durable consumer products, especially food products is due to its key functions such as the ability to make airtightness, prevention of microbial development, and corrosion-resistant capacity. One of the key aspects of metal packaging is that it allows effective storage of products for a longer period of time, as compared to conventional packaging methods, without spoiling the products’ components and nutrition.
Similar to other packaging solutions, metal packaging is widely adopted for promoting brands as it provides clear information to consumers about products including essential ingredients, composition levels, names of manufacturers, and expiry dates.
Pricing Factors of Raw Materials for the Metal Packaging Industry
The overall growth of the metal packaging market is largely influenced by the availability of raw materials, price factors, and timely delivery of raw materials including precious metals, ferrous and non-ferrous metals, and base metals to packaging manufacturers. The changing landscape in global metal prices and its price trends act as a key determinant factor for the overall market revenue.
Metals including aluminum are widely used in industrial manufacturing and alloys such as steel are extensively used in various industrial activities including building construction, automotive parts manufacturing, shipbuilding, and infrastructure development. Considering the increasing demand for metals across industries, the supply of raw materials is likely to stay vibrant for the packaging industry as well in the coming years.
COVID-19 Impact On Metal Packaging Market
The market report finds that the COVID-19 pandemic opened up growth opportunities that helped moderate revenue generation for the global metal packaging sector. A major revenue share of the market was coming from the rising sales of packed food and beverage products, and increasing demand for essential items including personal care and pharmaceutical products during the pandemic.
The rapid expansion of e-commerce platforms during the pandemic offering a variety of essential items to customers presented another key aspect that boosted the demand for metal packaging. In fact, the sudden disruption in the supply chain caused by the global health crisis did not result in a noticeable decline in metal production, especially steel. The global crude steel production from 2019 to 2021 remained stable, which represented nearly 1.88 billion metric tons in 2020 from 1.87 billion metric tons in 2019.
Metal Packaging Market Dynamics
The research report presents a complete overview by providing detailed information about the current market trends, existing drivers, growth opportunities and potentials, and emerging challenges. The global metal packaging market report has up-to-date insights about market scenarios that can shape the overall market performance and output during the forecast period, 2023 to 2031.
Key Trends
Rapid shift to sustainable packaging solutions across manufacturing units
With the rising implementation of strict government regulations regarding environmental issues, packaging manufacturers are increasingly shifting to opt for sustainable packaging materials as their major raw materials. The growing adoption of sustainable packaging solutions in manufacturing units across industries is one of the major market trends. A wide range of alloys are considered to be major sustainable materials for packaging and can be retained almost 100% of their properties even after recycling. Using metal as a key component for packaging does not deplete natural resources and reduces resource wastage.
Major Drivers
Wide availability of metal as raw material for packaging
The wide availability of aluminum, tin-free steel, tinplate steel, and stainless steel as well as the low cost of production of these metals plays a crucial role in the market expansion. Increasing demand for metal packaging across industries due to its advantages such as cost-effectiveness, recyclability, malleability, and sustainability is further boosting the market revenue share. Moreover, the massive use of flexible metal packaging solutions including metallic paper and metal foils by several end-users helps in the rising global sales of metal packaging.
Increasing use of high corrosion-resistant metal packages
Some metals are naturally prone to corrosion, which acts as a major hindrance for the packaging industry. However, the increasing introduction of high corrosion-resistant metal packages results in the rapid adoption of metal packaging across industries, especially in the food and beverage industry. Steel sheets are more reactive especially when it makes direct contact with the packed items, especially beverages.
This problem gets resolved by using tin or organic lac coated on steel sheets that prohibit the direct contact of food items with steel. Thus, the rising use of tin-coated plates as key packaging materials across industries including the cosmetic & personal care, pharmaceutical, and food & beverages sectors help in the overall market growth.
Existing Restraints
High trade tariffs on raw materials import
Increasing imposition of high trade tariffs on metal imports, especially steel across countries is a key restraining factor hampering the market expansion. For instance, in March 2018, the US government under the administration of President Donald Trump, Washington imposed 25% tariffs on imported steel and 10% tariffs on imported aluminum, which was worth USD 16 billion and USD 9 billion respectively.
The step was taken to ensure self-reliance on domestic industrial growth for metal producers as the country witnessed a rapid increase in steel production capacity. Similarly, in September 2022, India appealed to the UK government to reconsider their recently imposed-tax duties on 22 items including steel products imported to the UK. With the imposition of the safeguard measures by the UK, India witnessed a decline in steel products export to the UK, which was around 0.2 million tons of trade volume.
Emerging Opportunities
Rising use of recycled packaging materials and increasing capacity for recycling steel scrap
Metals are easily recyclable and can still retain their original properties including physical strengths even after repeated recycling processes. The rising use of recycled packaging materials and the increasing recycling facilities for steel scrap in the packaging industry are offering lucrative opportunities for market players.
With governments’ green initiatives and favorable policies, the capacity for recycling mills of steel scrap across the globe is rapidly increasing, which is likely to have a major impact on market growth. In 2020, the production volume of global scrap steel exceeded 465 million metric tons, with the rising demand for recycled metals from major economies of developing countries such as China, India, and South Korea. However, the existing condition of overcapacities for steel production worldwide acts as an emerging challenge for steel producers.
Scope of Metal Packaging Market Report
The global metal packaging market research report includes an assessment of the market trends, market segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Metal Packaging Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Material Type (Steel, Aluminum, and Others), Packaging Type (Shipping Barrels & Drums, Cans, Bulk Containers, Aerosols, Caps & Closure, Bottles & Jars, and Others), and End-user (Food & Beverages, Household & Consumer, Healthcare, Personal Care & Cosmetics, Industrial, and Others)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, Market Trends, and Revenue Forecast
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Key Players Covered in the Report
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Ball Corporation; Silgan Holdings Inc.; Amcor plc; Ardagh Group S.A.; Tata Steel; CPMC Holdings Ltd.; Alcoa Corporation; Metal Packaging Europe; CANPACK; Ton Yi Industrial Corporation; Mauser Packaging Solutions; CCL Container; TUBEX; and DS containers
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Market Segment Insights
Steel segment to expand at a significant growth rate
Based on material type, the global metal packaging market is divided into steel, aluminum, and others.
The steel segment held a dominant market share, accounting for nearly 61% share of the overall market revenue in 2021, and is expected to expand at a significant growth rate during the projected period. The segment growth is attributed to the massive use of steel-based packaging containers including cans, bottles, drums, and jars, which ensure strong protection of packaged items from heat and other external conditions. Compared to aluminum, steel is stronger and more durable in extreme handling of packaging containers during transport and storage.
The aluminum segment had a significant size of the global market share in 2021 and is projected to constitute a major market share during the forecast period owing to the increasing use of aluminum in the packaging of durable food products. Aluminum packaging normally resists corrosion and does not react to the packaged items, thereby, being widely adopted in wrapping food items with direct contact.
Aluminum foils, as a major component of aluminum packaging, are extensively used in packaging food items, especially fast-food products and ready-to-eat items as the materials do not react with the food products even in direct contact. Unlike steel, aluminum is more lightweight and flexible as it can be bent, tempered, and mended to produce the desired packaging shapes and designs. The rising use of aluminum foil packaging among food delivery services is likely to propel the segment further in the coming years.
Cans segment to hold a key market share
In terms of packaging type, the global market is segmented into shipping barrels & drums, cans, bulk containers, aerosols, caps & closure, bottles & jars, and others.
The cans segment accounted for a sizeable market share in 2021 and is anticipated to dominate the market in the coming years owing to the massive adoption of cans for beverage items. Cans packaging is widely produced from aluminum and steel, but steel cans are mostly coated with tin and organic lac to prevent them from reacting when directly in contact with beverages. The rising consumption of energy drinks, carbonated soft drinks, and beer, especially in developing countries presents another key driver of the segment. In general, metal cans are broadly categorized into two-piece or three-piece cans, which are widely used in a variety of aerosol or spray packaging including deodorants.
The bulk containers segment is expected to constitute a large market share during the assessment period owing to the rising shipment of bulk industrial items, impacted by the increasing global trade and industrialization worldwide. A bulk container is an extremely heavy container and has a large volume of storage capacity, which is extensively used by industries as a major packaging solution for large-scale business operations.
In general, bulk container packaging has a storage capacity of five gallons of materials or 1000 liters and is widely used to transport mainly raw materials as well as finished products. Ranging from food to oil, bulk containers are widely used to ensure safety during long-distance transport. Most metal shipping containers are primarily made of high industrial-grade steel that can offer robust protection for packaged items.
Food & beverages segment to register a considerable CAGR
On the basis of end-user, the global metal packaging market is segregated into food & beverages, household & consumer, healthcare, personal care & cosmetics, industrial, and others.
The food & beverages segment accounted for a dominant market share in 2021 and is expected to register a significant growth rate during the forecast period owing to the wide use of metal packaging for durable food items including ready-to-eat and processed foods. Both aluminum and steel are widely used as major packaging materials that help in preventing micro-organisms development and increase the shelf life of packed food items.
The increasing expansion of food delivery services increases the use of aluminum-based packaging to wrap the ordered food items, which helps in ensuring the freshness and temperature maintenance in foods. Moreover, the growing use of metal packaging as a recyclable packaging solution in the food and beverages industry is further propelling the segment.
The personal care & cosmetic segment is anticipated to account for a major market share in the coming years owing to the wide use of metal packaging for cosmetic and personal care items. Metal packaging is widely used in a variety of cosmetic products that range from haircare to skincare including facecare items. Personal care items such as body sprays and perfumes are widely used in metal packaging in form of bottles and cans that can retain the high-effectiveness and prevent the evaporation of aerosols. The rising disposable income and increasing consumer spending on cosmetic items further contribute to the overall segment expansion.
North America to dominate the market
In terms of region, the global market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa.
The North America market size constituted a dominant share of the global metal packaging market in 2021 and the trend is expected to continue during the projected period. The regional market growth is widely influenced by the rising demand for packed food and beverage products, especially the wide consumption of canned drinks in the region.
Within North America, the US market accounted for a sizeable share in 2021 and is projected to reach USD 35.5 billion by 2030, due to the increasing rate of metal consumption in the packaging industry based in the country. Moreover, the presence of key global players and their increasing R&D programs for innovative metal components for industrial packaging further boost the regional market.
Asia Pacific is the fastest-growing market and the regional market size is anticipated to expand significantly during the forecast period. The market growth in Asia Pacific is attributed to the increasing demand for metal packaging in the region, impacted by the rapid expansion of the food & beverage, household & consumer, and personal & cosmetics industries.
In the region, China has the largest market and the country is projected to surpass the overall growth of the US metal packaging market in the coming years. In 2020, China produced around 1,053 Mn tons of crude steel, which was a surge of 5.3% as compared to the previous year’s production. With the emerging growth opportunities in the country, the metal packaging market in China is likely to register a 4.9% of CAGR during the assessment period.
Segments
The global metal packaging market has been segmented on the basis of
Material Type
Packaging Type
- Shipping Barrels & Drums
- Cans
- Bulk Containers
- Aerosols
- Caps & Closure
- Bottles & Jars
- Others
End-user
- Food & Beverages
- Household & Consumer
- Healthcare
- Personal Care & Cosmetics
- Industrial
- Others
Region
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- Ball Corporation
- Silgan Holdings Inc.
- Amcor plc
- Ardagh Group S.A.
- Tata Steel
- CPMC Holdings Ltd.
- Alcoa Corporation
- Metal Packaging Europe
- CANPACK
- Ton Yi Industrial Corporation
- Mauser Packaging Solutions
- CCL Container
- TUBEX
- DS containers
Competitive Landscape
Key players competing in the global metal packaging market are Ball Corporation; Silgan Holdings Inc.; Amcor plc; Ardagh Group S.A.; Tata Steel; CPMC Holdings Ltd.; Alcoa Corporation; Metal Packaging Europe; CANPACK; Ton Yi Industrial Corporation; Mauser Packaging Solutions; CCL Container; TUBEX; and DS containers. The competitive landscape of the market in developed regions namely Europe and North America is comparatively mature and the chances for new players’ entry in the regions are lower as compared to developing regions. Entering into the market of developed regions, the new players would be facing tough challenges from established companies in the regions.
Some of these major companies, however, adopted various business development strategies including mergers, acquisitions, partnerships, collaboration, product launches, and production capacity expansion to expand their consumer base and enhance their market share. For instance,
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On September 13, 2022, a US-based major metal-producing company, Alcoa Corporation introduced a new 6000 series alloy, namely A210 ExtruStrongTM as a part of its innovations in aluminum alloy development and deployment. The company claimed, the new product would offer advanced features including high-strength capacity and thinner in size that has a wide range of extruded applications across industries such as consumer goods, transport, and construction.
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On August 28, 2022, an India-based leading steel producer, Tata Steel signed an MoU with the state government of Punjab for setting up an electric arc furnace steel plant made from steel scrap. The plant set-up was part of the company’s commitment toward sustainable growth and its target to achieve Net Zero carbon emission initiatives by 2045.
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