Aluminium Foil Market Report

The demand for the Aluminium foil market is on the rise due to its extensive use in various industries such as food, pharmaceuticals, construction, etc. According to the report of The World Economic Forum, the global demand for aluminium foil will gain traction by almost 40% by 2030 which is from 86.2 Mt in 2020 to 119.5 Mt in 2030. The world trade of the aluminium foil market amounted to US$ 18.9 billion, which showed a total rise of 21.3%, which means trade rose from US$15.5 billion to US$ 18.9 billion. According to OEC World, India has the greatest potential of being a top exporter and surpassing China as a top exporter. The current gap between China and India in relation to the exports of Aluminium Foil is US$ 207 Million. Aluminium foil is also utilized in industrial applications because of its excellent resistance and affordable price. A variety of aluminium foils and alloys having various qualities can be created by the combination of metals including manganese, silicon, copper, zinc, magnesium or nickel. Aluminium foil has many uses and is essential in all industrial sectors, whether it is for packaging or more technical uses like vapour barriers in building houses or insulation in pipe systems.

There are numerous opportunities to focus on the aluminium foil market. The Electronic Vehicles sector needs to be focused on as the demand for electric vehicles is rising due to the use of battery-grade aluminium foil to create the battery. China, being a key producer and end user of battery aluminium foil, produced 122,700 tons of battery in the first half of 2023. The market for EV sales reached 14 million in 2023, where 95% of sales were recorded in the United States, China, and Europe. Due to this growth in electric vehicle sales, the overall sale of batteries will rise, which will fuel the growth of battery-grade aluminium foil for producing batteries. Countries such as the UK, Spain, France, Germany, India, and Norway are some of the countries that support the sale of electric vehicles by providing various subsidies to increase the sale of electric vehicles. It is expected that electric vehicles will surpass two-thirds of global car sales by 2030.

Aluminium foil plays an important role in the working of an air conditioner, protecting it from leakages and focusing on the reduction of energy loss. The foil used in air conditioners is called air conditioner aluminium foil. Due to rising temperatures, the demand for air conditioners rose, and the prices increased by 3 to 5%. According to the Japan Refrigeration and Air Conditioning Industry Association, the demand for air conditioners is expected to grow by 102% worldwide. This will consequentially increase the demand for air conditioner aluminium foil globally.

• Increase in demand for child-resistant packaging to prevent the risk of poisoning to children.
• Utilization of recyclable aluminum foil to reduce greenhouse gas emissions.
• Innovation of bags & pouches segment to protect food in better ways.
• To print product information and dosage guidelines on aluminum foil New high-resolution printing methods are used.

The major challenges that are faced by the manufacturers are the recyclability of the foils and ink spread. Though the aluminium foil is recyclable, the factor that restrains it is improper waste management. The aluminium foil is recyclable only where no food residue is marked. Sometimes the condition of aluminium foil is so bad that it can’t even be touched due to the amount of dirt present on it. The reason the dirty or a foil with food can’t be recycled is as a threat of harm to the machinery due to remains. Also, it is said that it is recyclable still. Due to its thinness, there is a possibility that it might not get picked during the recyclable process, as the confusion between paper and aluminium foil will be a challenging one, which will result in aluminium foil filling landfills and ending up polluting the environment. Due to their higher viscosity than other flexible packaging adhesives, aluminium foil glue is more likely to cause uneven ink thickness distribution during the curing process, which might result in the production of white spots.

In November 2022 a new aluminium alloy was created by the Institute of Light Materials and Technologies (ILM&T). A distinguishing feature of the material was its high resistance to heat. Thus, the coefficient of thermal expansion (CTE) of the new alloy was 1.5 times lower than conventional aluminium alloys and corresponded to the CTE of steel and nickel alloys. The new alloy was useful for the development of satellite and electronic components that were expected to operate in extreme conditions with high-temperature fluctuations.

In May 2021 RUSAL and Gränges AB signed an agreement to cooperate on the development of aluminium alloys for automotive applications. As part of the agreement, RUSAL developed new aluminium alloys, slab casting, and heat treatment processes, alongside Gränges which developed a process for the rolling and fabrication of Flat Rolled Products for automotive customers. Gränges AB. RUSAL produced a large range of alloys, including the aluminium-scandium lead alloys under the ScAlution brand. Due to their high technological, physical, and mechanical properties, ScAlution alloys contributed to lighter vehicles, thus lowering fuel consumption and air emissions. In December 2021 Hindalco Industries Limited, Aditya Birla Group’s metals flagship and the world’s largest aluminium rolling and recycling company, signed a definitive agreement to acquire Hydro’s aluminium extrusions business in India for an enterprise value of US$ 29 Million. This acquisition from Hydro, the Norway-headquartered aluminium and energy company, brought into the Hindalco fold, an integrated facility located in Kuppam, Andhra Pradesh, an experienced team of employees, and the ability to serve a robust portfolio of reputed customers.

List of companies operating in the Aluminium Foil Market include Amcor Plc., Henan Huawei Aluminum Co., Ltd., Hindalco Industries Ltd, Constantia Flexibles, Penny Plate, LLC, Neelam Global Pvt Ltd, UACJ Foil Corporation, SNTO Holdings Group, Toyo Aluminum Ecko Products, Eurofoil Luxemberg

According to the report, imports from the United States were awarded first rank in the aluminium foil market. The imports amounted to $2.05 billion, which makes the U.S. a growing market. According to the data collected by Simmons National Consumer Survey (NHCS) and U.S. Census data, the sale of aluminium foil market is expected to increase from 318 million to 327 million in 2024. Due to increasing E.V. battery manufacturing in Canada, it is anticipated that there can be a potential need for aluminium foil, and a market for the same will have a boost. In 2022, Brazil imported aluminium foil worth a total of $197 million due to the adaptation of aluminium foil in their food sector due to its benefits, majorly creating a barrier to heat.

The potential market for aluminium foil is Germany, where the imports were around $1.22 billion. Speaking about the overall Europe region, the market for the same is diminishing according to the report of the International Aluminium Journal. The demand in the European region has remained below the levels of 2022 throughout 2023. According to the figures released by the European Aluminium Foil Association, there is a double-digit fall in the final quarter of 2023. The total shipments fell by 14.6%, and exports were down by 22%. The major dominator in the aluminium foil market is Asia Pacific, which includes China as a prominent player due to its rapid growth in the food and beverage and pharmaceutical industries. In the year 2022, China was ranked number one in the list of exported aluminium foil markets. The total amount of aluminium foil exported summed up to $6.56 billion, amounting to a total of 34.8% of the total export share; whereas Japan was standing in fourth place in the list of exports, which summed up the 4.26% of the total export share, the total traded value of exportation was $806 million.

The report provides a detailed overview of the aluminium foil market insights in regions including North America, Latin America, Europe, Asia-Pacific, Oceania, and the Middle East and Africa. The country-specific assessment for the aluminium foil market has been offered for all regional market shares, along with forecasts, market scope estimates, price point assessment, and impact analysis of prominent countries and regions. Throughout this market research report, Y-o-Y growth and CAGR estimates are also incorporated for every country and region, to provide a detailed view of the aluminium foil market. These Y-o-Y projections on regional and country-level markets brighten the political, economic and business environment outlook, which are anticipated to have a substantial impact on the growth of the aluminium foil market. Some key countries and regions included in the aluminium foil market report are as follows:

• Aluminium foil market detailed segments and segment-wise market breakdown
• Aluminium foil market dynamics (Recent industry trends, drivers, restraints, growth potential, opportunities in aluminium foil industry)
• Current, historical and forthcoming 10 years market valuation in terms of aluminium foil market size (US$ Mn), volume (Tons), share (%), Y-o-Y growth rate, CAGR (%) analysis
• Aluminium foil market demand analysis
• Aluminium foil market pricing analysis over the forecast period (by key segment and by region)
• Aluminium foil market regional insights with the region-wise market breakdown
• Competitive analysis – key companies profiling including their market share, product offerings, and competitive strategies.
• Latest developments and innovations in aluminium foil market
• Regulatory landscape by key regions and key countries
• Supply chain and value chain analysis in aluminium foil market
• Aluminium foil market sales and distribution strategies
• A comprehensive overview of the parent market
• A detailed viewpoint on aluminium foil market forecast by countries
• Mergers and acquisitions in the aluminium foil market
• Essential information to enhance market position
• Robust research methodology